Common Money Management Mistakes College Students Make

Common Money Management Mistakes College Students Make
The most common money mistakes that you are likely to make during your academic life and some great tips that can help you avoid such mistakes during your academic life.
  

College life offers students various forms of experiences. To begin with, it is the first time some students get to spend their time away from their homes and parents. On the same note, it provides opportunities for students to learn how to make quick decisions without consulting anyone. It is vital to note that the newly found freedom could make a person excited, despite the fact that if it is handled arrogantly, it could make individuals commit a series of mistakes, especially when it comes to managing finances. While in college, most times, making mistakes is inevitable, and, sadly, some wrong decisions could have long-term devastating financial outcomes. The good thing is that most high learning institutions have finance departments or colleagues pursuing finance courses; hence, they could assist them in learning how to manage their finances. In addition, there is a lot of information on the internet that could assist students to make better financial decisions.

As a student, whenever you have difficulty completing your assignments, you could always seek assistance from companies offering custom writing services like Peachy Essay. The enterprise has a team of professional writers with vast knowledge on almost any subject. Therefore, you should never hesitate to seek help whenever you find yourself having difficulty understanding the lecturer's instructions or completing your assignments within the estimated duration. When it comes to managing finances, sometimes, as a student, you will be required to make difficult decisions. For instance, you will need to decide whether you will spend more time with your colleagues and have fun, or you will spend the most time studying and use your time purchasing revision materials. This article will discuss some of the common money management mistakes college students often make.

Misuse of student loan

Indeed, as the cost of pursuing education keeps rising, most students are finding it challenging to manage their college expenses. Some students have to attend more than two part-time jobs to be able to finance their academic expenses. For some students, enrolling in a student loan might be the only way to meet the high cost of education. A common mistake most students make is failing to utilize the money for the specific reason it was borrowed. Most students use the money from the student loan to party, purchase expensive gadgets, hang out with friends, and do other recreational activities without considering that the money will be paid with interest.

Spending too much on the wants

A common mistake most students make is failing to understand the difference between a need and a want. Although some students know the difference between the two, they often have difficulty or are unable to identify the one to prioritize. Learning how to budget for the two demands a lot of discipline since it helps individuals avoid overspending on the wants. Unfortunately, spending most of your money on the wants will reduce the amount of money you should spend on basic entities like books, pens, and other studying resources. Generally, I would argue that food is a need and tea is a want. Therefore, an individual would consider cooking food instead of preparing tea. If you want to budget well for your finances, you must strive to differentiate a want from a need. On the same note, you should always consider spending more on essential products than the things you just desire. Most importantly, you should avoid spending too much money on lavish things, such as gadgets, clothes, and shoes.

Comparing yourself with your colleagues

You will have difficulty excelling in your studies if you always compare your academic performance with your colleagues. On the same note, you will have difficulty managing your finances effectively if you are always competing with your colleagues on who has the latest clothes, shoes, or fashion. Indeed, different people have varying sources of income and preferences. Therefore, while you are thinking of prioritizing your studies, their attention or preference could be on something very different. As a student, you should avoid doing something to impress your colleagues and avoid comparing yourself with others.

Living beyond your means

Another common mistake made by most students is living a life they cannot afford. As a result, they usually end up with massive debts and have a challenging time with their finances. Whenever you want to make a financial commitment or purchase anything, you must assess all the costs associated with the product. In addition, as a student, if you want to avoid landing yourself in problems, you must ensure that you keep away from things that bring your anxiety and stress and purchase products that accrue more debt. If you have too many debts, the chances are high that you will have too many sleepless nights, which is unhealthy. You will also have a bad credit score and lose financial confidence.

Low savings

As mentioned above, the cost of pursuing education is very expensive. Apparently, most students have to look for part-time jobs to sustain their school life. It is vital to note that students usually incur high expenses not only in their academic lives, but also in other non-academic activities. Unfortunately, most parents and teachers do not remind or teach students about the essential role of saving. As a result, most students are usually tempted to spend almost all their finances with the hope that their parents will cushion them during the rainy days.

In conclusion, college life teaches students how to survive in the harsh and competitive world. Students get to learn the value of money and how to become independent. Learning about finances will assist students in avoiding being spendthrift or use most of their finances on wants rather than needs. By learning how to save, you will be able to enjoy and invest your finances. There is so much students can do with their lives, provided they are knowledgeable about the aspect of finances. Otherwise, financial illiteracy will make you remain in debt.

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