College presents students with a windfall of free money. You receive money to spend on whatever you need from your parents, sponsors or guardians. But because college is often a carefree environment, overspending is a likely to happen. However, it doesn’t always have to be like this! Students need to determine how to best take advantage of the opportunities and money that comes their way.
As you learned yourself (maybe the hard way), the spending habits you pick in college are more likely to extend into your career. Here are a few simple, straight forward money management tips to share wit your students:
Keep off credit cards
Simply put: credit cards are usually bad for you. Avoid credit cards as much as you can. There is always the temptation to buy what you can’t afford to buy now. When you borrow or buy goods with credit cards, some of them charge hefty penalties for maintenance, interest rates, accruing interests, etc. Instead, focus on living in your means and if possible, use paper cash unless you have to. Use the credit card for emergencies only.
Keep off nonacademic debt
It’s hard enough living debt-free. People often leave college with staggering debt. Let the cost of your education be the only debts you accrue in college.
Save and splurge
Don’t rush into making any large purchases. Take time to save. Continue until you have enough cash to buy the product in cash. You will be amazed, with the technology advances of today, you won’t even need it by the time you can afford it.
Pay your bills on time
Many people have a problem paying bills. They cultivate this behavior in college. Avoid being a statistic. Whenever you can, pay your bill on time. Paying bills on time, especially those which charge penalties for delays can help you learn to have a rich financial base later after school is done.
What advice to you give your students about money?
Emma Cecil writes tips and advices for students at Rate My Professor.