As many students quickly figure out, living away from home means being responsible for personal finances. According to Jasmin Suknanan of CNBC, there are four common financial mistakes that college students are making:
Misusing Student Loans: Suknanan draws attention to the fact that many students may be receiving more money than needed to attend college. What this has shown to lead to is students using that extra loan money to fund non-educational activities. In the end, they are in a pool of debt that may be difficult to repay.
Missing Repayment Terms on Loans: When students accept loans, it’s easy to assume that they have the average seven years to repay those personal loans. However, it’s important that as a student, you are keeping track of how much money you owe and when the repayment is due. Falling behind on payments, needless to say, is not a good way to be financially stable.
Credit Card Debt: As a valuable financial tool to help build credit, credit cards also come with a lot of responsibility. It’s very important to always use your credit card with a plan (and the money) to pay off the remaining balance. In this article, CNBC highlights a statistic that claims in 2019, only 51% of students with credit cards planned to fully pay off their balances.
Money Management Can Wait Until Graduation: This mindset is a mistake that more often than not, college students make. Whether they have a job, internship, or their parents give them money every month, it’s important that their monetary income is managed despite the amount.
A great place for students to start learning saving and money management skills would be with Financially Fit Employees (FFE), which is why we have a back-to-school promotion going right now! The first 20 students to use the code STUDENT20 will get 20% off their monthly membership fee with FFE! All you have to do is use your student email and enter your university as the company name during registration and you’ll be all set! We look forward to helping all students prepare for their financial future.
Written By: Your Financially Fit Me Team