Building a house requires engineers and construction experts to understand that its foundation must withstand both dead loads and live loads, similarly to how college life requires a solid financial base to weather any storms that arise during its course.
Attaining basic financial literacy principles such as need versus want can assist students in avoiding debt and creating a solid savings plan.
Budgeting
Budgeting is one of the most vital financial lessons students can acquire. Budgets allow them to track expenses and income, helping save money, reduce debt and pave the way towards a prosperous future.
Budgeting requires students to distinguish between needs and wants. While certain things, such as daily coffee consumption or textbooks may seem essential, these expenditures could actually be cut from their budget if necessary.
Once students have created their budgets, it is important that they adhere to them as set and make any necessary adjustments as necessary. This will help avoid debt and create a secure foundation for future endeavors. Any additional money that remains at the end of each month should go toward paying down outstanding debt or saving in an online high yield savings account; doing so will allow their savings account to expand while encouraging good financial habits early on.
Saving
Saving is integral to reaching life goals, including college. College can be expensive and having a savings plan in place can help students avoid incurring too much student loan debt after they graduate.
Saving while studying can be difficult, but there are ways to cut costs. Consider buying in bulk or sharing subscription services like Netflix and Hulu with roommates to reduce costs. Furthermore, using apps such as Mint or Mvelopes to track spending will allow you to set savings goals more easily.
If you’re working part-time, try to focus on companies offering tuition reimbursement as this will not only give you extra money but can also provide valuable professional experience and enhance your resume. Furthermore, don’t forget scholarships! The sooner you start searching, the greater your chance is of finding something suitable to cover all of your education-related costs.
Managing Credit Cards
Credit cards have become an indispensable component of modern life, but their use must be used responsibly and monitored closely in order to be utilized successfully. Tracking spending habits is crucial in managing money effectively while using credit cards responsibly can prevent their misuse from spiralling out of control.
College students are at an age where they are beginning to make their own financial decisions independently, making this the ideal time to introduce them to how a credit card works and why it should only ever be used as an absolute last resort.
Establishing a solid financial base is critical to students’ future success after graduation. From moving into their first apartment or leasing a car, to finding employment, having a healthy credit score will help avoid high interest rates and other financial pitfalls. Nearpod’s standards-align content library provides educators with engaging formative assessment activities designed to teach these lessons – sign up today and gain access!
Living on Your Own
An apartment shared by roommates or house can be an eye-opening experience, with its attendant responsibilities of cooking, cleaning, paying bills and making sound financial decisions. When living alone for the first time it can be daunting but with our guide it doesn’t need to be.
Avoid incurring late fees or interest charges by being vigilant with your spending. For instance, it might be more financially responsible to rent a small, efficiency-oriented studio apartment than an expansive two-bedroom. Cooking meals in bulk, using water conservation programs, buying secondhand furniture can all save money when living expenses become excessive. Learning a budget will teach you to live within your means and set yourself up for financial success in the future – like an anchor holds ships steady so can a sound budget!
