Attending college is usually the students’ first experience of watching their cash flow as well as gaining their independence in life. It is so easy for a first year college student to get so deep in debt they don’t know which way to turn within a few short months.
By the time adolescents are in their late teens, they want nothing more than to be a grown-up and to be treated like one. This is understandable, but it’s important for them to proceed cautiously and to know the types of pitfalls they can plunge into if they are not careful.
Money for college students always seems to be on the short end and one of the first big temptations college students will face is the dreaded credit card offer. Most students see this as a chance to put an extra few thousands of dollars in their pockets so they can live the good life for a while; that is, until the money runs out and reality sets!
For parents, it’s extremely important to let your children know there will be many credit card offers. The trick is to find the ones with the lowest rates and never take out more than two credit cards, period!
The best way to approach credit cards for college students is for them to pretend they don’t even have them. They should be used only for emergencies and for those special occasions when they simply have no choice but to use them.
There’s no doubt that as a college student it will be difficult to refrain from overspending. After all, these are supposed to be the greatest times of your life, aren’t they? You will see plenty of people around you blowing money left and right, having the greatest time of their lives, but think about this; in the end, most of those people will be drowning in debt while you are at the top of the hill shouting ‘victory.’
It’s very difficult to eat healthy foods and to keep your expenses down while you’re attending College. Some students find they have no choice but to find a part-time job. This puts a lot of strain on your health and even though you’re young and your body can probably withstand it, there is a risk of having it affect your academics negatively. Regardless, if you can find a way to get a mini fridge in your dorm, that would be a great opportunity for you to save big
on food. Try your best not to make it a habit of eating out and only do so on special rare occasions.
Taking Out or Avoiding College Loans
On one hand, you probably want the best education possible and spare no expense. On the other hand, there are plenty of successful people who have taken their core classes at a local community college and finished up their imported classes at a major college. Guess what? These people graduated with that major college degree to their name. They paid much less because they made use of their local resources.
College students who take out loans routinely end up paying off their loans well into their 40s. Imagine paying $700-$800 a month and to risk not being able to buy your own home because you’ve defaulted on your college loan payments and/or you’ve declared bankruptcy. This happens to former college students all the time.
The start of your college education brings forth many financial challenges. Only you can decide what’s best for yourself but it’s important to educate yourself with all the knowledge possible so that there are no big surprises down the road.