Top 5 College Student Money Mistakes
One of the great things about living your life during your 20s are the “UH-HUH” moments. It seems each year you will learn something new about your friends or even about yourself. You learn that you can cram for a test 5 hours before you take the test. And you learn how valuable sleep is to your mental conditioning. Oh, and coffee only keeps you awake for a minimal time. Most importantly, you learn about money management. You could have learned it through trial and error, or making the wrong financial decisions. Either way mistake(s) were made I thought I would share with you what some of those mistakes are to encourage you to avoid them.Mistake 1: Not reading the fine print on credit cards. You have to pay the credit card off each month or at least within 6 months. You don’t want to pay interest on your money. Also, be aware of when the 0% introductory period ends. After, you will pay interest if you don’t pay the card in full.Mistake 2: Lending money to your friends. Now, I know you want to help your friends out when in need. But, if you can’t afford to take the risk of losing that money, then don’t lend it. Obviously, you don’t have money to lend. Your friend(s) may have every intention of paying you back, however, what if they can’t pay you back? How will that affect you? I can’t tell how many times friendships and relationships are torn apart because of money.Mistake 3: Paying rent when you don’t have to. Unless you have a terrible relationship with your family, there is nothing wrong with paying low to no rent. Even after you graduate, it’s ok to live at home. There’s laundry service and cooking service. You will save more money this way until you can afford to live on your own. The downside could be lack of privacy. But, it’s not permanent, only temporary.Mistake 4: Not setting up your budget. Don’t break your neck over this. Know what your limits are. For example,usually college students will spend more money on entertainment. Have a budget for this. The more money you make the more likely you will spend. You must condition yourself to have limits.Mistake 5: Giving in to peer pressure. Have you ever been out with your friends and spent more money than you should have and felt a little guilty about it the next day? Typically, it’s called buyer’s remorse. Vacations, road trips (to Vegas?), or entertaining the night may have been some of the opportunities where you have taken advantage of your college experience. Even so, you shouldn’t spend money you don’t have. It’s ok to say “it’s not in my budget.” Generally, you will spend more than you can afford. This is how debt starts.Keep it Moneylicious!