College is the first time many teenagers are in charge of their own finances, which can be a recipe for mistakes. I know I was definitely nervous to keep of track of my finances on top of being overwhelmed by school and making new friends.
Most students arenโt swimming in money when they head to college, so they donโt actually have a lot of room for financial errors if they donโt want to be stressed about money for the rest of the year, or even their entire academic career. If youโre going to college soon, are in college or have kids in college, read on to learn more about the solutions to the 10 common money mistakes college students make.
1. Overusing a Credit Card
While swiping a credit card all the time might feel painless, this method of spending money can become harmful. Failing to pay off your credit card balance can lead to high interest payments if youโre not careful. (See how your spending affects your credit with a free credit report snapshot on Credit.com)
2. Going Out Just Because Your Friends Go Out
In college you can make friends with people who come from different backgrounds. Some of your friends might be super wealthy, or they may just spend their money irresponsibly. Either way, โgoing with the flowโ could end up costing you a lot. Find ways to say no to your friendsโ constant requests to order pizza delivery, or try to get a job so you have some extra cash to use when you hang out with your friends who are a little more careless with money.
3. Not Looking for Scholarships
College counselors will tell you that scholarships are like free money. If you donโt take the time to apply for scholarships, youโll never realize how much money (that youโll never have to give back) you could be receiving. Even small scholarships can add up if you receive several of them. You can win scholarships even if youโre not a freshman.
4. Skipping Classes
Sleeping in every once a while or skipping class because you just donโt feel like going is actually costing you a lot of money. At some of the countryโs most expensive colleges each hour of class can cost upwards of $150. Going to all of your classes helps diminish your chances of failing a class, which is ideal because if you fail youโll only have to pay more to take the same class again.
5. Missing Out on Free Stuff
Going to college gives you a ton of perks โ think of the libraries, gyms and cultural experiences all around you. Instead of leaving campus to go to a gym, the movies or a restaurant, you should use the gym at school, go to movie nights that clubs host and scout out free food to save money. (Here are 50 things you can get for free.)
6. Buying All Your Supplies at the Campus Bookstore
New textbooks already cost a ton, and after theyโre marked up at the campus bookstore they cost even more. You should buy used versions of your school books if you can, but always check Amazon and other online marketplaces, as they might be even cheaper than anything at the bookstore. Renting books is another solution, too.
7. Not Doing Your Research When Shopping
Students need to learn the art of comparison shopping so they donโt just buy the first thing on the shelf at Target. If you take a few minutes to check the price of your favorite body wash on a couple of sellersโ websites, youโll find it easy to always buy the cheapest products.
8. Spending All Your Money
Budgeting is something many college students neglect to do, and that comes back to bite them. If you finally have a supply of money and no parents telling you to what to do with it, the first thing to cross your mind probably isnโt โI should save half of my money!โ Youโll probably be tempted spend it all. Think of all the things you want to do in the future: have a job, own a house and maybe have kids. If you donโt save your money, itโll be harder to make those dreams a reality.
9. Confusing What You Want With What You Need
Many students struggle to tell the difference between what they need and what they want. I sometimes feel like I need Starbucks, but in reality Iโm just overspending by buying a shaken iced tea every day.
Instead of spending on things they only want, students should think before they buy, or find cheaper ways to get what they wantโlike making their own coffee or buying tea bags in bulk.
10. Staying in School Longer
Education is amazing, but the cost of staying in college for an extended period of time? Not so much. If you have student loans, your debt will only increase. On top of that, students with more debt are already putting themselves behind for life after college. Make sure you plan for the future, and try your best to graduate on time so you donโt have to lose extra money by staying in school longer.
Image: andresr
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