College years are the years when young people start to find themselves need money to pay for education and there are also many things that they would like to buy. Students should become familiar with the common mistakes that people in their age make so that they don’t repeat the same financial mistakes. The following are the top 4 financial mistakes that college students make.
Many college students lack self control when coming to using credit card. They charge their card for almost all their purchases without caring about their ability to pay back the debt. Most students only make the minimum repayment for the credit card so it can take them more than 10 years to pay off the credit card debt. Credit cards may help the student to rebuild his credit if the balance is paid in full every month. Paying the balance in full every month can help you to save money on the interest charges.
There are lots of college students that lack discipline and neglect to pay the credit card bill on time. Every-time you are late in making repayment, you will get charged with penalty APR and late payment fees. If you are late in payment for 6 months, your card will be handed over to the debt collection company and this will leave a negative record on your credit report for 7 years. So, if you have decided to own a credit card, make sure you responsibly make the repayment on time.
Many college students never record down their expenses on their budget planner book. It is easy to compromise and not record down your expenses on a budget planner because you have light financial burden and not yet have a family to feed. The problem with most students is that their spending habit is not consistent month after month so keeping track of your expenses on the diary is the best way to save money. All you need to do is to estimate your monthly pocket money and get rid of unnecessary expenses. Without proper budget planning, you will end up spending more money than you have and then don’t have any leftover money to pay your outstanding credit card debt.
You may find your college loan insufficient to pay for your tuition fee after the next year because of the inflation and the increased in the tuition fee. Therefore, you should never use the money from your college loan for your own personal expenses as it will leave you with even lack of the money to pay for the tuition fee. Usually, the parents will help out in paying the difference that you are lacking in the tuition fee if it is not a big amount so you must never use the money from the loan inappropriately.