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College isn't easy for everyone. For many, it is a the
first time that they are out on their own and completely responsible for their
own finances. It is the first time that
they have to rely only on themselves to make sure that they have enough money
to take care of all of their financial needs.
With that in mind, it is a good idea to be aware of the mistakes that
many college students make in their first year out on their own.
Spending Their Loan Money
Remember that
the student loans that you have received are for your education - not for
fun! Your first priority should always
be paying for tuition and books. Then
you need to make sure that your housing needs are taken care of and that you
will have enough left over to feed yourself each month. If your student loans are your only form of
income, it is even more important to spend your money wisely. Try not to spend it on things like eating out
and going on vacation.
Building Up Credit Card Debt
Once you start
college you might find that the credit card companies are jumping to get you
signed up. Of course they are - you are
the future spenders of the country! If
you do get a credit card make sure that you don’t spend what you can’t pay off
in a month. Each month that your balance
is not paid off costs you more money in the long run. Turning to your credit cards for little
luxuries is an easy habit to get into and those little luxuries soon become big
ones.
Letting Bills Slide
Most college
students will have bills outside of food and housing to take care of. Cell phones are the norm these days but they
can easily get out of hand if you’re not paying your bill each month. Your bills and how you pay them will affect
your credit rating in the future and if you get behind or, even worse, have
your bills sent to collections, you are likely to find that buying a car or a
house is very difficult in the future.
Not Making a Budget
Learn how to
make a budget now while your expenses are at a minimum. Plan to pay bills and credit cards on
time. Plan to set aside money in a
savings account, even if your income is minimal. Once you get used to it, budgeting becomes a lifelong
habit that will benefit you far into your future.
