Financial mistakes College students do, know the biggest loss
Schools have been closed for a long time due to Corona, but the government says that children can attend school with the consent of parents. Meanwhile, there have been many examinations, dates for many other examinations that have been announced. School, college students do not worry much about their finances, but financial foresight is always beneficial. Nevertheless, there are some common money mistakes that most students make. They should avoid such mistakes. Let’s know what are the common mistakes made by the school, college students about finance …
High Uncontrolled Spending: While not necessarily the most common mistake among students. These may include buying designer clothes and premium shoes or watches, where less expensive brands may be equally good.
Low Savings and No Emergency Funds: Usually college students or young professionals cannot develop a habit of saving any allowances or some part of the salary. They keep spending what they get. Saving some money for an emergency fund is good for financial security and it can be spent wisely later.
Not making a monthly budget: One of the biggest financial mistakes for students or young professionals is not making a monthly budget. Having limited cash in the wallet, using a credit card with discretion is fine, but a budget calculator is also a must.
Abusing Instant Loan Apps: Today’s young professionals or even students have easy access to loans through instant loan applications, which provide new loans to borrowers without collateral. Repaying arrears on time helps in building a good credit score, which maintains financial stability and carries high-interest charges.
Misuse of Education Loan: Selection of education loans is often required to meet a tuition fee and educational expenses. But changing such loans for parties or holidays is a dangerous practice that can lead to a major cash crisis during the college period.