Why is it Necessary for College Students to Learn to Budget Their Money?
For anyone who has ever gone off to college, you know how important it is to learn how to budget your money. There is a whole new freedom that you have at college, but you also have to consider the choices you make. Improper choices at a young age can haunt you as college days end. In college it is great to go to bed when you want, have a little fun, study, and just live life. However, this will come to an end. At graduation you will realize you need a job, money, and that you have to be more responsible with your resources if you have not already been. It can be a hard wakeup call to those who have not learned how to budget their money.
Ideally we should all know how to budget money before we ever leave high school. The unfortunate truth is that we often do not have a good grasp of this. We have relied on our parents too much to budget the finances and forget we will someday have to learn this. To really prove why college students need to learn how to budget their money, some examples are required.
You are a student about to graduate with a partial scholarship. Your parents have the income to help you and you have student loans. After one year of school the scholarship is over and you are required to get a job while going to school. In another year your parents suffer hardship. Now it is up to you to pay rent, buy your books, and find additional funding for your courses. You still have student loan options, but they have a high interest rate. Now you are looking at either paying for school now or paying for it in a few years once you have graduated.
This example is one of many that we could discuss. No one has the same experience, but at the end of college you will be required to make choices regarding your budget. Without learning how to budget your money your debts could and will get out of hand. When you have graduated your job will have to pay for rent, food, clothes, utilities, student loans, and possibly a car loan. If you do not know how to budget for all of the expenses you have you could end up making late payments or missed payments.
There is one more thing one has to consider about college students and budgets. Every financial product one has will be recorded. This means that a line of credit, bank account, or credit card is recorded on your credit history and used to create your FICO score. The FICO score determines your risk to a bank. Without a good score it is hard to get a loan from a bank let alone that mortgage for your family’s home. The decisions one makes in college can either harm or help you as your future continues.
May 3rd, 2010 at 7:43 pm
А это надо брать!Спасибо!…
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