College students and fiscal responsibility. Historically, these two categories are not the best combination. College typically marks the first time the majority of students are on their own, socially, scholastically and financially. Students will face difficult financial decisions when it comes to money management, as they have to balance tuition, books, supplies, food and spending money. This financial balancing act can be problematic for anyone, let alone college students. Below we point out some common financial traps for college students to avoid and some tips for staying on budget.
Mistake #1 Credit Card Debt
A credit card is a great way for college students to pay for necessities and luxuries. A credit card can also lead students into debt….quickly. Most cards come with high-interest rates and risky terms. A credit card can give students the allusion they have more money than they actually do. Then the bill arrives. If students are unable to meet their monthly card obligations, they are constantly going to be playing catch up with payments, and ultimately paying much more money in the long run.
Mistake #2 Tanking your Credit Score
Speaking of credit cards, your credit score and credit cards go hand in hand. Opening and using a credit card is a great way to establish and build your personal credit score. Credit cards can also be an easy and quick way of ruining your credit score. Late and missed monthly payments on your card can blow up your credit score in a hurry. This has the potential to haunt you in the future when you apply for vehicle financing or purchase a home. Make sure you are responsible with your purchases and stay within your means so you are able to pay off your monthly obligations and keep a solid credit history.
Mistake #3 Abusing Student Loans
Most students rely on some sort of loan to help pay for their college experience. Tuition, room and board and supplies can add up. A common mistake made by students is to use that loan money for something other than school. While it may seem like a fun idea at the time, using loan money to fund a spring break trip to Jamaica is probably not the best idea. Using loan money up front is just going to dig yourself a deeper hole in the future, making payments more difficult.
Mistake #4 Staying in School Too Long
Let’s be honest, college is fun, but it is also expensive. A common mistake students make is getting too comfortable and extending their stay. Students can get used to all of the personal free time college allows, and try and put off the scary real world for as long as they can. The longer your remain in college, the more expensive it will be. Try and focus your attention on your studies, so you can ensure you are spending no more time than what is required to graduate.
In summation, there are tips and tricks students can follow to avoid costly mistakes and keep on a responsible budget, however, life can throw unexpected financial curveballs that are impossible to prepare for. In those cases, students can turn to Tio Rico for car title loans in Arizona. Title loans are a great source for quick cash when financial emergencies arise. Visit us online or in person to find out how to obtain quick cash today.