Every student entering the university feels nothing but freedom from all the rules, parents’ restrictions and school subjects. But adult life also includes responsiblity for personal finances. And this realm of life seems totally incomprehensible for young generation, as they know they can take money and banks will lend them, but in the beginning of the life way they do not capture an idea of paying all this money back.
So whether you are a student or a parent, this article will give you some tips how to avoid basic student finance mistakes and thus, avoid all the headache.
Are you using your student loan only for studies?
Surely, most young people do not think of paying for college by themselves. If you belong to the group who cares – you are an exception! Nonetheless, do not forget that student loans are to be paid back and do not expand it that much. If public transport is well-developed, why would you need a car? There is also no need to leave a dormitory if there are all the modern convniences and it is another spot to save some cash.
That is why do not use your student loan to cover all the extra expenses.
Do not go crazy throwing money all around
It is incredibly difficult not to spend all cash for semester during the first two weeks of studies. Decorating the room, meeting new friends for coffee, going out – all this means overspending. Just recollect one little hint: how are you going to pay back when the loan providers online in canada call for you? Restrict yourself, make up a budget, get accustomed to your own financial system – and you will be leading a healthy financial life all the future years.
Consider credit cards as evil
Not every single credit card should be accepted as evil but if you have six of them or more – pay some of them back and leave just one or two, but the ones that you will be using. Unfortunately, most students are not responsible enough to take charges of the credit cards. Though government has restricted credit companies policy. Yet, there is a way for an unexperienced student and an unreliable credit company to find each other.
That is why if you have decided to sing up for a credit card – check your balance monthly, pay back in time and try to track your expenses down so you will not go to the wall by the end of the first semester.
It is not that difficult to take care of personal finances – everyone has his/her own system and once you establish the one of yours, you will not find it very difficult anymore. Good luck!