This article was last updated on January 19, 2022
Managing finances and proving one’s credibility as a financially responsible individual of the society is very important for progress. Especially when you decide to go abroad to pursue your higher studies, you won’t have your parents to constantly remind you about the repercussions of spending callously. I’m sure all of us remember being told by our parents of assuming responsibility for our actions instead of blaming others or situational factors for that matter. This is exactly what one should do when it comes to being financially responsible. Students nowadays raise and manage their own funds and are given complete discretion and responsibility about where to spend it.
As young adults, we are making a crucial transition into adulthood, where our success is our responsibility. A recent study in the US has revealed that college students, despite being aware of the fact that they are personally responsible for their finances, indulge in spendthrift activities. This results in accrual of credit card bills and debts during their college years, ultimately leading to opting for student loan consolidation programs. Why reach the brink of such a situation?
Some learn by trial and error and some assume responsibility on their own. However in order to buffer yourself from any exorbitant financial blunders, you can practice ways to be financially responsible:
7 Powerful Financial Tips for College Students
Learn to say NO! The need for instant gratification can be satiated when you have enough finances. Restrict yourself from getting impatient and buying impulsively. Fix your finances by gaining command over the art of discipline. Avoid using credit cards for routine purchases and limit yourself to things you actually and really need. Credit card is a thing to be used in emergency. Imagine the ways you could possibly spend the money you will save on interest. That will motivate you.
Your thinking will make a difference
Expand your horizons and take responsibility of your thought-processes. Your mentality is what drives you. Students, who believe in multiplying their dollars and don’t only concentrate on earning them, go a long way. Train your mind to be goal-oriented to achieve the desired results. The go-getter sorts of personalities make it a point to make the most of their college years and not spend extravagantly and secure their future. Rummage through your brain and think of innovative and financially viable options to save.
Related: Investing Guide For Beginners
Note down your expenses
Keeping track of your expenses and categorically noting them down can give you a sense of purpose in fulfilling your financial obligations. Having sound financial knowledge will highlight the grave importance of budgeting. There is a very thin line separating a need and a want and you should learn to differentiate between the two and tighten your grip over your expenses. Channeling the right amount of money in the right direction is what you need to do. Only when you know where the unnecessary expenditure is being incurred will you be able to control it.
Plan your semester
Use your skills to the best of your abilities. Try and minimize your expenses by graduating on time or taking full course load. Also if you are competitive enough, then avail the scholarship offered at your college. Unleash the potential in you and consider yourself worthy of a stable life. You deserve the best.
One should certainly consider the impact and financial implications of their decisions on their future life.
Learning to budget with debt-management tools
Using what technology has to offer generously employed post-grad students, money management software may be the ticket to eliminating their debts. So first, let’s talk debt management software tools. Take a quick look to decide which ones are best for helping you get back on top of your accounts.
Many companies usually offer both free and paid versions of their software and online tools – so read disclaimers closely. When searching for the best free software, be sure to look for features like; mobile applications for working across platforms; the ability to securely link to your bank accounts and process transactions; and calculators that can help you determine how fast you can pay down your debt if you go about it in a variety of different ways.
Some options to explore
If you are a duped prior attendee of a for-profit college, a statistically lower-wage earning college drop-out, or if you’ve become permanently disabled, it may be hard to manage the money you don’t actually have coming in – let alone pay down, or pay off, your debts.
This is where debt forgiveness, consolidation, and income-based repayment plans can help you get back on track. Many of the programs are free and there are also companies that charge a small fee to help you put together the paperwork and apply for Federal Loan Forgiveness or consolidation on your student loans before you default.
Stay abreast of any announcements of changes to federal policy. Consider that if you attended Heald or Corinthian Colleges in California, Everest University and WyoTech, or Everest online in Florida, and were a victim of fraud and misrepresentation, you may be eligible for federal student loan debt forgiveness as a result of recent federal investigations into some of these colleges’ education practices.
Budgeting is a learned skill that gets easier with practice, and until you figure out what systems work best for you may want to try a variety of tools for different needs and situations. A custom combination of tools will most likely help you get the job done right.
Finally realize that managing funds and debt is more than just a financial responsibility
A recent Gallup study provides evidence for the fact that a stable bank account is a determinant of a healthy individual. American college graduates under a debt of over $50,000 have such cumbersome burdens on their shoulders to pay off this debt that they are reported to have poorer health, greater monetary struggles and even felt deprived when they tried to find a sense of purpose in their lives.
Elizabeth Sweet, a researcher at the North western University Feinberg School of Medicine, continues to say that cardiovascular ailments also result from debt-related stress, other than mental pressure. Young adults are the pioneers for society and their health is of utmost importance. This gives you all the more reason to adopt the tips as aforementioned to be a financially responsible student.
Becoming a financially responsible individual in life takes time; and is accomplished through a process called patience. This article acts as a springboard in helping you to develop your own ideologies toward becoming a student of your own financial affairs. The main goal in this post was to give you practical wisdom concerning being fiscally responsible for the affairs of your life. You have to constantly evolve and grow into the person you would like to become. While you are studying and preparing to succeed in life, make it your business to understand; the responsibility you have to become a wise steward not only of your money, but your relationships, talents, health, education, and community. As you can see being financially responsible is only one aspect of the equation but deserves most of the attention.