College students have to face tough financial situations in their life. They have to figure out the source in order to pay for college, earn some extra money and acquire quality education. This is challenging task for any student and no wonder they end up committing some uncommon money mistakes. These mistakes can create a severe financial damage that cost high amount in long term. Following is list of mistakes often made by most of the college students -
• High credit card debt: Credit card facilitates easy payments and the kind of rewards offered by them creates the obvious appeal among the students. The appeal often prevails over the drawbacks associated with them, which creates financial crisis for students who utilize it. Credit cards also play key role in formulating your credit history, which is directly related to other financial sources.
• Degrading credit score: Most of the college students tarnish their credit score by taking some poor financial decisions. Don’t be reckless while making your credit card or loan payments. Default payments can create immediate impact on your credit score which may take several years to rectify it. Poor credit score are the strong obstacles for students in getting other type of financial assistance.
• Lack of Budgeting: Students usually have extremely limited source of income and if they not able to plan these savings wisely which might get waste without any fruitful purpose. Lack of budgeting leads student in borrowing excessive money which give birth to other critical financial problems like high credit card debt, default in payment and poor credit score.
• Inappropriate use of student Loan money: Many students depend upon the loan to meet their college tuition fee expenses, which has risen drastically in recent years. Some students often use part of this loan to purchase things which are not necessary for education purpose. Many students assume that loans are easy to pay after finishing the education but this assumption turn into a financial blunder in most of the cases.
• Reaching for an Expensive College: Many students dream of enrolling for the prestigious college which charge high tuition fees for their students. For few degrees it doesn’t matter where your degree comes from, so paying some excessive money for that study may not be an appropriate use of money.
Above list of tips will help you in analyze whether your own way of educational financial planning is appropriate or not.