Managing your finances in college can prove to be quite a daunting task for many students. Especially if you lack in basics of financial literacy. Which is nothing to be ashamed off, not everyone of us is good at everything, and for most it is the first time away from home. Back home your parents were responsible for managing all your money as they'd give you some monthly pocket money. But you were never bothered with having to spend money with restraint. For every time you ran dry all you had to do was ask mom or dad for money. But things are not the same as you enter college life. You are expected to manage your own finances. Keep track of your earnings, savings and expenditure and if you never did that before doing it for the first time that too all on your own can be quite scary. Thus, to put to ease the racing heart of some of you, mentioned below are some must know concept of the financial literacy for college students.
Basics of Budgeting
Learning how to draft a budget is one of the most important skills to have for a college student. Especially if you are living away from home and managing everything on your own. Moreover, budgeting is one of the most basic aspects of managing one's finances. With the advent of mobile applications and innumerous budgeting apps now available on your smart phones it is much easier to create and manage budgets in today's time. Hence, even if you are no math wizard there is nothing for you to worry. These apps make it easier for you to know exactly where is it that your money disappears too and how can you curb on your spending. However, on the other hand managing your finances without a proper budget can prove to be herculean task.
The concepts of interests are touched upon in mathematical lectures during the high school. But it is now that they become applicable in practical measures in your life. And believe it or not, it is very important to have a basic understanding of the concept of interest system. It can help you save some more money. Also if you have taken an educational loan the bank will be charging you interest on the loan amounts it important to have an understanding of these concepts to avoid paying great sums of money over a prolonged period of time. These skills will come in quite handy even in life after college. So, better learn them early on in life.
The Art of Savings
Undoubtedly, this is one of the most important part of managing your finances. The entire process of managing the finances is carried out for this very thing. Unless you are aiming to save some money there is no sense of going through all the trouble to create a budget and manage it. But most of the students fail to realize the importance of savings during the initial years. Living a lavish life, partying with friends, and to buy anything that you desire seems like a very alluring lifestyle. But it is bound to leave you broke sooner or later unless you are keeping some amount aside as savings. Learning the art of saving early on in life like in college is quite useful for it will come in handy when you start the corporate lifestyle.
The Credit-Debt Whirlpool
Having a credit card in their wallets is something that most students desire. But they fail to notice the consequences that come with having one in their wallets. For one, it is far easier to lose credit than it is to gain it. If managed correctly credit cards can prove to be quite useful. But if misused they will ruin you and drag you down to nothing. As youngsters we are prone to rash, impulsive decisions thus affecting our later life in great measures. To avoid making such mistakes it is best to understand the concept of credit and debit early on in life.
Identity Theft Issues & Safety
In this digital age, online money transactions, digital wallets and other such facilities though have made our life much easier but have also opened more doors for theft and fraud. Since we mostly shop online for most of our needs, our financial information are available on a lot many platforms thus, easily accessible to hackers. Making us more vulnerable to frauds. It is very important to understand the safety measures that one must incorporate while making online transactions. Never sharing your passwords with anyone, limiting the amount of financial information you share online or also sharing it only with trusted platforms are some of the preventative measures that you can undertake.
Read, understand and follow these basics concepts of finances. But also, make sure to have some more in depth knowledge about these concepts. The points mentioned about are just to familiarize your with the concepts. To be able to manage your finances effectively gain better insights on the topics mentioned above. Liked this article? Please share it with your friends and peers to help understand the basics of managing their finances. For more such articles please visit, www.jagranjosh.com/college