Learning to Avoid Student Debt
Along with learning how to study for college classes and how to get along with dorm-mates, students come to college needing to learn to manage their money and avoid student debt. While many students need to borrow money for their schooling, sometimes the lack of money management increases the need to borrow and the amount they want to borrow.
College students need to create a budget and stick to it. The budget must be realistic and the allocations in the budget must meet your daily needs. Determine how much money you will have coming in and then plan how you need to spend that money. The key word is “need.” Many of us believe that we need a new CD player or iPod or cell phone, when really we “want” a new one. Just because your cell phone company says you can replace your phone for a low fee doesn’t mean that you have to replace it. Does it still work? Then learn what it means to “make do” with the one you have. The same would hold true for other items that are not worn out. Just because a manufacturer comes out with a new model doesn’t mean you have to have it.
There will be time to live on a larger budget once you are out of college and on your own with a steady income to pay the bills for a new sofa or a new car. Learning to avoid student debt is as simple as saying “no.” College students have always been known to have small budgets. Live on the budget and live like a college student – when you are out of college, you’ll have plenty of time to buy the latest technological gadget for your needs.
Be careful of credit cards and the way they can lure you into spending money you don’t have. If you have a credit card, it is easy to see the sale on that gadget or new piece of jewelry and think that you will have enough money to pay it off when the bill comes. However, the problem is, we forget how many of those excuses we have already used this month and when the bill comes, we are shocked an unable to pay it because we first have to buy groceries with our pay check. Once you skip paying it off in full one month, it is very easy to rack up a very large debt in a very short amount of time.
Learning to manage your money wisely in college is not simple because you have several people who are pulling you to go out to eat or go to this concert or that event and pretty soon, all you available cash is gone. Learn to plan ahead and learn to save enough cash for emergencies. You will be better off in the long run as you avoid piling student credit card debt and general living expenses on top of the student loans you already have for school.
