Financial Literacy for Students
How much money do you have? How much more do you anticipate in the near future? What are your expenses? Is there a way to boost the current flow of finances? Are you prepared for emergencies? These are among the questions every student should ask and answer often.
The availability of money is a major determinant of your college experience. Imagine what you can do with money and the luxuries you have to skip because you have depleted your finances. For instance, money helps you to obtain professional finance assignment help shielding you from endless days buried in the library while your friends are enjoying a life of movies, hikes, and picnics.
But why don’t students think much about personal finances? Maybe they expect parents and guardians to replenish their purses every so often. The availability of loans is also a reason for students to postpone decisions about personal finances.
The result of failing to ponder over personal finances include failing to achieve personal goals or ending in a bottomless pit of debt. When such ignorance becomes a habit, the stability of your financial future is compromised.
That said, why is it necessary to care and take necessary actions about your personal finances? Here are a few insights from student financial experts.
1. Money is Limited
The truth is that parents, benefactors, or guardians can only give so much. You do not have a blank check to spend anyhow you wish. As such, you must learn to spend sparingly and especially ensure that your pocket does not run dry. A return to your guardians might not yield much. If you are depending on student loan, you will not get a top-up just because you depleted your supply.
Limited resources mean that you must develop a budget. Choose what to buy and the items to skip. It teaches you about priorities and how to stretch these limited resources so that they meet short, medium, and long term goals. If you do not care about your personal finances, you will have nothing left a few weeks upon opening. You are tempted to borrow or engage in illegal activities that land you into trouble.
2. Money Touches Everything
Everything is about money. You need money to eat, dress, buy class supplies, for entertainment, and many such functions. Failure to care about personal finances denies you a chance to enjoy basic necessities or entertainment.
Consider your budget each day, week, and term. Without money, you will be kicked out of your hostel apartment. Money allows you to buy food and necessary learning amenities. The laptop you need for your class assignments requires money. According to experts, control over student finances results in a better college experience.
When one says that money is everything, you are tempted to think about material possessions. The reality is far from that because money touches on your emotional, social, and even mental health.
Consider a student holed up in the hostel because he or she cannot afford a few dollars for a picnic. Such a student will be dull and feel isolated while at school. On the other hand, a student who misuses his money will end up depressed when he or she cannot meet daily obligations. Granted, prudent financial management results in a socially, emotionally, and mentally healthy student.
3. You are Preparing for the Future
College teaches you so many things, including prudent financial management. Your performance is likely to spill into your future endeavors. It does not mean that successful finance managers sharpened their skills in school. What it means is that you have the perfect opportunity to try.
To understand the point better, consider the life of a student starting to live independently for the first time. Many college students are receiving a lump sum for the first time in their lives. They are expected to prepare a budget that stretches the money to the end of the semester. While the skills are not natural, it will take time and of course errors to learn. What is clear is that the lessons learned will have a huge implication on your future financial management habits.
Notice what some people have done with college finances, contributing to what they are today. Some established businesses using savings out of college. Others traveled the world, enjoying an experience many only wish they had. Other people have never managed to pay debts incurred while in college. The examples are endless. They only give direction on the different paths that people can take because of conscious decisions.
4. Money Needs to Take you to the End
The much money at your disposal at the beginning of the semester is meant to last to the end. Because the finances are limited, you must budget and use the money prudently. Since the money must last to the end, you must learn a thing about budgeting. It teaches to choose one item over the other and avoid peer pressure or impulse buying that depletes your finances. Once you run out of money, your options are limited.
5. Failure Comes With Devastating Consequences
Lack of money comes with consequences that will spread into your physical, mental, and emotional health. Without money, you cannot enjoy a healthy meal. Poor healthy will spill into declining academic performance. You also use money to facilitate your social life. Outings with friends, movies, and hikes cost money. As a student, you need money to pay your school fees and buy supplies like laptops or books. Without such provisions, you miss deadlines because you are depending on other people for your assignments. Such inconveniences have devastating consequences to your academic life.
There is no doubt that every student must pay close attention to his personal finances. Beyond helping you to enjoy a comfortable present life, such thoughts prepare you for what is to come once you start earning and are responsible for your money. And who thought that money has such direct impact on your overall life? It is only when you make a mistake with your personal finances that you realize the devastating consequences you have to confront in the end.