With student debt at an all time high these guidelines can be adapted for students aound the world studying in University or College. Creating a budget has become an essential priority for all students in order to minimize their debt upon graduation.
A recent study by the Student Loan Marketing Association showed that 84 per cent of students admitted to be in more need of education on financial management. Steven Trumble, President and CEO of American Consumer Credit Counseling stated that: “As the cost of tuition continues to climb, more and more students are forced to seek out loans and financial aid to continue their education, because of these costs, many students are graduating with more debt than they could ever imagine.”
According to Nationwide Insurance 21% of students use a credit card during their time at college/uni if used correctly is a good way to maintain and build credit. To help students manage their finances the ACCC has offered five basic tips to help students manage their finances.
1. Stick to a budget – With a budget, you will be less tempted to use credit cards, which are often targeted at college-aged students, for everyday expenses.
2. Try a pre-paid credit card – Topping up prepaid credit cards, can help promote good spending habits so students can learn smart money management skills without risk of debt.
3. Borrow wisely, always lookout for new scholarships you can apply for. A scholarship is basically free money that you do not have to pay back upon graduation. Loans are great at the time, but with added interest they can get costly.
4. Get a job – Consider applying for a part-time job, such as a waiter, hostess, a retail worker, or babysitter. You may also be able to find a job on campus, such as a resident assistant or tutor. Having a job will provide you with extra money.
5. Cut unnecessary living expenses – More often than not, living on campus is significantly cheaper than living off campus. If your school provides on campus housing, take it.