Attention College Students: Avoid These Common Money Mistakes

Common Money Mistakes College Students Make
The notion that college is supposed to be fun can really turn into something you had never expected. Spending too much money on entertainment while at college can seriously render an irreparable hole in your pocket.
EduZenith Staff
Last Updated: Mar 19, 2018
I just thought acting would be something to help out with my student loans, but my first year as an actress, I made more money than my parents. That's when I realized it could turn into a career. After that, I put everything I had into it. ~ Gabrielle Union
Now, not everyone can manage to do this! Being a college student means having negligible income or limited allowance. With so much to do and so many options to explore, surviving within the limited means becomes very difficult. Additionally, if there is a student loan to take care of, the problem only complicates further. Despite this financial crunch, giving into temptations to spend money still remains easy. A small falter in money management can render a student into a pressurizing problem. Young adults who lack experience in managing money, often find themselves in costly money related issues.

Unfortunately, these money matters extend beyond college years too. Paying off a student loan can take a long time, and take away a huge chunk from your income through your subsequent jobs. If this is not managed and planned well, it can take a serious toll on your savings. To alert you, here are the top money mistakes college students make, which you need to avoid at any cost.
The Burden of Borrowing
Money
Education is a big expense which every parent might not be prepared to provide for. In such cases, taking a student loan is the only way of raising money for college. A student loan can be for a long duration, but the interest makes it very hefty on the pocket. Many students do not understand loan arrangements well before taking it up. Also, thinking that a good paying job will sort out the loan issue later on can be a huge mistake. What if you do not find the job or what if job does not happen to be that well paying? Before borrowing money from financial institutions, one needs to understand the terms of payment very clearly. Additionally, not paying the interest in the grace period adds to the financial burden, making the expense bigger by the day.
Spendthrift Attitude
Gadgets and stationery
While it is true that college is about fun, and these are the best years of your life, most students solely remain in this idea of a college life. Sadly, this motto becomes the reason why they end up spending their money on unnecessary things, that they could have done without. For instance, gadgets such as laptops, tablets, and other entertainment gizmos take up a huge chunk of money. The other expense students tend to make is on books which they might not even use. Spending just because you have the money to, does not mean you might need what you are buying. if you have a tight budget, then you ought to think very carefully before you spend considerable amounts on anything that is not absolutely necessary.
Outstanding Bills
Night party
Freedom comes at a cost. Especially the one that most students realize much later. Not having parents around means late night parties, no curfew, no fixed routine, and essentially, you can ditch all the rules. But this also means no one to remind you about the impending deadlines, responsibilities, and duties. The biggest mistake students make with money is not paying bills on time. Outstanding rent, electricity, water, or the phone bill, can cause a serious problem when you have to pay them all together. Planning properly is of essence here, if you do not want to fall into the trap of ever-growing debts.
Out of Control
Online shopping using credit card
Credit cards and debit cards have become a part of student life, just as much as home parties and late night movies. The fun part about these cards is that they make paying for every need and luxury extremely easy. All you've got to do is swipe, and your wish gets granted. However, not many students realize the risks of debt that they tend to create with these cards. Credit card companies lure college students by cleverly shadowing the pitfalls of bad credit and perils of increasing interest amounts. Spending extravagantly is pretty easy, paying back is the difficult part always.
Wrong Choice of Major
Girl choosing career
Sometimes, a career choice seems like that's not what you wanted. Maybe taking another path is your true calling. But making these shifts between your electives or majors can surely take you on a path that you never intended to walk on. Changing majors means extending your study period, and which in turn means that you have to shell out more to sustain your college life. In the end, a substantial part of your college period turns out to be a waste, which translates to wasted expenses.
College is truly one of the best times of our lives. It is about college trips, parties all night, meeting new people, and making the best of friends who would last a lifetime. However, this can also turn into your worst nightmare if you use money carelessly. Money is a limited resource which cannot replenished that easily. Thus, as a student, when money is truly limited, it is important to make its prudent use.