In order to build financial stability in life, college students will need to learn topics that extend beyond the foundational requirements of their major. Being smart with money is at the top of that list, and college is the perfect time to instill good behaviors and avoid falling into debt. Read more at: https://saagargupta.net/tips-for-building-financial-stability-in-college/

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Tips for building nancial stability in college
by Saagar Gupta | Jun 12, 2020 | Finance, Investing
In order to build nancial stability in life, college students will need to learn topics that extend beyond the foundational
requirements of their major. Being smart with money is at the top of that list, and college is the perfect time to instill good behaviors
and avoid falling into debt.
Financial literacy is something that all students should be taught for several reasons. It teaches the importance of a FICO score and
how it relates to every potential loan or credit card approval in the future. It also helps teach smart budgeting, which is something
that many college students will need to learn as they navigate their way through life.
To build a budget, it’s important to divide expenses into categories. The xed expenses are the ones that stay relatively constant
such as rent, meal plans, and tuition. There are also semester-speci c costs such as textbooks or supplies that need to be accounted
for. Whatever is leftover is called discretionary income and can either be saved or used for leisure activities such as entertainment or
dining out. The advice for sticking to a budget is the same as the initial steps in a weightloss program. Document everything. Until it
becomes second nature, it can be too easy to skip recording a little here and a little there, until you are surprised at the end result.
Having zero credit is not the same as having good credit. Start creating a positive credit history by opening a checking account with a
debit card and by always staying above the minimum balance. By avoiding penalties, you will steadily build up a history of reliability
and consistency that future lenders need to see. While it may be tempting to use a credit card in college, it can be very easy to fall
into the trap of “buy now, pay later”. Debit cards deduct automatically from your bank account, making every purchase feel more
real. That being said, responsible use of a credit card is a great way to increase your credit score. Choose one that is best for college
students, since they often have low-interest rates and/or perks for signing up.
Having a student ID is a great way to take advantage of discounts and promotions, making it much easier to save money. Make sure
you take the initiative to inquire about any ways to save money throughout your college years since you won’t be able to use your ID
after graduation. Not only will this give you stronger nancial stability in your years after college, but it will also instill great money-
saving habits for the rest of your life.
This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general
understanding of select nancial topics. It is not intended to provide speci c nancial or investment advice. Conduct your own due diligence
or consult a licensed nancial advisor/broker before making any and all nancial/investment decisions.
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