WHAT I WISH I KNEW AS A COLLEGE STUDENT
When I look back on my first few years of starting to become an adult I remember very vividly just how this felt. The anxiety, the excitement and the dreams that I had that I just knew I would make come true. Becoming an adult is a thrilling time where you begin to finally become who you are meant to be and you begin to try new things. When I became an adult however there are a few important things that I really wish that someone older and wiser had spoken to me about. I did not have anyone in my life that took the time to teach me about these things and this is something that would affect me greatly later in life as a result. One of the biggest reasons that people do not always talk about these things may not even be that they do not care enough to tell you. It may be that no one talked to them about these things, and they are still at the same place they were trying to figure these things out. It could also be that they are embarrassed of the mess that they feel responsible for that is their current financial situation and they are afraid that they cannot help you to understand the right way to do things. Well either way I am going to attempt today to make a difference in the life of today's youth, I wish everyday at 36 years old that someone would have shared these things with me.
1) Credit cards are not your friend and they are dangerous. The reason that I warn on this is credit card companies push credit cards to college students so much today. It is so tempting to get caught up in the credit limit in front of you and live in the moment. Let me tell you why this is so dangerous and what you can do to prevent falling into the trap they have set for you. Credit cards are important and they can do one good thing for you, they can help you to begin to establish credit which is very important. Credit cards are however dangerous traps for young people because they present a solution financially in the moment but not necessarily a good one. Understanding what a credit card is and how it works are very important before you use one and my advice with credit cards is this, never keep a balance if you can help it. Always pay off your balance owed on your credit card and do not continue to add to the balance and just pay the minimum. Why you ask? Because if you do not pay off the balance that you have put on the credit card monthly you can end up paying far more than you planned for each item purchased due to interest. Consider this, if that combo meal you purchased at your favorite fast food chain was priced at $25 would you still buy it? Well of course not, but if you aren't careful with your credit card usage you can easily pay far more for every item purchased using your card because of interest owed on the balance each month. Be careful with credit and use it for emergencies or purchases that you can soon pay off the balance to prevent this from happening to you.
2) Pay your bills on time. Be aware of your due dates and the amounts owed and pay your bills on time. The reason that I say this is simple, not paying your bills on time is probably a new concept for you and yet your creditors do not care. They want their payments and there are consequences for not paying on time. One of those consequences is a lower credit score which you do not want because the credit score is extremely important in the future and even currently when you attempt to get a vehicle, an apartment and even some jobs. There are so many reasons that you do not want a low credit score because this will only cause you heartache and financial problems in the future.
3) Student loans are not free money. Student loans are very much like credit cards or any other type of loan. These are important for a lot of college students just getting started in college who often do not qualify for other assistance such as grants or scholarships, but they are dangerous if overused. Do not use student loans more than necessary when you are in college, and the reason is the rates are high and the time will come all too soon where you will be required to pay them back. Believe me when I say the time passes quickly between 18 and 30, you will see very quickly what I mean. I hope for your sake that when you graduate you are making such great money that paying off your student loans is not a challenge but that is often sadly not the case. Finding a job after graduating college can be hard especially if there are not enough jobs in your field.
3) Choose your college major wisely. Make sure that when you choose your major that you understand what type of jobs are available in this field and how easy it is to find job openings in this field. Do not pick a major based on just what you enjoy and hope you will find a job that fits your interests. This is poor planning if you proceed this way because you will graduate sooner than you think and where you will work is very important. If you graduate with no game plan you will often be left with the same options that you have now and very soon after you will be required to begin paying back those student loans. Do your research on what jobs are available in fields of interest to you and be wise about you decision of a major.
4) Start a 401k or start saving for retirement. You may or may not be working currently at a job but the majority of college student work at least part-time. Many jobs including part time jobs offer retirement plans called 401k plans or 403b. You are probably thinking to yourself this lady is crazy I do not have any money now and saving retirement is the least of my worries. However you will not be young forever and do you want to work when you are 70 or 80? Saving for retirement is so much more important than you think even at your age because every bit you save now builds up to put you on the right track for success. I have been told by some people put aside at least 3% of what you earn, if you are young starting out and you can only save 1% it is certainly better than nothing. Get started as soon as possible because you future self will thank you.I certainly hope that this helps you to understand, the importance of all these aspects of preparing for your financial future. I am hardly the person to show you how to do this except through my own mistakes which at 36 I now regret. Take my advice though friends and be proactive on these things today and you will be on your way to financial success in the future.
