Info about Financing
Bad financial habits of students – and how to fix them
Student days are supposed to be the best of your life, but they can be crippled by the thought of the heavy financial burden that will face them when they graduate. The simplest solution is to not get into those situations in the first place. Now we all know that the reality is that you will most likely have to get a student grant to get you through the rough bits, but that’s about all.
In fact the worse debts are those that are not related to the course at all. Let’s identify 2 of them.
Never having learnt the value of money
Many kids who go off to university or college do so with the blessing of mum and dads bank account. They have lived at home for a long time. And don’t go telling me that they have had a job: I know that they have had a job, the problem is that they haven’t had a job that they have had to spend more from the earnings than perhaps a car, going out, friends parties, and a minimal amount to the household. Parents are too soft. My parents started out in a flat with a box for a mirror. But when I got to leaving home age we had a lovely house. I never knew what it was to live basic. It took a while to get used to. Thankfully I did, and I was launched into the reality of life and lower income by a gap year. But what do the kids do when they are faced with having to make ends meet?
Mums and dads who use the credit cards too much
Students can jump to the credit card saftey net all too easily. I did. Now my mum and dad used their credit card but paid it off at the end of each month. I just used the card. And that is what students all too easily do. They get faced at freshers day with all these great offers that they can take on. They get free t-shirts for getting a card! They get unrealistic limits that are way over what they can pay back.
Sadly, most students graduate with a hefty loan to pay back, as well as store cards and credit cards, and it can be crippling. The best way of handling it is to get used to using something like small business accounting software (if they like reports and things), or even looking out for the best home accounting software packages that will suit their needs. If they don’t, and don’t get used to handling money, then they could be facing an exciting career with and axe to their necks.