Being a student can be an exciting time. For many, it is their first taste of life away from home, and there are lots of new experiences waiting to be discovered.
However, it’s not all fun and parties. Students often struggle financially, which can leave them vulnerable to things such as pay day loans and credit card abuse.
Although this is not a major problem, some colleges and university’s have reported that a minority of their students are falling victim to these short-term and high interest loans.
So what can be done about this?
Ultimately, not a lot. Sure you can educate students as much as possible about the dangers of payday loans, but at the end of the day, as adults, they will end up doing what they want.
If you are a student and you want to avoid payday loans, by taking control of your finances and not running out of money all the time, then you should follow the tips below…
No matter how much income you get each month, it’s always a good idea to put a certain percentage away in a savings account. This covers you in the event of an emergency, and makes sure that you never have a need for payday loans or credit cards.
The main reason why students get themselves into financial trouble in the first place is because they don’t plan their finances. Consider setting up a monthly budget, where you keep track of all your income and expenses. This way, you should never be left short.
Cook from scratch
Food is a major expense for students, especially when the main diet is junk food and takeaways. The best way to drastically cut the amount you spend on food is by cooking from scratch. Buy all fresh ingredients and follow simple recipes to save yourself thousands of dollars a year.
A really great tip for students to save money is to buy the majority of items second-hand. For example, textbooks are often very expensive brand new, but when you buy them second-hand they only cost a fraction of the price.
Stay in more
Lastly, going out to bars and clubs can see like a lot of fun, but things quickly spiral out of control and if you are not careful this kind of lifestyle can leave a serious hole in your pocket.
Sure, going out once every week or so is not going to break the bank, but when it becomes a daily activity then you should start asking yourself if you can really afford it.