I can’t save money
It is common for young adults to think it’s impossible to save money while they’re in college. They are in the middle of earning a degree, and at the same time realizing their newfound freedom comes with more bills and responsibility. However, saving in college is entirely possible. Learning how to manage your income and allocate a budget is essential in saving and spending wisely. When the time comes to graduate, know that it is possible to end your college career with hundreds or thousands of dollars in your savings account.
Money only comes from loans
Using loan money on things like shopping, food, and social activities is not a wise decision. In the end, loans can end up costing hundreds of dollars more due to interest payments that will accrue after graduation. If you’re looking for extra spending money, getting a part time job is a great way to gain experience and earn some extra cash. Also, it can build your resume and bank account!
I don’t need to build credit
If you don’t know what a credit score is, don’t worry, you are not alone. Many college students don’t understand what it is and why it is so important. A credit score is a number that is calculated from past loan/bill payments that determines the likeliness you will repay money borrowed in the future. In order to get auto loans, rent an apartment, mortgages, or even a job, the supplier needs to check this score to confirm you are a reliable source who will pay back the loan on time. The best way to build credit in college is by opening a low-balance credit card and paying it off every month—in full.
I can’t travel on a college budget
“You need to be rich to travel” is a common misconception in today’s world. The truth is, if you want to travel, you can. Students may not be able to afford to stay at a high-end luxury resort, but a camping trip in the mountains with friends is entirely possible. Getting a job and working hard to save money is going to be the key to seeing the world, and remember to never use your student loans or credit cards for trips you can’t afford.
Investing isn’t important
It is never too early to start investing. A small investment in something like a Roth IRA as a young adult will grow and become a larger and larger sum of money over time. Investing small amounts over a long period of time is much more effective than waiting until later in life to make one large investment.