6 Financial Facts to Know Before Attending College

College is an expensive endeavor for anyone who decides to further their education. While it is necessary to spend money in order to get a college degree, there are a few tips that might help you save money and make the most of the money you have before you even step foot into your dorm room. Educating yourself on finances at a young age will better prepare you for the future and help you to be successful in your life.

Here are 6 financial facts to know before attending college.

1. Student Debt Can Be Minimized

Most people think that the only way to go to school is to take out loans and acquire a lot of debt to help pay for classes, books, room and board, your car, and all other expenses life throws at you. While this might be true to some degree, there are ways to make money while you are in school so you are not facing thousands upon thousands in student loan debt as soon as you walk across the stage at graduation. If you are able to maintain good grades, you can qualify for scholarships or other financial assistance programs that will cut down on your costs significantly – all of which your college counselor could talk to you about. At the end of the day, you need to remember that it was your decision to take out the loans and go back to school and no one forced you to do this, so be responsible and pay off your debt as soon as possible.

2. Meet My Best Friend, THE BUDGET

When you hear the word “budget”, all you want to do is roll your eyes and not think about it any longer. Budgets often have a negative connotation and can stress people out as they try to make the most of their money each month, but having a budget is a great way to stay on target and be responsible with your finances. A budget is something you make for yourself and you can adjust as needed. You are able to control how much you spend in each area and have the freedom to cut back or spend more where you need to. With a good budget in place, you can work towards your financial goals while you are still living your life and be spending your money.

3. Be Prepared To Make Sacrifices

In life, we can’t just go to the store and buy anything we want, eat out every single meal, purchase all of the subscription boxes we see online and still expect to have money in the bank account. In order to make good financial decisions, you need to be prepared to make sacrifices and cut back in various areas. Your bills always need to come first over frivolous spending. If you make these decisions into habits at a young age, when you are older you will be able to spend your money more freely.

4. Stay Away From Credit Cards

If you are needing to purchase new clothes, a new tv or even new furniture for your college dorm room or apartment, make sure you have the cash available to buy them. Taking out consumer debt will put you even further behind the 8ball and it will be even harder for you to pay off things as you are attending college. The more you use cash to make your payments, the better off you will be.

5. Invest Your Money

If you have a financial adviser, talk to him or her about investing your money as soon as you begin college. If you only have $10 to invest at the beginning, ask them to help you make that money grow and by the time you are done with school that money will be worth more than it was initially. If you are able to put aside money each month into your retirement or other savings accounts, this will help you start off your life after graduation on a positive note and will help you be able to have freedom from finances.

6. You Are The One In Charge

As you graduate high school and step into the world of college, you are now an adult and in charge of your own future. If you make good decisions, your future will be bright and money will not be a hurdle for you to jump over. Remembering who is in charge will help you as you fight the temptation to buy or save.

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