If we can go back to our time as students, we’ve probably all been guilty at one point or another of spending a little frivolously, or being somewhat irresponsible with our weekly budget. Unnecessary purchases can be fun in the short-term, after all. However, as we start to grow older and take more responsibility for our money, it’s important to develop good financial understanding to help us form the healthy habits that’ll set us up for a more stable future.
Starting to take money matters seriously whilst at college will give you a headstart on this pivotal aspect of growing up. In this post, we explore three ways you can do just that.
Use free resources on the internet
Fortunately, learning about money doesn’t have to cost the world. In fact, there are lots of ways you can quickly and easily broaden your understanding for free, when using the right tools. One simple thing you can do is sign up for free newsletters and magazines that can get sent straight to your inbox weekly or monthly. While you’re unlikely to read the articles word for word, there may just be a topic that piques your interest every now and then that you can go away and read around a little more.
Another useful tool you might not have considered is social media. Providing you’re following the right people – and aren’t seeking financial advice from the internet’s know-it-alls – these platforms can be an incredible resource. Not only will people be talking about general money matters in more digestible chunks, but the information you come across is likely to be relevant and up-to-date. While understanding the fundamentals of finance is important to helping you achieve your monetary goals, it’s equally crucial that you’re aware of what’s going on in the world around you, and how that will impact your money.
Take a finance-based course
If you’re serious about turning your interest in money into a career after graduation, you may be looking to enhance your knowledge by enrolling in a finance-based course. Being such a broad subject, you don’t necessarily have to do a finance degree to develop your understanding of the topic. There are lots of other related courses: marketing, business, accounting and economics will all cover key financial concepts.
Learning about the fundamentals of finance isn’t only helpful in an academic setting, but you’ll be able to take away some of the knowledge you learn and apply it to your own situation, hopefully promoting long-term financial stability. Of course, if you’re studying a completely different degree, you can still explore other part-time/shorter courses. There are a huge number of online courses and certifications available, generally run by universities and experts in the field – just make sure you research the options carefully so you can be sure the course you choose will actually be useful to you.
Take responsibility for your money
What better way to develop your understanding than by doing some real life practice? For most students, starting college will be the first time they’ve had total responsibility for where their money goes. Unfortunately, it’s all too easy to get carried away by student loans and the illusion of ‘free money’, and start to make some irresponsible decisions. On top of this, lots of students will make the conscious decision to ‘worry about it later’, and kick the can down the road when it comes to organising their finances. However, understanding your personal situation throughout university will help to set you up for success post-graduation.
There are lots of different ways you can get a better handle on your money from a young age. Firstly, it could be helpful to start building up your credit score. Ignoring this important aspect of personal finance could make it harder for you to get approved for credit further down the road, so it’s important to start forming good credit-building habits early on.
You’ll also want to think about your debt. The vast majority of students will graduate with some sort of debt, and while paying it all off doesn’t necessarily need to be your top priority, understanding the total you owe and the interest you’ll be paying will help you to organise your money better as you enter the world of work.
