Kachelle Pratcher
Staff Writer
The rising cost of obtaining a higher education has left many students with the need to borrow heavily from financial institutions to fund their educational endeavors. However, the reckless spending of refund money from these loans and other student financial aid funds can lead to long-term financial debt and irresponsible spending habits that will follow these students for life.
Some students feel that their peers spend significant amounts of money on things that they can do without.
“They’re not just spending money on clothes and gadgets alone, but spending money on entertainment. You can’t afford to go to the movies, club, and restaurants every night, sometimes you have to take advantage of free resources on campus,” said Knesha Thomas, a senior accounting major from Anguilla, Miss.
According to scholarships.com, where and how you choose to spend your money is your personal decision. The keys to developing strong money management skills are to understand your spending, live within your means and to be sure that you have sufficient resources in the event of an emergency.
Jordan Barber, a junior computer engineering major from Baltimore, Md., believes many students spend refund money recklessly in an attempt to fit in.
“Most students want to keep up with the appearance of others. It’s almost as if they are making the wants of others into their own, just to be accepted,” said Barber.
Dominique Marshall, a junior atmospheric science and meteorology major from Jackson, Tenn., encourages her peers to ask for help when in doubt about managing their money.
“I think students should create a budget to better manage their money during refund season. Seeing that the business office gives us plenty of time to think about it, you can always ask an advisor for help with learning how to save,” said Marshall.
In a U.S. News report, “How to Manage Student Loans or Avoid Them Altogether,” financial experts give these tips to college students:
• Get a head start, no matter how small: Save money now! Every dollar you save is a dollar you won’t have to borrow. For many students, a student loan is the first debt they will owe, and it’s hard for them to visualize what that will mean when the borrowing phase is over and the repayment phase has begun.
• Prioritize your expenses – College expenses tend to fall into two major categories: education and experiences. Expenses that are tied directly to a college education include things like tuition, required fees, and books. Experience costs are the extras: living on campus, studying abroad, and being a member of a sorority or fraternity, for instance.
• Choose an affordable school: Whether this means choosing the school with the lowest ticket price or the school with the most scholarship money.
• Cover as many smaller expenses as possible: Consider footing the bill for books, supplies, honor societies, and various fees.
College students should always keep in mind that the real world is awaiting once they cross the stage and the money they borrowed to fund their education will be due.
Be First to Comment