Two words that are common among undergraduates all over the country – student debt – daunt and haunt young millennials. Older millennials are still working through their student loans due to the Great Recession. Witnessing the struggle of the older members of their generation, current college students fear to experience the same fate in the future.
But there are ways to be prepared during a financial breakdown, and that is the art of being financially smart. According to PatriotBank, having strict financial habits and being money smart can secure financial future, which can even save you from an economic decline like the Great Recession.
Controlled Amount of Fun
You’re likely to spend more time doing things outside the classroom than study because college has many experiences and opportunities to offer. But if you’re planning to spare yourself from future student loan burdens, you have to look at the way you’re going about your experiences in another way. Make sure that you’re not flushing money down the drain with your expenditures.
The temptation of purchases will always be there, and it might be hard to resist the urge to buy a stash of Aeropostale apparel to wear the entire school year or to go to a favorite band’s concert. So instead of entirely avoiding temptation, look at other ways of spending that will cost you less. Why not try the vicinity’s thrift stores or support local businesses and artists?
While on the topic of controlling urges, you should also slow down on your credit card expenditure. One efficient way to financial independence is building your credit score. But if you’re always maxing out your credit card, your bills can potentially add to your student loan burden. Experts recommend only using 30% of your credit card’s limit, and the lower, the better.
Look No Further and Farther
Most students don’t familiarize themselves with the full benefits of their schools, especially when it comes to financial aid. Knowing what your university can offer helps you ease your student loans. Ask your school authorities about their different loaning programs, study each, and figure out which suits you.
You can also act on your future by building up on your resume. After all, the primary means of paying for student debt will be your job. Look for internship and job opportunities on your campus to get an early start on your resume.
Solving student loan blues is a combination of action and control. With these two hand in hand, all the rest will follow. You will attain financial independence and have money available within your reach when you need it.