COMMON PERSONAL FINANCIAL PLANNING MISTAKES STUDENTS AND FRESH GRADUATES MAKE

Topics: Finance, Debt, Investment Pages: 4 (1205 words) Published: March 2, 2015
COMMON PERSONAL FINANCIAL PLANNING MISTAKES STUDENTS AND FRESH GRADUATES MAKE Students are at school for education. However, school normally does not teach what the real world actually teaches. For instance, school often misses it when it comes to teaching personal finance. Even students majoring in accounting, finance or economics might not grasp personal financial planning well. There are some common personal financial planning mistakes students make: 1. Overuse of credit cards

When students are not with parents, they find credit cards the main source for making purchases. They make all kinds of purchases from food and entertainment to shopping and books. Since it is just a swipe of credit cards in order to spend, they do not realize that they are starting to accumulate debts. It may be too late for students to realize when the huge amount of credit card debts and the interest rates have become a burden. (Good Financial Cents, 2010) 2. Budgeting ignorance

Students have not had the need for budgeting practice since they get pocket money from their parents. When they grow up, they do not have a proper idea of income and expenses. This may result them to have piled up debts since they are lacking of budgeting idea. (Good Financial Cents, 2010) 3. Overspending

If students are not responsible for their purchases and do not spend wisely. For instance, heading out to bars frequently, eating out regularly, often doing unnecessary spending, it may add up their debt amounts. (Good Financial Cents, 2010) 4. Not making use of college cost cutters

One of the advantageous benefits students can always enjoy is student discounts. It is a good way to reduce expenses. If students do not make use of this great opportunity, it can be a costly mistake. Things like a part-time job, work study, student discounts, textbook trading or resale, having a roommate, campus freebies, and similar items can help a student keep costs down. (Good Financial Cents, 2010) 5. Wasted holidays...
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