4 Major Financial Lessons to Learn During College
Finance, the word cannot be taken lightly when it comes to real life scenarios, because real life isn’t a monopoly game where you can play with the paper currencies. And managing the finance isn’t some etiquette that develops within you as the time passes by; this is something that needs to teach or taken into notice while a person is young. This blog is focused on educating young people about the significance of financial management, and also provides some tips and solutions to save, budget and also to invest the money on the right thing College.
Know How the Credit Cards and the Interest Rates Work
Since it has been legalized to everyone that they can get their own credit cards at the age of 18, it seems a right idea to teach the college student about the money management and also about the complexities of the credits. There is a lot of people end up with a huge amount of credit scores at a very tender age; the problem is most of them doesn’t even have a right understanding of how the credit works, calculating the right interest is one of the key factors.
How to Balance a Checkbook?
While it is evident that in many places writing a check for the bills is considered quite an old school, it is still worth for the young people to learn to balance a checkbook. This will be helpful even if they are sticking to the credit and debit cards, they could really benefit from what they have learned to manage their cash flow and the overflow of the debts in order to avoid the fees of overdraft. Balancing a checkbook is an art as many seem to fail in managing this because in some places you need to write the check.
Basics of Budgeting
This needs no introduction as many people come across this term often, it is one of the most important skills that anyone should learn, yet you’ll don’t often get a chance to learn about it in your college days. Unfortunately, not paying attention to learn budgeting will seriously land you up somewhere where you end up in a lot of problems. In order to ease up the task there are a lot of software applications available on the internet, for instance, Google ‘tally GST software’ and you will get to know about a lot of budgeting software applications.
And this is the right time to learn to budget as soon you’re about to move out and you are on your own. The learning of budgeting includes planning and paying the bills for rent, insurance, utilities, and car payments and also making sure that there is enough money left in your bank for groceries and also in the savings.
The Power of Compound Interest
Everyone knows about the power of saving the money, but do you know about the power of compound interest? One of the greatest potentials for young people is their time, in the contest the number of years they have got. When you deposit money in the bank in a normal savings account then you would get a low amount of interest for the principal amount, whereas if you go for a recurring account then it will increase the chances of saving a lot of money. Even depositing a small amount for a particular amount of time will make a huge difference.
Know the Basics of the Stock Market Investment
Being a financial planner, many people mostly adults who are struggling to put their finances together need to learn the functioning of the stock markets. The stock market is also known as share market, is an aggregation of the stocks (shares) that represents ownership of a business that is partially or wholly. The stock exchanges list the shares of the common equity along with other security types like convertible and corporate bonds. Once you have grasped the basics of the share market then you can make a lot of money from this, all you need is to have some statistical ability and experience to predict the shares based on their previous activities.
The Bottom Line
The personal finance is something that is a much important part of life and it is unbelievable that this isn’t taught in colleges and schools. If you ponder about it makes a lot of sense that why many households are having a high level of debts in all-time high. It is simple as that, when people don’t know anything better then they don’t do anything better. Now is the high time for everyone to make a positive difference in the lives of students by making them finance their futures, this can be done by teaching them the basics of the finances at their schools and colleges.