Fortune has listed seven tips for students on personal finance
Fortune magazine has published seven recommendations for college students on managing their personal finances while in school. The experts cited by the magazine advise students to start building credit, create a budget, build savings, and plan ahead for repaying student loans.
In particular, Courtney Alev, a financial consumer protection specialist at Credit Karma, recommends that students who are just starting to use credit cards consider secured or student credit cards. She emphasizes that students should only spend what they can afford to pay back each month. In the U.S., credit scores are based on credit history and can affect the terms of loans, rental agreements, and other financial services.
Sarah Wilson, Director of Innovative Products at Student Connections, defined budgeting as a plan for using money to achieve personal goals. Financial therapist Lindsey Bryan-Podwin advised that, for those with irregular income, monthly bills should be divided into four parts, and the corresponding amount should be set aside each week. For example, for a rent of $1,000, the weekly reserve would be $250.
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Experts also recommend building an emergency fund before you start investing, so you’ll have enough to cover rent and other basic needs for several months. Students, in particular, are encouraged to openly discuss their financial limits with friends to avoid spending beyond their means.
Regarding student loans, Wilson advises students to keep track of their borrowing amount for each semester, the expected total repayment amount, and the future monthly payment amount while still in school. Phil Schuman, Executive Director of the Higher Education Financial Wellness Alliance, also urged students to take advantage of universities’ free resources on financial aid and budgeting and not to panic over mistakes in managing their finances.
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