College is expensive!! College students need to be more informed than ever about the implications of paying for higher education. Making financial decisions like budgeting, taking out loans, credit or investing can be daunting and downright scary, and many college students feel ill-equipped to do so.
Basic Financial Concepts Students should know
When transitioning from high school to college, students should learn to budget, track spending habits and understand loans and how credit works. They need to understand the difference between a want and a need and that they can't spend what they don't have with the except of education. That is where budgeting really comes into play because if you're sticking to your budget, then you are working with the cash you have,
Students who decide to use a credit card in college should be clear on what the interest rate is, what their credit score is and be sure to make payments on time.
Understand Student Loans
Not all student loans are bad but students need to be aware of the different types of loans, repayment obligations and interest rates. Students and families need to plan early and have discussions around how they are going to pay for college before enrolling. To qualify for federal loans and other sources of financial aid such as scholarships, grants and work-study, students must first fill out the Free Applicaiton for Student Aid (FAFSA).
Financial Resources for Students
While on campus, students should visit their school's financial wellness office or financial aid office. Budgeting applications like Mint and banks have financial planning tools available online.
