The following is a guest post from Tisha Kulak, a writer for www.creditorweb.com, where she writes about student credit cards and responsible credit card use. Here she writes about college students and financial responsibility.
Ah”¦college life. Carefree years ““ full of promise. Good times and new friends are imminent. College is said to be some of the best years of your life. Well, while all of that may be true, college years can also be the most critical time of one’s financial future.
There are plenty of people who, now in retrospect, are apt to say “If I only knew” when asked about their credit and finances during their college years. Many people learned the hard way about what having bad credit in college means for their future. Leaving campus for the first time after graduation, the reality of credit hits”¦and hits hard! Landlords want a credit application completed and approved before you can rent an apartment. The banks and mortgage companies won’t sell you a house if you have bad credit. The new job you are applying for is full of potential and opportunities, but it because increasing standard for employers to require a credit check along with your resume and application.
What it all boils down to is your credit score becomes a measurement of your capability to be responsible. You build credit by making payments on time every month. As a college student, you are likely to still have less responsibility than others who are financially independent of their parents and families but that doesn’t mean you shouldn’t take your finances seriously while still a student. It is the prime time to start tracking your finances and spending habits. Begin establishing a budget for yourself no matter if your financial support is coming from your family or yourself. Sticking to a budget now will help ensure it sticks with you in life after college. Healthy financial habits developed as a student will help prevent the culture shock when graduation is over and real life begins.
You can also step up your responsibilities as a student by finding a part time job to fund your own spending. If you have a credit card or share one with your parents, start making the payments on time, every month. Start building a solid line of credit and a good credit score. Not only will you get an early lesson in managing your own money, you can implement a plan for your own future and also help ease any burden from your parents’ money concerns. It is never too early to start thinking about a financial future. While education is a top priority while attending college, the real world begins to present itself and young adults need to be ready to deal with it.
You have been itching to get the heck out of dodge ““ out from under the parental wings ““ but believe me, after a few months on the outside, you may be looking for a way back in. Preparing yourself now will save you a lot of grief later. Don’t fool yourself into thinking that the “free now-pay later” privilege will last long. It certainly won’t. It will all catch up to you eventually and when you are just starting out, you will face some major roadblocks.
While it is a great time in your life to experience new things, make it a priority that responsibilities and financial control is one experience you can get a handle on during your college years.
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