Reviews | Plan your finances, minimize your debt

0


As students who take different courses, complete different majors in different years with different faculty, student debt binds us together in a common financial planning experience.

College, besides being a time to grow, learn, and glimpse into adulthood, is a constant and boring battle with money. From buying textbooks to paying tuition fees, the money often seems to come out of our pockets. Many students are wondering how they can get some of that money back, or at least reduce the rate of mass exodus of their capital from their bank accounts.

The University offers several courses on the subject of personal financial planning financial literacy, such as ACE 240: Personal financial planning. In this course, students learn financial tactics used individually and for households; useful information for a student in any major.

By gaining this knowledge, students can benefit from many areas of finance, namely student loans and budgeting.

Many students take out loans to pay for their education, but few know exactly where their money is going. Understanding the benefits of different student loan payment plans and interest rates can guide students in choosing the right loan for them, saving them tons of money.

For example, a student who has money to pay off college loans during the school year because of work, savings, or family help might not have to worry as much about rates. higher interest than a student who knows he will repay. their student loans for many years after graduation.

Knowing about this financial strategy will allow the student to choose a loan despite having a lower credit score or a different payment plan, such as paying an initial amount versus monthly installments.

Our financial situations are unique; Knowing how to select loans suited to our individual finances can prove beneficial in the long run.

A second benefit of taking a financial planning course is learning how to budget. It’s easy to be wowed by the countless restaurants on Green Street. We frequent malls, stores, bookstore, buying little gifts here and there for friends, family or ourselves.

Budgeting keeps us from overspending. Applying this tactic to our spending habits when the biggest expenses of a lifetime, education, fall on us can help us pay off debt faster and achieve financial stability even after college.

Countless financial experts like Senator Elizabeth Warren have recommended the 50-30-20 budget system. This plan allocates fifty percent of after-tax income to necessities, thirty percent to needs and twenty percent to savings.

This budget system has proven to be popular because of its simplicity. A student who works 10 hours a week at an hourly wage of $ 10 after tax, who earns $ 400 a month, has $ 200 for his necessities, $ 120 for his needs and $ 80 for his savings. Easy.

Just seeing where exactly a student’s income is going makes it easy for students to understand how much money they can spend on what they want. In the aforementioned example, for example, the student could spend $ 30 per week on desires such as gifts from the new target, eating at Mia Za’s with friends, and much more while paying rent and paying off loans. .

As jobs become harder to find and businesses shut down due to COVID-19, financial planning becomes even more imperative to discuss. Therefore, taking a personal finance course is the perfect way to prepare yourself for financial success now and for years to come.

Chiara is a first year student at LAS.

[email protected]


Leave A Reply

Your email address will not be published.