Finances can be a very daunting part of growing up for any young adult, but there are some tips and basic knowledge that can make this responsibility easier.
Advice on budgeting, credit and other aspects will be the focus of a financial wellness seminar for students hosted today from 1 to 3 p.m. in Classroom Building room 144.
Financial wellness includes knowing how to manage personal finances, budget, repay loans and save for retirement. Though upon graduating students may be making a steady income, following graduation there are a variety of expenses that will begin to—rent, utilities, insurance, payback of loans and general costs of living. Financial wellness skills can help alleviate the stress of adult financial responsibilities.
One of the most important aspects of finances is a budget, which may be simple to create but difficult to stick to. Creating a budget allows people to evaluate the money they spend on a monthly basis, change their spending habits and save more.
Budgeting for many allows people to reach their financial goals of travel or purchasing their first home much faster than those who do not create or follow their budgets. This is especially critical since easy access to money, like through credit, makes the temptation for overspending on nonessentials much higher than it once was, according to TheBalance.com.
Another very important aspect of finances is to maintain a good credit score. The idea of a credit score and decisions made in your early 20s impacting the rest of your life can seem daunting to students and recent grads.
To build and maintain a good credit score, people should always pay their cards and loans on time, avoid using a credit card if they do not or cannot pay the bill and be careful and do their research before opening a credit card account, according to MoneyCrashers.com.
Despite its pitfalls, credit can also be helpful and may even be required for future purchases like a mortgage loan. If maintained well, credit can only positively impact your life in the future.
For many upon graduating the most intimidating and immediate financial need is paying back any student loans. Most payment plans span over a 10-year period for student loans, unless the student opted or qualified for a different payment option. Many federal loans offer the ability to change the date, amount or even plan if you find yourself having a hard time making the payments.
While growing up might be seen as a stressful
task due mostly to the finance responsibilities that are suddenly thrust upon
you, there are ways that you can avoid or lessen the stress that so many people
seem to find themselves wrapped up in. From budgeting to basic research on
credit cards and so much more, there are ways that you can ensure your finance
security for your future.
