Tue 23rd Oct, 2007
Start The School Year Right
Almost every student starts their school year with enough money to last the year. This money is usually borrowed. However, once students start the school year they forget how to budget, and that they must carry this debt for years.
Any bar in a university district will tell about friends who buy expensive rounds of drinks for all their friends, or shops who see the same students day after day buying clothes or shoes.
New friends, and peer pressure can make the most level-headed student careless with their money. Many students feel the pinch because they need friends. They need to recreate the network that helped them survive school.
Others are stepping out for the first time. Faced with the responsibility of being an adult, and the excitement of being independent for the first time, may young adults go punch-drunk.
This lasts for a month or two, then the reality hits. They look at their budget and realize that they won’t survive until spring unless they tighten their belts.
Student loans can take decades to repay. They can make it difficult to apply for a mortgage, own a home, and in some cases, many young adults claim that their student loans are preventing them from starting a family.
The best debt management program is a strong budget. The next is avoiding peer pressure and staying away from social situations where you may be encouraged to spend money, or to treat a whole table of friends.
Remember, it is possible to end the school year without acquiring more debt, or needing to ask your parents to take out a mortgage.