Your college years generally set the tone for your entire adult life. During this period, the choices you make can either lead to lifelong stability or long years of financial insecurity. By following well-established principles, you can prove yourself an excellent steward of the resources you have been blessed with. While learning the basics of financial literacy is doable for just about anyone, this topic can seem like a tough nut to crack for the uninitiated.
Whether they are enrolled in college or entering adult life and considering their options, millennials enjoy many opportunities to take on debt. Well-intentioned or not, an enormous number of lenders present young adults with various forms of credit. Whether they have graduated or not, millions of young adults leave college life with significant debt levels. Depending on your level of financial literacy throughout this period, accepting lines of credit can cause you to sink or swim in life.
Unfortunately, far too many people are entering their adult lives with little understanding of finances. A 2012 report from the SEC found that the average Wall Street investor don’t understand basic concepts like compound interest and inflation. If this class of people needs to “hit the books” and develop financial literacy, how much more does the average college student need to take responsibility of their own finances?
Despite the unique challenges millennials face, members of this generation can access financial tools that were not available to their parents. Many resources, including personal finance software, calculators, budgeting apps, financial blogs and others offer insight, direction, tips and financial education that helps set you on a path to being financially responsible.
The TopTenReviews College Student Guide explores exactly how financial software can help students live within their means. It enables you to have a full, clear accounting of how you spend. You might be bleeding money in ways that are genuinely surprising. Once you know your problem areas, you can focus on how to improve them and be more efficient at how you spend your money each month.
Some might feel that saving is as simple as it is important, for others it is a difficult concept to keep. When we are prepared, we will not fear. As Joseph in Egypt clearly showed, saving is the cornerstone of wise living. What would have happened to Egypt if Joseph did not save? Even if it feels almost as hard as wringing water from a rock, it is important to set aside a percentage of your monthly income for emergencies. Find the method of saving that will work best for you. Maintaining the right kind of savings habit might cost you a little pain now; however forgetting to save can cost you a world of heartache when you are faced with an unforeseen crisis and a shortage of funds. With the many resources and tools available today, there is plenty of help and guidance to help you improve your understanding and your situation before it gets out of control.
Lessons in financial literacy can hit home powerfully when learned from others who share your Christian ideals and values. Get to know trusted mentors who have faced similar challenges and blazed their own trails towards peace and security. Learn how to be financially responsible and self-sufficient during your college years, and don’t put it off. With God’s help, you’ll discover that becoming financially literate is more than a chore; it is a journey of empowerment and self-discovery.
Jesse Woodhouse is a Team Lead at TopTenReviews. He is a proud husband and father and loves sports, music and the outdoors.