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Personal Finance Tips for Young Students

Unfortunately, personal finance management has not become a compulsory topic in course curriculum of college or high school yet. So most of the young adults remain almost clueless on how to manage their money when they out in the nasty financial world for the very first time. If you are a youngster and you think that managing your finances is extremely difficult then you are completely wrong. The only thing it requires to get started on right path is the eagerness to do a bit of research and you don’t need to be very good at math. In order to assist you in getting started we have listed some vital things to know about personal finance if you aspire to live a prosperous and comfortable life.

Have a Self Control

In case you are lucky, your parents may have taught you this important skill of self control when you were in school. If not, then sooner you discover the art of self control, the easier you will find to manage your finances in proper order. Though you may get tempted to buy any item on credit at the moment you see it but it is always better to wait until you accumulate the exact amount of money. If you don’t learn techniques to manage your financials then some other people will find way to exploit opportunity by mismanaging your money. Most of these individuals are nothing but unscrupulous financial advisors who intend to earn heavy commissions on your investments.

Contribute for Emergency Fund

No matter, how much you have to contribute towards credit card debt or student loans, it always recommended to save some part of the income amount for emergency fund each month. Having decent amount of money to use in case of emergency will help you to get rid of financial troubles and you don’t have to worry about your rainy days. If you get used to the habit of saving significant amount of money towards emergency fund every month then very soon you will have money for vacation, retirement or home down payment.

Understand your Tax Liabilities

It is extremely essential to learn how income taxes work well before you obtain your first salary check. When your employer provides you a salary, you have to do some important calculations to figure out how much income you will have after paying taxes in order to meet your financial obligations. Fortunately, there are several online calculators available which helps you to determine your payroll taxes and estimate exact figures of your gross pay.

Learn How to Bargain

If you want to save some amount of money while meeting your luxurious needs then you have to learn how to bargain. If you are successful in learning some important bargain tactics while shopping then you can definitely purchase items at very low price. Before buying anything, you can also check out whether any special discounts or coupon schemes are available which can help you to fetch most profitable deals.

Keep your Financial Information Secure

Be extra cautious when giving out your financial information such as bank account, credit card details and Social Security Number over online or phone until you check authenticity of other party. Monitor your account properly and report to service provider immediately if you come to know any unauthorized or suspicious purchases from your account. In case, you think that your identity has been stolen by someone then get in touch with local police department immediately.

Start Saving for Retirement

Just as your parents sent you to kindergarten in a hope that you will prepare yourself in advance to face the competition when you get into school, you have to prepare for retirement well in advance. The way concept of compound interest works, the earlier you begin saving, the lesser principal amount you have to invest in order to accumulate the sufficient funds for your retirement.

Take Scholarships/Grants more seriously

Do yourself some favor and confirm with financial aid department of your school or college to see what scholarships and grants available for you. You can also do some quick research online in order to figure out the eligibility criteria of these scholarships/Grants. There are various companies available in the market, which claim that they will help you to obtain scholarships or grants and charge you some fees in order to do so. Before taking help from such companies, make sure you check the credibility of such companies and try to search for solution on your own.

User your Credit Judiciously

If used wisely, credit can be extremely helpful; if not then credit can incur an enormous financial burden on you. No matter what kind of credit card or loan you are applying for, understand all the terms and conditions thoroughly. Realize the implications of missing a bill payment or making late payments. Know all the ins and outs related with credit report and its implications on your credit score. Because your credit score plays vital role in deciding whether you will be eligible for future loans or mortgages or not?

Conclusion:

Heading off to school or college is an important gateway and exciting time for young students to become financially independent. Young student suffer from lot of financial heat because of their poor personal finance management. Remember you don’t need any special background or costly degrees to become expert in managing your finances. Learning personal finance management is long term journey and it is never too let to start. If you stick to all the above discussed personal financial rules in your life then you can become financially prosperous as equal to guy with a MBA degree in Finance.





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