Brother, think for a moment you are in college with a little pocket money in your pocket, and in front of you is the craze for a canteen pizza or a new phone. But suddenly the semester ends and the bank account is zero, Or the student loan bill comes and you lose your mind.
This scene happens with many college students, According to statistics 65% students say that they do not know how to manage money at all. The problem is that in school-college we teach trigonometry but no one tells us about budgeting or how to repay a loan.
Financial literacy for students is like a superhero power which can save you from the burden of debt and secure your future, In this article I will tell you the importance of financial literacy for students and how you can handle your money smartly.
Are you ready, Let’s learn some simple tricks.
What Is Financial Literacy And Why Is It A Key Life Skill?
Friend, what is financial literacy Simple, it is the skill to understand and manage money. Like how much will you spend, how much will you save or how will you pay the credit card bill.
Why is this a key life skill Because after college you will be standing on your feet rent, bills maybe loan EMIs. If you don’t know this you will be stressed about money.
For example, making a budget suppose you get Rs. 5000 as pocket money. If you spend Rs. 3000 for playing games on the phone, then what about the rest of the month?
Financial literacy examples include understanding budgeting, saving and loan interest. If you learn this, you will become the boss of your own money and will remain tension free in the future too, Develop this habit in college itself and your life will be set.
The Importance Of Financial Literacy For Young Adults
College time is that phase when you start taking control of your life, Because of this the importance of financial literacy for young adults is so big. Think you get Rs. 10,000 from your part-time job, but will you spend it all or save a little and create an emergency fund.
Financial literacy teaches you to decide this Or have you taken a student loan, If you don’t know the interest rate. then you will pay more money to the bank! Real example I had a friend he did shopping using the credit card,
But did not pay the bill on time and because of the interest he ended up with a bill of Rs. 20,000. Financial literacy for students saves you from such traps.
Plus, if you start saving or investing now you can plan for your dream bike or house by the time you turn 30 This skill makes you financially free.
Five Key Points Of Financial Literacy For Students
So, what were those 5 points of financial literacy? Here is a quick list that every student should know:
- Budgeting Make a plan for every month how much to spend, how much to save, You can use apps like Minutes.
- Saving Save some money and create an emergency fund Suppose, if your phone breaks don’t worry.
- Debt Management Pay your loan or credit card bill on time otherwise you will have to pay interest.
- Investing Put some savings in mutual funds, you will get big returns in future.
- Credit Score This is a number which is your financial report card Pay attention to it.
If you understand these, you will become a pro of your money Financial literacy for students means bringing these small things into your life Start small, like with a piggy bank, and you will see how your life looks sorted.
Advantages And Disadvantages Of Financial Literacy
What are the advantages and disadvantages of financial literacy, First advantages Financial literacy makes you the boss of your money. You will be saved from the burden of debt you will have savings for emergencies, and you can plan for the future.
For example, my friend Rohan makes a budget so he made the down payment of his bike early. Stress also reduces when you know where the money is going.
Disadvantages Yes, it requires a little hard work initially learning budgeting using apps. Sometimes the information may seem too much but once you understand it
it is a game changer There are so many advantages that this little hard work is worth it, You try it and see control of money will give you confidence.
Solutions:
Now the question is how to learn financial literacy, No stress there are some easy ways here First, check out free online resources financial literacy for students pdf like Khan Academy’s courses or videos on YouTube.
Secondly, there are financial workshops in college go to them. Thirdly try budgeting apps, like YNAB or Pocket Guard which will help you track expenses. Fourthly, talk to your parents or any senior learn from their money mistakes.
And last, start small – even if you save Rs. 500 every month, it is a big thing, The scope of financial literacy is great friend it covers loans, taxes and even investments Just a little hard work and you will become the hero of your money.
Opinion:
Can I say one thing Why is financial literacy important in students’ life, Because after college the money game starts in the real world and no one gives us preparation,
I believe that colleges should make financial literacy compulsory, There is a famous quote by Alan Greenspan The number one problem in today’s generation is the lack of financial literacy.
It’s true If you learn now how loan interest works or how budgeting is to be done you will be saved from the burden of debt in future. Along with coding and literature in college, money management should also be learnt.
This skill will set you right in life no stress, no mess. You also tell me why shouldn’t there be such a course.
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