14 Things Every STUDENT Should Know

14 Things Every STUDENT Should Know 

1.   You're Not Too Young to Save  Kids can and should have savings goals, even for retirement. A great personal finance book for kids suggests that kids should  set savings goals by age five or six. Then put some money in their pocket and watch them learn to make tough choices.

Should I buy a $1 pack of gum or save  for my long-term goals?   In high school, this means helping your child set medium-term savings goals. They can save money for their clothes, video game systems or cars.   However, high school students also need to save energy in the long run.

For example, you can set up a Roth IRA for children. This is a great way to teach them how to save money in the long run. And they don't have to spend money on retirement. They  also have the option to use it as a down payment on their first home.  

2. Compound interest is a nice  explanation that it can help a young person who doesn't like saving find the courage to save money. This calculator from Investor.gov can help you figure out how much your kids could earn from a Roth IRA  if they start saving right away.

  For example, start with $1000 and increase by $25 per month for 40 years. With a compound annual return on investment of 8%, your high school student could save about $100,000  before retiring.   You can show this  by taking interest from your parents' bank from a young age.

Consider saving one dollar each week for your child's wallet. It doesn't take long to see how the extra money can pile up faster than  they can put it in the bank  earning 0.01% APR.

   3.  Interest can bury you  On the other hand, don't forget to mention how  interest can put young people in debt.   Again, you can prove this problem to your parents' bank.

If your kids can't wait to make the next big savings, consider lending them  cash at high interest rates. This is safer than lending them money, but it  also shows how quickly interest rates affect them.  

14 Things Every STUDENT Should Know 

  4. You do not need to go into debt to go to university  Contrary to popular belief, university education does not require credit. Some colleges, such as Davidson College in Charlotte, NC work with students to ensure they don't go into debt while attending school. Other schools only provide quality education at a fraction of the cost of private schools.  

Students have many options for going debt-free to college: part-time, working while in school, choosing an expensive school, graduating early, and starting public school.   This does not mean that going debt-free to school  should be every student's goal. Sometimes student loans are worth the debt.

Student loan debt isn't all that bad if you get into a high-paying position within four or five years of high school. However, students should not see these expenses as a fact of university life. They should carefully consider all the money they have signed up to repay.  

 5. Universities are not created equal  Choosing the right school is important, but choosing the right department is even more important. Of course, high school students should follow their interests and skills when choosing a profession. But they  also need to know about current and  future business.  

A university degree alone is not enough to guarantee a decent job. This means that students should do as much research as possible to ensure their degree gets a good job.   One way to help students think about this is to have them train and shadow work throughout high school. Sometimes exposure to uncharted territory can lead to new feelings they never knew existed.

14 Things Every STUDENT Should Know 

  6. Everyone needs an emergency loan  When high school students leave home, they preferably need an unlimited emergency loan. For those of us who are more mature and have more financial management experience, a  line of credit can be very helpful in an emergency.

But for teens and twenties who are just starting to make money, it's important to have cash.   It's a good idea to help your high school student survive high school with a small emergency fund. This money can be used for emergency car repairs and other problems that may arise during college. 

 If you are worried that your  college student will use funds from a non-urgent account, consider a signature code that will give you access to their account information. Or at least make  a shared account that you can monitor. Put someone else in charge of your spending and think twice before using your debit card.

  7. Cars Are Bad Investments  Buying a car may be the first big financial decision a high school student makes. Most high school students prefer high-end SUVs or luxury cars.   But cars are assets that lose value (rapidly). Cars are not a good investment. High school students should make an effort to buy cars with money, even if it means walking around the perpetrators. 

 If you haven't mentioned paying interest, now is the time to buy a car. Some students may really need a car to manage work or participate in extracurricular activities. This is good. However, getting an interest-bearing loan for your car should be a last resort.  

 8. Comparing yourself to others can ruin your life  It is human nature to want what your neighbors have and to be like others. Wanting to be good isn't all that bad. But letting other people guide our financial choices is a slippery slope, especially if those choices involve spending too much money in our way.

  Teenagers try to fit in with their peers, so they care about what others think. That's why teaching this lesson can be difficult. But if a teen can get over the urge to act now, they will make  better financial choices in the future.   Again, you can ask your high school students to try to adapt so that it is a good lesson.

For example, if you usually spend $250 on back-to-school clothes, give that to your kids. Just make them understand that you won't be there to save them. If they spend $125 of their $250 on a good-looking pair of expensive jeans, they'll be able to use the rest to cover their back-to-school needs this year. If they need to dive into their own money or be happy to "have", so be it.   

14 Things Every STUDENT Should Know 

 9. Financial institutions can sell your property  Students and the rest of us, it's easy to think that banks and lenders are our friends, especially when students want to finance their higher education.   But the truth is, financial institutions exist to make money.

 They make money by selling financial products. This does not mean that students should avoid dealing with financial institutions. It just means they have to be skilled to do just that. 

 This is one of the most important conversations you should have before your student enters college. The college event was filled with booths from  local banks and major credit card companies selling their wares. Again, the product doesn't have to be bad. However, students can earn more credits from the work they did before starting college.  

10. Spending doesn't have to be responsible  Most adults hate the word budget, and many teens don't even consider living on a budget. If they think like that, they may think that saving money means not buying clothes, not going to the movies, not spending money.   But just because it's cheap doesn't mean it's useless.

 It's about managing your money to achieve your financial goals. Students who understand this and  start budgeting  in high school will be prepared for a lifetime of  happiness and financial success.   High school is  the best time for young people to learn about finance.

You can give them that power by sending them more money than you would spend. For example, have  them check their lunch money. If they can't make money by Wednesday for weeks, they quickly learn to spend their weekly money to avoid starving or bringing PB&J from home.  

 11. Not all debts are bad  A few generations ago, people weren't in debt. Many of our grandparents probably bought their homes with cash. Living a debt-free life is not always possible, or even necessary, these days.

  High school students need to know how to avoid the most expensive debts: long-term student loans, low-cost car loans, subprime loans and more. But they also need to understand when to use debt and how to manage it effectively.   One way to help them find this balance is to learn how they want to live each day.

 They can look at current mortgage rates and mortgage rates and calculate the cost of buying a responsible home. Next, talk about why credit card debt is not a bad thing and even how they  use credit cards to achieve good financial results.  

12. Credit Score Matters  As I mentioned above, it is difficult, if not impossible, to live without debt today. People can rarely afford their homes debt-free. Therefore, students should learn  about their credit scores early, including how to manage them.   Again, you can help them by contacting them early.

 When your child gets his first student loan, he gets a credit report and scores to follow. Talk about what  good credit is and how to maintain good credit.   You can go even further by giving your child a secure credit card. All of these require a deposit, so there are no immediate consequences for not paying.

But it can help them build  credit over time. Keeping an eye on their credit scores while doing this is a great way to encourage them to build credit in the future. 

14 Things Every STUDENT Should Know 

  13. Needs money to live - a lot  Most young people do not know how much money is needed to cover the  costs of living at home. Why are they doing this? It's not like they take all your groceries, pay your mortgage, or pay your insurance.   The problem is that the lack of knowledge will make young people feel discouraged when they go out alone.

You can help  your high school student prepare for the real cost of living by including them in  your home budget, asking them to do their grocery shopping, or asking them to pay for their own car insurance.   It is a good option  to try with fake money. Talk to your kids about the life they want to live someday.

Find out the income and costs where they want to be. Then give them the game results of a month's salary. Create a budget for them to cover basic expenses such as rent or  mortgage, groceries, student loans and car payments. When they see what is left, they will know how valuable the old person is.

14. Money Isn't Everything  High school students can easily get caught up in dreams of big houses, luxury cars, and summer vacations when they get high-paying jobs. But remember to teach your students that money isn't everything. 

 This comes into play when students choose a major college. Yes, high school students should choose a major that will help them find employment. But they shouldn't choose high jobs, high jobs for the money. There needs to be balance, and you can best teach this lesson  by showing it in your  life.

14 Things Every STUDENT Should Know 

FREQUENTLY ASKED QUESTIONS

    What are the financial conditions?

   Finance includes the creation and monitoring of business, spending or debt, credit, capital markets, finance, investment and  financial systems. Fundamental financial concepts are based on microeconomic and macroeconomic theory. 

 Why is finance  important?

 It provides companies with the capital they need to start, operate and expand their businesses. Without adequate funds, businesses cannot afford the resources necessary to maintain day-to-day operations such as employees, equipment or supplies.

  What is the concept of money? 

 finance, is the process of raising money or capital for any  expenditure. It is the process of bringing any kind of money in the form of  loans, credits or  capital investments to the business entities that  need  or can use the most money.

ASHISH PRAKASH,

WRITER, BLOGGER