5 Financial Concepts: Any college student who wants to successfully navigate the challenges of managing their personal finances and ensure a stable financial future must possess the critical skill of financial literacy. In this article, we will tell you about 5 financial concepts that you must know about if you are a college student.
5 Financial Concepts That Every College Student Should Know
1. Stock Market
It’s not always necessary to take a big risk while investing in stocks. Start off with exchange-traded funds (ETFs) or blue-chip equities. By limiting risk, these opportunities expose investors to a variety of sectors.
2. Work if you can
One of the best ways to improve your financial security and time management abilities is to work part-time. Part-time occupations pay between ₹5,000 and ₹15,000 per month.
3. Always have a budget
Not only is keeping track of spending important when creating a thorough budget, but it also involves creating a financial roadmap. Set aside some money each month for savings and investing; this amount is usually 20%. Set aside a suitable amount for fun and recreation and divide your budget into categories such as housing, transportation, and study supplies.
4. Always have an emergency fund
An emergency fund serves as a safety net, offering financial stability in the event of unforeseen circumstances such as auto repairs or medical emergencies. You can stay out of debt when unanticipated costs come up by creating and keeping an emergency fund.
5. Know about finances
Arm yourself with knowledge about finances. Take part in workshops, look at internet resources, and have conversations on personal finance.