When I first started college I was pretty much clueless (some will say I’m still lost). I was clueless when it came to personal finance and studying. I had no guidance and I sort of just went with the flow. I wasn’t sure of what I was doing. I didn’t know if what I was doing was even worth doing. Over the years I eventually figured out a few things.
I challenged a few pieces of conventional wisdom. I decides to stand out in the crowd. I decided to do things differently.
Today I wanted to look at financial myths that all college students need to not only challenge, but slap right across the face. These are myths that will only hold you back in your 20s. Do you want to be held back? I didn’t think so.
What are some financial myths that college students need to stop believing?
Myth 1– You need to pay for college with student loans.
Do you need to borrow money for college? ABSOLUTELY NOT.
The biggest financial myth in college is that you need to borrow money to cover the costs of your education. This is not true. I avoided student loans at all costs. The last thing I wanted was any student debt to be holding me back.
How can you pay for college?
- Working full-time.
- Taking time off to work.
- Working in the summer.
As you can tell, all of these ideas are rather extensive and deserve their own blog post (in the future). For now I just wanted to throw these options out so that you know that you don’t have to turn to student loans.
Myth 2– There’s no point in saving money in college because you’re not making real money.
That’s another load of crap that students believe in. Saving money isn’t just for the rich. The rich make lots of money. The middle class make a little bit of money, but they focus more on saving money and building wealth over time.
The best habit that you can develop in college is to learn how to save a little bit of money. I started off by saving $20 a week. I quickly realized that this would give me just over $1,000 per year. Then I got instantly hooked. If you start saving little by little, you’ll be pleasantly surprised by how much money you can have in your bank account over the span of four years.
You can graduate in debt or you can finish college with some serious savings. The choice is yours.
Myth 3– You can just chill out in college.
While I support the idea of having fun in college, I’m not a fan of just chilling out. College is supposed to be fun. College is supposed to be a great time in life. That doesn’t mean that you have to spend all of your time doing nothing in college. You have so much energy and youth on your side, that you pretty much should feel invincible all of the time.
College is the best time to start a business. It’s also the best time to make some major moves that will shape the rest of your life. You can still party on the weekends. You don’t have to chill out every single day. There’s a lot that you can accomplish with your plethora of energy in your early-20s.
Those are financial myths that college students need to stop believing. If you challenge these three myths, you’ll be far and above away from the rest of the group. You’ll have more money than ever before and you’ll be much happier in your mid-20s.
Did I miss out on any finance-related myths?