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5 Money Matters You Will Never Learn in College

One study found that the average college student can only answer a third of fundamental financial questions correctly. Although the youngest millennials may not yet pay their own bills or have a full time job, itق€™s not true that their financial behavior and knowledge doesnق€™t matter. The truth is that a personق€™s college years are an essential time to develop savvy financial habits and a good credit history to ensure that they build up wealth over their lifetime. Here are five money matters that you likely wonق€™t hear in college, but are pertinent to a happy and successful financial future.

1. آ Student Loans Donق€™t Need to Control Life

Student loan debt can be overwhelming, which causes many students to delay major life events such as buying a house or getting married. However, taking the time to become educated on your options before taking out student loans and once you graduate will make a huge difference when it comes to your freedom in choosing the career you want. The truth is that borrowing money for your education shouldnق€™t make you feel like you have to go on a life path or career that youق€™re not passionate about.

2. آ No Need to Rack Up Debt to Build Credit

Many US citizens struggle with credit card debt and millennials are no exception. In fact, the average college graduate has over $4,000 worth of credit card debt. However, this problem often overshadows another–students are not always educated on the pertinence of building a solid credit history. One survey found that over 60 percent of college students think that you can build credit by paying for things with debit cards. However, the only way to establish a good credit score is to use credit. That doesn’t mean students need to go into debt to establish credit, asآ they will build creditآ by paying off a basic card each month.

3. آ Take Advantage of Retirement Money

Although retirement likely feels like a lifetime away for a college student, itق€™s never too soon to start saving up. The secret to establishing and maintaining a savings plan is to begin with a reachable dollar amount that you can put away every month. When doing so becomes comfortable, increase the contribution. Youق€™ll be able to put away a substantial amount in a short amount of time. This is especially the case if your employer gives you a 401(k) plan and matches the contributions for it. Make sure that you take advantage of this, as company matches are pretty much free money.

4. آ Better Health Leads to More Wealth

You likely already know that a healthy diet and exercise plan is good for your longevity and looks. However, what you likely donق€™t know is that having healthy habits also contributes to more wealth. To begin with, consuming too many unhealthy beverages and foods burns a hole in your wallet. For instance, if you cut back on alcohol, you could potentially save hundreds each year. Additionally, learning how to cook in your dorm, apartment, or home kitchen can save you both cash and calories and will allow you to establish smart choices into adulthood.

5. آ Money Management is Key

Managing money doesnق€™t always come easily to people. Luckily, there are plenty of online tools that college students can use to help them get accustomed to keeping track of their finances. Many will categorize credit card and debit transactions so that you can see just how much youق€™ve spent on various categories such as groceries, entertainment, restaurants. It will also allow you to see what categories you need to start cutting back on in order to save money.