Students in the UK and around the world are struggling with finances. Such a miserable and vulnerable situation in their prime age is affecting their prospects. Young people are looking at ways out. But without reforms and proper safety nets being set by the government, change is impossible.
But some financial experts say the reasons behind this financial misery have more to do with the attitudes of students than government policies. Down below we will discuss some major reasons for the financial hardships of students.
Not Taking Advantage Of Financial Aid
This sounds stupid but some students do not put enough effort when applying for their financial aid at the university. The financial aid application has a separate section on most university portals.
Considering most students are coming from households that can not cover the full cost of their education, financial aid is the best option for funding their education. It will cover most of their expenses and keep them away from the debt trap of student loans.
But the financial aid application requires a student to gather a plethora of documents. This is an intensive task to do and most students do not give their full effort. The university mostly rejects applications that do not provide solid proof thus leaving students with the option of getting education loans.
Not Creating A Budget
Modern school education has failed to teach young people basic life skills such as budgeting. They have to learn these skills themselves and as a result, most of them are unaware of them. Students are not budgeting their finances, this is leading them to run out of money or seeking help from their parents.
Most students start working part-time from the age of 13. If they are educated and made aware of how they can budget the money they have earned, it can be beneficial for them. They can save money for higher education and survive on their own.
Wants Vs Needs
As stated above that most students can start working part-time from the age of 13, they need to know the difference between a want and a need. Most children are allowed to spend their money as they want which is their right but if we can teach them to control their spending habits. It will only help them in the long run.
If you are a student in university struggling to make ends meet and barely surviving by the end of the month you can easily borrow £50. And you can pay this amount on your next payday.
Credit Card Use
Credit card use is a topic of endless debate. It has many advantages if used sensibly and can become a credit nightmare as well. The use of credit cards by students can help them build a good credit history. All you need to do is to spend an amount that you can pay back and get the most essential things when using your card.
But the problem starts when students get a credit card because of its perks. These kinds of cards charge a higher premium plus they have a higher penalty if you miss a payment. The abuse of credit cards has made countless young people get a bad credit score which makes it harder for them to get financing for houses or businesses.