Debt. That is what 70 percent of students who graduate, have to deal with according to MarketWatch. Debt has increased over the years because more and more individuals strive to accomplish their dream and goals. Moreover, Student Loan Hero says that approximately 44.2 million Americans are in student debt. Many students are unaware how tremendous this issue is, and how it can have a significant impact on your future. In addition, a numerous number of students are lost and don’t know how to prevent this from happening to them. However, there is a solution…Financial Literacy! This is important to college students like me because it can prevent them from losing money, help teach them budgeting, and overall help students choose the right decisions …show more content…
Many students are unaware how to budget. Some, even find it troublesome to budget because they hate having to decrease on the things they enjoy. A majority of people feed their wants and their desires rather than evaluating their needs. For instance, a high issue in college students is that they enjoy going out to parties spending loads of money on drinks rather than saving that money to pay for their housing or school supplies. That’s why financial literacy is important because it teaches students to sit down and evaluate where their money should exactly go. In addition, it will allow them to examine how they will spend in each criterion such as schooling, housing, transportation, and fun. By providing students with knowledge about money, they will able to productively consider how much they will be spending in various places and deciding which factors are the most beneficial. In addition, financial literacy will have a huge influence on them becoming responsible.
Moreover, financial literacy is beneficial to college students because it will make them be more responsible and teach them to choose the right decisions. Informing individuals about the money will help build their character and they will ultimately become more aware of the importance of money. Furthermore, students won’t only improve their accountability of money but also in life too. They will be more able to efficiently choose the right decisions and analyze the effect of the choices they
In the short story A Lifetime of Student Debt? Not likely. Written by Robin Wilson, he goes into detail of the crises of college debt in the United States. The first point being made is on how students over barrow student loans. Some of the students come from low income families, and they are the first generation to ever attend college.
If students could learn to borrow a reasonable amount that they know they could pay back, it wouldn’t be as big of an issue. Many students borrow extreme amounts of money, only to graduate to find themselves drowning in
The authors break down the different topics and instruct teens on how to apply the topics to their financial life. The author advises young adults on how to stay away from financial troubles. Many of the financial troubles are elaborated by simply informing the reader and are supported with many examples. The examples serve to help the reader understand how to apply these concepts to the real world. The book also signs light on debt and payments on interest.
According to the last recording of student loan debt, the total amount of the United States student loan debt is roughly one and a half trillion dollars (A look at…). Statistics like these present the urgent need to resolve the major financial issue of student loan debt. Solutions have been given by many people to solve this issue but most solutions fail. The main reason behind student loan debt is falling to far into debt to the point where it is almost impossible to come back. The origin behind all of this is a lack of a student loan amount cap.
Most college students are already deep in debt before they finish school, as stated by the American Psychological Association, “College students in the United States graduate with an average of $29,200 in student loan debt. ”(American Psychological Association). College students accumulate just under $30,000 dollars in debt before their careers even begin, which means that they have to live frugally to meet the demands of their debt. Their struggles can get so bad that some college athletes report not having enough money to be able to travel home during the holidays or to pay for food (Compensation for College Athletes). College students put their health and well-being aside to work toward their futures.
There are a lot of misconceptions about student loans. A lot of people hate them, a lot of people need them. The majority of people don 't understand every facet about them and that can lead to trouble. Given that there is over $2 trillion in student loan debt, and that the average graduate has almost $35,000 in student loans, borrowers need to understand these facts to make sure they are making the best decisions possible.
The total U.S. student loan debt now surpasses $1.2 trillion and there is more than 40 million recipients owing on federal and private student loans (Malone). Most of the college students in the United States can’t afford their education by themselves and, as a result, students end up drowning in student loans in order to earn a degree. Student debt is a major problem in the US, and it is a major influence on the gap between rich and poor. A more accessible college education would help reduce the gap between rich and poor in the United States.
Since tuition has risen 3 times higher the rate of inflation in the past 10 years, this increase a student’s chances of not being able to afford higher education and also gives them a better chance of accumulating debt post-graduation. Some people think that the college education they acquired did not fit the amount they paid for it, even if they pulled out loans or were an ideal candidate for a scholarship. This is a scary fact because higher education can determine if you thrive
Going into debt in college helps build a good mind set for after college about how to spend/save
Sometimes it's hard to find money for our own self. I know students that uses their school money to get around places or to buy their necessities. This economic problem can make a student fall into poverty.
Loans allow receiving a college education seem like a smoother process considering that such a hefty amount to pay is divided so that it can be paid for in moderation. Despite the fact that it’s split into many payments, it’s still a large quantity all in all so unless indebted students aim for high income jobs, there would many years of difficulty to come after college. For this reason, undergraduates make it their goal to go after jobs which would prevent them from being constantly pressured to pay off debt. Thus, student debt is both a crisis and a reason to encourage persistence towards greater ambitions (Hillman, 41). It is a tremendous thing when a student seeks to be financially comfortable or even rich in the future but not when it is for the wrong reasons.
Student loans can be helpful, but when it's time to pay back, it can lead to future mental struggles and be stressful and hold you back from living the life you want to live in the long run. The student loan debt crisis in now only taking a huge toll on the personal lives of many Americans, but on the economy as well. Whether or not students graduate or not, if they pulled out student loans worth $200,000 they remain in debt for a remainder of years. As the problem continues to grow it becomes more and more critical to find a solution to help the well being of everyone in the nation, student or
Several college students deal with monetary obstacles every week. They have to deal with college books, meals, and dorms or apartments before they can even think about having any money left over for fun activities. College books, meals, and having a place to stay are all monetary obstacles because college students have to make tough decisions to get over these humps. Such as if they should choose a cheap apartment so they can have extra money for fun and risk having bad off campus living experience or choose a moderate to expensive apartment for a good off campus living experience but risk having potentially no money for fun at all.
In grade schools core concepts such as history, math, english and science are taught because they are identified as concepts that will be useful to students in their future endeavors. I believe that finance is something equally relevant in our lives to merit its teaching in schools. The questions that such an endeavor arise is to what extent will such a curriculum have on the financial decisions of youth into adulthood? To what extent should financial literacy be taught in schools? Who should teach it?
I had not realized the financial aspect of being a principal until taking your finance course. It really got me thinking about the financial aspects of education , such as , salaries, incomes, taxes, federal, state, local, funding, demographics, and budgeting. Background I