1. Sticking to Cash
When the whole economy is going cashless, I don’t think that students should stick to cash. Moreover, wallet and credit facilities also bring about hidden benefits, if prudently used. There are many offers and cashbacks available, so switching to online mode should be a planned shift. Don’t think like your ancestors, financially speaking!
2. Overspending on Commute
Students who spend a higher share of money on travelling should instead make a monthly pass according to the needs. Paying daily while commuting will always strain your cash reserve, so it’s better that you switch to a monthly pass system – for metro, bus or local train.
3. Ignoring Government’s BHIM app
Given a choice, sticking to private firm wallets can hurt you a bit more than you expect when you decide to withdraw to your bank account. They levy their fees as transaction charges, payable by you. So it is better that you switch to government apps for digital transactions.
4. Shopping in peak demand seasons
It is always seen that the prices drop decisively at the end of the year, beginning of monsoon, and similar “off-peak” demand seasons. So it is better not to shop in peak demand season, as the prices are expected to fall as time goes by.
5. Buying first-hand books
Beyond the “fresh smell” of a new book, there is no rational reason for the prudent student in investing huge sum of money on “exam-prep” books that won’t be useful after that exam. Instead, it is better to buy second-hand books or taking it from a senior.
6. Not planning the budget
Even the government has a budget which it plans to follow. Similarly, the financially prudent student always prepares a monthly or a weekly budget to fit in all that is needed, without bringing about trouble to our parents.
7. Not applying for scholarships
Getting a scholarship is one of the best feelings but the regret of not applying for one, is another equally strong feeling. Even if the odds of getting one are bleak, still one should plan methodically and apply – unless you are on the scholarship decision-making board, you do not know what the future has in store in for the applicant.
8. Not repaying loans
Loans help you study in the courses and college that you desire, keeping in mind your financial barriers. But it builds a negative reputation for you, in the lender’s books, when you fail to repay the amount during your college life.So it is better to take pending repayments out of the equation in time. If you are taking funds through a site like GraduFund, you also unlock huge career benefits for timely repayments.
9. Aiming at a “pricey” college
Directly aiming at a very pricey college with good “crowd” soon becomes a headache when your father talks more with the bank people than you. So financially speaking, it is advisable to study in a college of good repute offering great career tracks and alumni track record, than opting for one known to pull price-insensitive “crowd”.
10. Destroying your credit score
Credit cards can help build your reputations in parties, but it may even destroy it when you miss your payments because it then remains in your credit history for a long time. Being prudent and repaying on times helps build your creditworthiness for future education loans, personal loans et al.