Financial security is an important concept for everyone, but its especially necessary for college students to be aware of this concept given the events of the last few months.
Fortunately, there’s a lot that can be done to improve college students’ awareness of financial security.
The first step is to take charge of your finances. This is a good idea at any time, but it’s especially necessary now and in the months to come.
The next step is to either create a budget or revamp yours if you already have one. This will help you get a handle on whatever cutbacks you have to make, and it may help you identify areas where you can make money and improve your financial security.
Once you’ve done that, evaluate your savings account, or start one if you’ve neglected savings to date. Look for secure places to open one that offer the best interest rate, and be frugal with your savings to start.
Another area where your financial security can be improved is student loans. Currently, no payments are required on all federal direct student loans, and these loans have a zero percent interest rate until the end of September.
If you’ve lost your job due to a campus closure, don’t panic. Check with your individual college to see if there are resources available that are directly related to this.
On a different front, if you’ve already been smart enough to start a retirement account, look into possible options that may increase your financial security. Several choices may be available, and these include a college 529 plan or a taxable brokerage account. In addition, you should consider a Roth IRA, which gives you the opportunity to withdraw contributions and deposits tax-free without paying any fees if you have an emergency.
Finally, understand that there is financial help available. Colleges are doing everything they can to help students weather the current economic storm, and that includes helping college students’ awareness of financial security. You might be surprised at the benefits you’ll be able to find, and in the process, you’ll learn more about how to understand and control your finances in the future.
