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It’s not an exaggeration to say that money is one of the most important aspects of living life. Many people spend the entirety of their lives needing money, training to make more money, or actually making it so they can afford all of life’s many expenses. That said, one cannot deny that the modern days numerous expenses call for personal financing and management for almost everyone, but especially students. It’s no secret that many college students struggle with their finances, and while this scenario can be somewhat attributed to the rising cost of a college education, there have also been many arguments supporting the notion that students simply do not understand the importance of managing their finances. This sample piece discusses the value of personal finance in a student’s life.
The primary reason many students suffer financially throughout their college years is that they are often impulsive, mostly due to being young and relatively inexperienced in living on their own. Most students do not fully understand the true extent of expense when living solo, often leading them to put less value on money for necessity rather than amenities. A lack of inhibition is to be expected to some extent, and there’s not much that can be done about it outside of life experience itself. Personal financing is an excellent alternative, due to its inherent nature of bringing money to the forefront of the student mind. The first step to solving any one problem, in this case, a student’s lack of awareness or experience on an issue, is to make the issue obvious so that it can be studied and accounted for. In this light, personal finance is important to students simply so that they may realize just how vital financial management is when living on your own.
Naturally, personal finance serves a very important functional purpose for students as well. Once the need for personal finance makes itself obvious, that usually equates to budgeting. Budgeting one’s finances is one of the most effective ways of countering the impulsiveness of youth, primarily by not condemning it outright. Being able to spend money on things one does not need but does enjoy shouldn’t be criticized, so long as it is done in moderation and secondary to necessities, which budgeting helps facilitate. By taking the time to partition one’s resources according to their needs, not only does a student learn the details of their living expenses, but they ensure that they can be met. Furthermore, this partitioning of money lets the student know exactly how much they have left over to satisfy their secondary wants following their primary needs. In this way, personal finance, and the budgeting it entails accounts for a student’s needs but does not punish them for also satisfying their wants, within reason. Not only does this lead to greater financial stability for them, but it helps keep them content as well.
Finally, and perhaps most importantly, personal finance helps facilitate fiscal responsibility in students that have, for the most part, been able to rely on the financial abilities of their parents throughout most of their lives. There is much to learn about the financial world, especially once you are living on your own. Many students do not know the true value of an investment, saving money on a monthly basis, or the dangers of relying on credit, despite how important it is to build that credit. To call the financial world complicated would be an understatement, which is exactly why personal finance is such a broad term; and why learning its intricacies is valuable for anyone, not just students. In truth, the value of personal finance cannot truly be ascertained since it includes such a broad spectrum of knowledge, skills, and tricks, but that value also cannot be overstated enough. It is a valuable life skill that will serve any individual for as long as they live, but students, who are usually facing the world alone for the first time, can reap more benefits from personal finance than nearly anyone else.
In short, the value of personal finance to students is potentially even more significant than it is for the average member of society. There’s no real specific reason for why other than the simple fact that knowing how to manage your finances in useful no matter who you are or what you do. All other factors notwithstanding, there’s truly no argument to be made against an individual learning as much as they can about personal finance. But for a younger person that has less life experience than others, the benefits of learning and mastering the many facets of personal finance are great. Aside from teaching them more about managing their own money in a way that still allows them to indulge to an extent, they will also learn the value of many different financial tactics and the risks of relying too much on riskier financial alternatives. Going into full detail on the values of personal finance for a student is not possible in this brief discussion, but in reality, it doesn’t need to be. That personal finance is a valuable skill to learn is obvious, regardless of what member of society is in question.
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- Joy, Devin. “Personal Finance for College Students | Lesson Plans and Workbooks.” InCharge Debt Solutions, InCharge Debt Solutions, 2018, www.incharge.org/financial-literacy/resources-for-teachers/college/.
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- Sherman, Brad. “The Importance of Personal Finance Knowledge.” Sherman Wealth Management | Financial Planning in MD and DC Metro, 1 Nov. 2016, www.shermanwealth.com/the-importance-of-personal-finance-knowledge/.
- Zucchi, CFA Kristina. “Why Financial Literacy Is so Important.” Investopedia, Investopedia, 19 Mar. 2018, www.investopedia.com/articles/investing/100615/why-financial-literacy-and-education-so-important.asp.