When it comes to college student, there is a common perception that they have no idea how to manage their money, tend to spend frivolously when they do have cash available, and are clueless when it comes to budgeting. However, the results of a recent survey have thrown new light on the habits of college students when it comes to their finances.
The survey focused on how college students in the United States managed their money and was released recently by Sallie Mae, a leading private student loans company. Around eight hundred college students were polled as part of the survey with the ages of the student ranging from 18 to 24 years.
Surprising results about students and their financesMany will be surprised at the results of the survey, which was carried out in December. According to the data 77 percent of United States college students were paying their bills on time each month and 73 percent were doing this alone without the help of parents or other relations. Just over 50 percent were also found to be putting a little money aside each month into savings.
The study also found that many students were reluctant to take out further credit such as student credit cards, loans or overdrafts, as they did not want to burden themselves with ever-increasing debt levels on top of any student loans they already had. According to the results, only 56 percent of the students surveyed had a credit card and these cards had an average balance of just over $900. 85 percent of students said that they preferred to use a debit card when making any card transactions in shops or online.
An official from Sally Mae said that it was clear that students were starting to learn how important it was to have good credit when it came to their financial futures, and that many students were keen to learn more about sensible financial management. He said that many students realized that they could increase their credit scores by using things such as credit cards but were also aware that they needed to keep up with payments and only use the card for things that they could afford.
Another official said that college students who were able to get part time jobs would fare the best when it came to credit scores, as they would be able to afford to build their scores by taking out credit cards but could also avoid debt and interest by repaying what they spend from their wages.