3 Financial Myths College Students Believe
How would you rate your money management skills? Are you an economics whiz or do you lack confidence when it comes to personal finance? Well, according to the 2015 U.S. Bank Students and Personal Finance Study, most college students are the latter. In fact, when asked how successful they are at managing their money, half of the 1640 college students surveyed said they would give themselves a C or below. These figures are slightly alarming since college is usually the first time young adults are on their own in the world. Not only are they unfamiliar with budgeting and saving, but they also have very little to no knowledge of credit and credit scores. Scroll down to find out some of the scary findings.
MYTH #1: Once a Bill Is Paid Off, It's Gone Forever
There is very little understanding of how much impact delinquent loans and late payments can have. Of students polled, 61% believe that once a delinquent loan, credit card balance, or bill is paid off, it is removed from one’s credit report. The truth is late payments can stay on your credit report for up to seven years.
MYTH #2: Checks and Debit Cards Help to Build Credit
Of students interviewed, 60% think that whenever they use a check of debit card, they are helping to build their credit, but this actually has no impact on a credit score at all.
MYTH #3: Cosigners Are Off the Hook If the Student Is Unemployed
A solid 47% believe a student loan cosigner will not be held accountable for paying off the loan if the student doesn’t find a job. In reality, cosigners are equally as responsible for the repayments, regardless of employment.
Start your financial future with the money books below.
What's the hardest financial lesson you've had to learn? Share in the comments below.