Zurie
How can I properly be financially literate after my post-secondary education?
I'm going to be a student aiming to achieve a medical degree, but to do that I'll have to take out a couple of loans down the road. I'm not sure as to how I can handle money the right way with the burden of student loans after college because I have not bee taught as to how to do it while saving the money simultaneously.
#money #StudentLoans #FinancialLiteracy
3 answers
Olivia D'Arolfi
Olivia’s Answer
There are many ways you can become more financially literate! There are many resources available from free to paid. Paid resources could include taking courses, purchasing tools such as finance text books, and some free resources include reviewing online resources. There are plenty of resources available online to help with financial literacy. If you are not sure how to manage your money, you could start by creating a budget. This is a great way to be able to manage your money when your income is fixed by the amount of loans you are receiving.
Olivia recommends the following next steps:
Jyoti Jhaveri
Jyoti’s Answer
Simple equations-- your rent should not be more than 25% of your income, at most do not let your rent exceed 1/3 of your monthly income. Here your income is the money that has been loaned to you. I lived with roommates during all my schooling. In addition, you will have utilities, food and transportation costs. My university offered free basic medical care on campus and I had my dental cleaning done by student dentists. I had no family support for my education and relied solely on loans , grants and scholarships. Cable and Starbucks should be the first things to go. I also frankly told my friends and fellow students about my budget constraints, so they knew the high-priced ski trip was out of the question. I was at a university event and went to purchase a candy bar. It was $2.50 for what is usually $1. I left it at the cashier. Be mindful you want your loans to be manageable and you don't want to spend the rest of your life paying them off.
Tyler Nesbitt
Tyler’s Answer
Hi Zurie,
To expand on Olivia's comments above, creating and sticking to a budget is a huge part of managing your finances as you navigate through life. When managing your finances, it's important to know how much money you are bringing in (revenue) and how much money you are spending (expenses). It's important to make sure you are spending less than you are bringing in. There are a number of really great applications and resources for you to use as you build a budget and to use for real-time tracking such as Mint, which can pair directly with your bank account to automatically track your expenses and maintain the budget you set for yourself.
Tyler recommends the following next steps: