This article will discuss how college education is being blocked or hampered under the current economic conditions.
Also, it will provide solutions for college students to do secure financial planning.
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The economy is what holds a country’s finances together and brings importance to every aspect of life.
Education is the basic need of every individual, and the economy plays a significant role in it.
They are two pieces of one puzzle. If the economy is stable, the education of the students will be privileged and vice versa.Click here to tweet Click To Tweet
There is no doubt that the economic condition of a country has hampered college education.
In the current crisis, the economy’s slowdown causes a significant reduction in the number of hours worked and hourly wage rates and reduces the number of funds available for educational institutions.
Moreover, it impacts students’ education and affects school enrolment, attendance, attainment, and scholarships.
The Impacts Of Current Economic Condition On A College Student’s Education
Although it may seem at first glance that the current economic crisis may have little to no direct effect on college students, the impact is much more significant than we can imagine.
For example, due to a dire economic crisis, most of the time, the college administration trimmed educational services while raising the tuition and fees, which puts a significant financial strain on the students.
Most students cannot get into college due to high tuition fees and requirements, which is increasing the illiteracy rate in the world.
The economic framework indicates negative and positive effects on students’ educational outcomes.Click here to tweet Click To Tweet
Suppose the economy is in a good position. In that case, it will allow educational institutions to be more flexible in the financial section for students.
They will be able to provide more financial security, scholarships, reductions in tuition fees, and many more.
In the previous surveys, the countries that have coped better with the current economic crisis or can maintain their economic conditions provided substantial fee reductions for educational institutes and innovative campaigns to help students with financial problems and protect educational outcomes.
The results of these efforts are very favourable for college students as they can focus on their studies to achieve exceptional outcomes.
In comparison to that, countries that are in economic crisis are not able to stabilize their educational systems.
As a result, the students cannot study properly, causing an increase in the illiteracy rate.
Micro And Macro Impacts
Current economic conditions have changed college education at both macro and micro levels.
At the micro level, student numbers are decreasing in specific programs.
While at the macro level, the staff is being reduced, and they are rationalizing their portfolio as much as possible.
So, in this way, not only the students but the educational staff are also being affected by the economic crisis, which will be destructive to educational outcomes.
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How Can You Manage Your College Education Irrespective of the Economic Crisis?
The reality of being hit by a significant adverse event that could affect your financial statuses, such as high tuition fees, a job loss, or a pandemic, can make anyone awake at night.
However, if you are already prepared, the crisis becomes less threatening to you.
That is why college students should have a proper financial plan to help them have a smooth college education, irrespective of any economic crisis.
Here is the list of the best solutions that will allow you to make a solid and manageable financial plan:Click here to tweet Click To Tweet
#1 Prepare To Minimize Your Bills
You need to utilize every asset to its best and cut anything that is not a necessity.
Bills, whether it is electricity bills or rent bills, come every month.
You are well aware that they are going to come every month. So, try to get your recurring bills as low as possible.
You will have less difficulty paying your bills when the money is tight or if the electricity prices get high.
It would be best to start by looking at all your bills to understand which assets you use the most and why.
It will help you re-evaluate what you should do to reduce the extra money wastage.
Try to develop the habit of turning off any additional light, heater, or AC when you are not using it.
It is also a good idea to look for lower insurance rates and inquire if you can cancel specific insurance policies to be ready in the event of need.
Make a budget A budget is an essential part of a financial plan. It is a helpful tool that allows you to decide where you should spend your money and where you stand financially.
Without a budget, you will not be able to see how much money is coming in and going out each month.
You will also not have any savings for an emergency by not keeping a budget.
Make a budget by enlisting all your college education expenses and comparing them to your monthly savings.
Now, you can adjust everything in your budget while saving some money for emergencies.
#2 Check Up On The Current Economy
It is a significant step for college students to understand their country’s economy.
It will help them have stable finances and guide them when they start their jobs.
So, keep a close check-up on the economic conditions to know how the country is doing financially.
#3 Get A Better Credit Card Deal
Getting better credit card deals with less interest is always a good idea than paying the standard massive credit card amounts.
Suppose you can get a good credit card deal with less interest.
In that case, you can automatically utilize the remaining money to do other financial tasks, and you will pay off your total debt faster.
It is vital to ensure that what you save from the lower interest rate is greater than the balance transfer fee.
It is also a good idea to ask your credit card company to lower your monthly interest rate.
Companies will do that sometimes to keep the customer.
#4 Keep Routine Maintenance
When making a financial plan, you should include your routine maintenance chores like a car or health insurance.
It is always easier and less expensive to fix a minor problem than a big one.
If you are keeping the components of your home, car, and physical health in good condition, you will be able to catch problems when they are minor to avoid any expensive repairs or bills.
You might have the presumption that you do not have the money or time to carry out these things regularly.
But these small things can significantly disrupt your finances or time if you do not avoid them because it is always better to exercise and eat healthy than to end up with diseases needing expensive treatments.
#5 Maximize Your Liquid Savings
The things that help you the most in a financial crisis are cash accounts, the money market, short-term government investments, and certificates of deposit.
You will want to turn to these resources because their value does not increase or decrease with current economic conditions, such as stocks.
Do not invest in stocks or other high-risk investments until you have saved up several months’ worth of cash in liquid accounts.
This means you can take out your money anytime without facing financial loss from your college education.
So, liquid cash can provide you with financial security and stability in your college life.
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Is It Necessary To Have A Strong Financial Plan Before College?
A college education is a huge stepping stone for an individual toward the next phase of their lives.
Finances are the most important to have a great college experience.
In a study, it has been found that 70 % of college students are stressed about their finances, which abruptly impacts their education and academic growth.
Furthermore, the current economic conditions, which are not so much in a successful pivot, are creating additional challenges for students.
To succeed in your college life, it is necessary to have a solid and reliable financial plan.
The plan will help you have a smooth college education, regardless of economic downfall.
Financial planning should be one of the critical tasks that you have to do before college.
Because when you are a college student, you have diverse financial responsibilities such as tuition fees, living expenses, etc.
So, planning your finances enables you to understand how to manage money and make the most of your resources.
Financial planning is analyzing of your current financial situation and listing the targets you want to achieve.
The student will have to make a list of the college education fees, living expenses, and every other expense to stipulate their expenditure according to them.
This way, you can pay for every college expense without stress or delay as you have pre-planned for every bit of it.
You will be able to focus only on your studies and college adventures rather than on money or the economy.
Financial planning enables you to maximize your assets, ensure your future goals, and provide stability to weather any bumps in the road, such as an economic downturn or a lack of college funds.
Parents should motivate and discuss with their children the need to have a financial plan before they leave for college.Click here to tweet Click To Tweet
The current economic conditions of a country are highly unpredictable.
As a college student, you must manage your finances as well as possible to turn any potential financial tragedy into a minor setback.
A student must manage their finances independently of any other resource or program.
Good financial understanding will help you move forward in your college education and career life.
An individual can never trust the economy as it can get extremely low or extremely high without notice.
That is why a college student needs to be prepared for every situation, particularly concerning finances.
A financial plan is the best solution for a college student to fight the economic crisis.
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