Advice for millennials, from millennials on student loans & money management
In a recent Guardian article, millennials were asked what they wish their parents had taught them about choosing a college, student loans, and managing their finances.
Millennials regret taking on student loan debt
Many millennials expressed regret that they had spent so much on their college degree and wished they had looked into less expensive options. Several said they didn’t fully understand how much debt they were taking out and how that would affect their lives after college.
I wish my parents had pushed for me to go to a community college or had helped me weigh my options better. Instead I went to a private university and received a degree in the humanities. At 26, I have over $30k in student loans. I just got my first “real job”, where I have been able to start paying down my debt. But does an 18 year old really understand the concept of what $40k in debt is? I hardly think so. – Shay, Polson, Montana
I was going to have to take out student loans no matter what, but attending a public school that cost $20k per year instead of a private school that cost $50k per year would have been a good choice. My mother trusted me to make the decision on my own, but now I have huge debt. – Amelia, Brooklyn, New York
Millennials need to know how to calculate student loan repayment to estimate a solid, real-world dollar amount for monthly payments.– Chris, New York, New York
Young adults say budgeting and saving is key
Several young adults expressed the importance of sticking to a budget, particularly during and right after college, and avoiding overspending.
The key to good credit: Live within your means. Identify wants and needs. Don’t use credit for impulse buys. – Jose, Miami, Florida
My advice: Don’t spend what you don’t have. Buy used cars and pay for them in full, if you can. Live simply, be thrifty, and cook for yourself at home. – Jordan, San Francisco, California
We love all these tips and believe it’s important for young people to learn about financial management and fully understand the burden of student debt before committing to take out thousands of dollars for dollars.
Millennials and young adults: What advice would you add to the list? Parents: what have you taught your children about money management?
Let us know in the comments below, on Facebook, or on Twitter at @CFGCollege.
photo credit: Nastassia Davis [www.nastassiadavis.com] & LeafLanguages via photopin cc
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