The Biggest Money Mistake College Students Make

If you avoided math and business classes in college like me, you probably get a little bored when studying financial charts.

Okay, not only bored but personally offended by all the numbers (and any kind of calculations involving letters).

I mean, letters are meant to be read not calculated.

Id rather try picking up sand with chopsticks than sit down to study math formulas.

Well, there is one simple math chart that every college student needs to see because it can help you avoid making one of the biggest money mistakes of your life.

Here is a simple chart showing how a simple $1,200 investment can grow over time:

This simple chart reveals how investing money early on in life will dramatically help you grow your money.

In 40 years, a $1,200 investment can turn into $37,691 (based on 9% interest rate). And if you kept adding $1,200 every year for 40 years into that same 9% investment, you would reap $479,641.54.

Heres a nifty compound interest calculator to help you experiment with different numbers:

Many college students dont think about investing or preparing for retirement and so many decide to wait until years after graduating college.

And thats the problem.

Every year we fail to invest, the more money we lose out on.

So dont make the biggest money mistake and start investing a little bit now.

Recommended Reading:

*Investment chart from

Should Students Invest In Cryptocurrency?

This is a contribution by Lucy Wyndham.

Andre Francois
Should Students Invest In Cryptocurrency?

The news is full of good and bad stories surrounding cryptocurrency. Around the world there are 12,000 Bitcoin transactions per hour, while, the value of Bitcoin increased by more than 1000% in 2017, proof that cryptocurrency is a growing phenomenon which many people trust and rely on to make an income. So, with students knee-high in debt, should they smartly invest in this latest trend to reduce their student debt and make some spare cash?

Making money

There are three ways to make money with cryptocurrency. Students may select to simply buy coins to sell on at a later date. To make a profit in this way, the key is to purchase coins at a low price and wait for their value to increase before selling them on. However, the current selling price is fairly high, so it’s likely to be some time before the value increases enough for an investment to be worthwhile.

The second option for students is to accept cryptocurrency payments. Students who run small businesses to make a side income will find that this is a great way of coming into receipt of coins. A third option for students who are computer savvy is to mine their own coins.

The good and the bad

Most recently, a 21 year old college student made ten times his initial investment figure after sinking 80% of his earnings into cryptocurrency investments and, in 2016, a Sophomore student at MIT in Cambridge, Massachusetts made an estimated $20,000 in just four months by cryptocurrency mining.

However, it’s not all good news. Facebook has banned all cryptocurrency advertising over fears of deception and misleading adverts, which has resulted in a drop in the selling price of coins. Cryptocurrency is finding itself increasingly being hit by scams and over $600 million illegal trades have recently been discovered in South Korea.

To invest or not

If you’re a student looking to invest in cryptocurrency, it’s important that you take the time to learn the facts, including the risks, before plunging your finances into any cryptocurrency purchase. This includes researching the topic and ensuring you learn the cryptocurrency terminology, something which you’ll likely never have come across before.

Many people, including students, across the world have made money following sensible cryptocurrency investments. Students looking to follow in their footsteps should ensure they are educated before making the financial risk.

3 Smart Ways to Reduce Student Debt

Photo by Alice Pasqual

Student debt forms a huge part of a graduate’s finances and reducing it is a challenge that affects anyone who should pay back loans incurred while in college. There are 17 million student borrowers in the US according to the Federal Reserve with $376.3 billion debts. The average monthly payment of a borrower under 30 is $351. That means that the average loan is $22,135 per person in this age group. Millennials feel the most pressure preventing them from purchasing a home or starting a business. Although it is not easy to manage college loans and still have something to eat at the end of the day or clothes to put on your back, playing smart when it comes to student’s liabilities can ameliorate the situation.

Refinance and Consolidate

One of the most obvious solutions is to find ways to consolidate and refinance your loan. The concept is simple, you are eligible to take out a new loan with better conditions because you might have a better credit condition now compared to when you were just first starting out or was a student. When you got your loan, you did not have a good credit history and therefore was considered a high risk by lenders. You were locked in with a loan with a high interest. Now that you have a job, you qualify for a favorable loan. Many comparison sites exist online to guide you in refinancing your loan.

Exceed Monthly Payments

For those who prefer to put a substantial part of their salaries into loan repayment, this is a strategy that will reduce monies owed significantly. As disposable incomes increase, set aside a fixed percentage of your wages to pay debts and loans that will lower the amount you borrowed at a faster rate. On top of automatic deductions, you can put money gained from windfalls such as tax rebates, salary increases, inheritance or lottery winnings towards your loan debt.

Debt Forgiveness

Debt forgiveness aims to cut you some slack but it does not mean that the amount you owe is written off completely. It might only provide short-term assistance to ease the pressures on borrowers. Debt forgiveness is a matter to consider once you are consolidating loans. You are not going to enjoy this break if you consolidate and refinance your loan. There are several ways to get your student loans written off or reduced. Joining the army, becoming a teacher or working for the public service will get your loans reduced provided you meet conditions. The Public Service Loan Forgiveness Program writes off the remaining balance on the loan provided that 120 qualified payments have been made.

Paying off student loans after higher education has been completed is a tough call especially if you do not have a high-paying job. However, with clever planning and strategy, you can get that loan fully paid by consolidating and refinancing, paying more than the amounts due religiously and even through debt forgiveness.