Introduction:
Personal finance is a skill that every student should be familiar with. Most students in this generation rely on their parents/family members. However, if today’s students can learn personal finance skills, they will be able to become financially independent. It is extremely beneficial to students if they begin at a young age. And it can help them in a variety of ways, such as students paying their own college fees while studying, purchasing/enrolling in courses of interest, assisting their families financially, and so on.
So, as a student, you may be wondering how you can begin learning personal finance. However, this blog is here to assist you. There are numerous approaches to becoming an expert in personal finance. “Personal financing is nothing more than earning and managing money. Earn money by learning skills that are in demand with your interests, and then invest that money to get return out of it.
Skills that are in demand:
- Digital Marketing
- Communication skills
- Start your own YouTube channel
- Blockchain development
- Event management
As a student, you have many objectives. Improve the skills needed to achieve your goals and become a master in that domain.
The skills listed above are critical for any student seeking financial independence. However, communication skills are essential in helping students achieve their goals. And this skill contributes to the development of the student’s personality in society, which is critical. And if you master this skill, you will be able to earn as much as you want. Two genuine ways to learn personal finance that every student should know:
Ways to learn personal financing:
Good Debt:
Even though the concept of “good debt” may appear absurd, it does exist and is preferable to “bad debt.” Borrowing money for purposes that have the potential to grow wealth and/or income over time, such as enrolling in school to learn new skills that could eventually boost your employability, is considered good debt.
Student loans, on the other hand, can be viewed as a negative debt if the degree programme you’re about to begin requires you to borrow a significant amount of money without the promise of a higher paying job or increased professional marketability.
Compound interest:
“Compound interest is the world’s eighth wonder,” Albert Einstein said. “He who knows it earns it; he who doesn’t has to pay for it.” Compound interest, in general, refers to a growth multiplier that builds on previous growth or the concept of earning interest on interest.
Assume you have a savings account with a deposit rate of 10% compounded annually and you deposit $2,000 per year from the age of 19 to the age of 25. How much do you think would be left in your account if you didn’t touch it until you were 65 and cashed out? $50,000, $500,000, or nearly a million dollars? You have a good understanding of compounding if you estimated close to $1 million.
Conclusion:
Start working on your finances today, do not postpone it till tomorrow. Take action today, and you might be one step closer to financial success.
