Essay Sample on Financial Instability: A Growing Challenge for College Students

Introduction

Financial instability is a significant challenge in various colleges in the world currently. Most of the students are facing financial difficulties while undergoing their collegiate lifestyle. Financial stability is a significant challenge that most students, according to the statistics that were done educational organization. There are various problems that led to financial instability in a college student's education system. Some of the problems include, lack of budgeting and planning financial resources, management skills, decrease in income, family and marital issues and education expenses. However, in this argumentative research essay, we will focus on the lack of financial planning as a problem that affects the student's money security in the college setup. The following topic plays an essential role in explaining why finance problems is a massive factor in the student's educational measures in our current society (Lim 152). The paper will discuss how financial resource planning problems play an essential duty in the life of a student who is in the college system.

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Parents, tutors, and the community at large should be able to understand the student's challenges they face while controlling their financial problems in the education activities. Financial instability is a significant challenge to the growth and prosperity of the education operations systems. My opinion supports the topic that states the economic uncertainty of the college to be one of the challenges to the student's education services in the organization. Long (2014) states that more than 80% of the students who are in college are profoundly affected by the financial challenges in society from one perspective to another (211).

According to Hillman, (2014), the information gathered from the public members; it is therefore clear that most of the students are financially unstable (828). The following factor is attached to the life of students for an extended period of time until they resort to paying their loan allocations. One of the reasons why most students find themselves in this situation is poor Planning of financial resources. Most of the students usually spend their finance extravagantly without saving. Students should be advised and trained on how they can use their funds effectively. All the students should have a financial account that they store their finances. In other words, all the parents should advise their children on the money usage ways. The parent's financial advice has a significant impact on the wellbeing and growth of the student financial plan. In some parents should ensure that they open to their siblings a combined savings account. Through doing this, the student will be able to minimize the financial mismanagement usage rate in the institutional setup. With a strict inspection and monitoring of the financial resource structure of the students, parents will be able to advise and enhance an effective financial stability plan to their loved ones in this financial structure.

Educate Yourself

A student should be in a position to ask himself or herself several questions as far as his financial position lies in the college. There are several ways of improving and securing your financial strength. A student should be able to recognize a suitable plan and technique for securing his financial strength in the organization. One of the effective measures a student should take is to educate himself or herself on the basis of financial stability. The student should first learn the importance of having a stable financial structure. With developing a financial structural measure, students will be able to understand the importance of creating a financial base structure. However, a student should even seek more information from the tutors, friends, and parents in order to obtain knowledge on matters concerning financial Planning. After the student, have understood the technique of Financial Planning, he will be in a position to exercise financial Planning in society.

Starting a Saving Account

A savings account is the most lucrative and substantive way of securing a stable financial planning system. Students in the institutions should open a financial savings account. The savings account will assist the students in exercising the culture of financial Planning and securing an interest rate by multiplying their financial savings. The students should, therefore, calculate their financial income and savings then save a specific amount of money to his account. While using the savings account, the student will be in a position to calculate their capital standards by ensuring that they access their loans by their saving account. According to Gudmunson (2015), stated that more students do not prefer a start a savings account banking. This has led to a failure in their financial stability in society from one perspective to another.

The student should open a credit card in his name, using the credit card, the student will be in a position to increase their savings accounts effectively in the institution. With the use of debit cards, the students will be in a position to save for extra money in his or her finances. The student will be in a position to take full responsibility for his finances and make an effective decision while accessing his or her finances. The debit card also will minimize the overspending of finance in the institution by the students. The student will be in a position to spend a little amount of money at a time. The student will be in a position to secure an effective financial plan on his financial base.

Financial Planners

Students should be able to meet the financial planners who will effectively advise them on how they can effectively manage their financial base effectively in the institution. Most of the students come from high school without a piece of proper knowledge in financial management; this makes planners be their best choice in advising them accordingly. Parents should be able to look for a competent financial planner for their children while in the institution. Financial advisors will teach the student on some of the ways of managing their savings, start earning interest, and building their credit. Students will be in a position to develop a creativity mentality in creating and developing a business activity. While in the institution, the student can look for other activities that can help them in enhancing useful and substantial economic stability. Financial advisors, on the other hand, will help in initiating a financial base technique that will assist the learners in being creative and visionary on how to use money.

College also should introduce subject units that teach students on ways of saving and planning for their financial resources. Students will be able to develop a creative mentality and understanding of how they can manage their financial structure. The institution also should act as a source of financial motivation and guide all the students who are seeking a financial structure in the college. Choi (2016) stated that the learning environment has a significant impact on the student's financial capacity in the environment. The institution also should bring other financial resource experts and encourage students in specific ways they can improve their financial resources in the institution. The students, on the other hand, will learn specific new ways of improving their financial capacity in the institution. College also should provide a conducive environment where learners can be able to learn and develop a financial management planning structure in the environment.

Budgeting

According to Smith (2016), the financial statistics that were done in the United States institution stated that most students had not developed a proper budgeting technique in the institution. Students should begin by learning how they can plan their finances effectively by initiating an effective budgeting mechanism. In each and every month, the students should be in a position to save a certain amount of his or her paycheck or income. The student should balance the amount he or she uses in entertainment, food, clothing, and travel expenses. When the student develops proper financial budgeting, they will realize that they use a massive allocation in their fiances compared to the amount they save.

One of the financial techniques the student should develop is creating self-control. The students should be able to exercise a strict and effective plan that will ensure that they use a restricted amount of finance in their institutional expenses. For instance, when the student overspends a certain amount, he will then compensate the money in his savings account (Choi, 163). The student also will be able to face various emergencies challenges that, in one perspective, to another may hinder an effective planning structure in the organization. When emergencies arise, for instance, the student should be able to develop specific ways in which they will be able to handle the challenge effectively.

Learning to Live Within Your Means

Proper budgeting will help you in learning the amount that you spend in a given period of time. There are other expenses that a student should forgo in order to maintain his financial position in the institution. For instance, going out with friends, purchasing expensive electronic appliances, and entertainments. A student should ensure that they meet their financial obligation first before they begin spending their financial resources. College life is a long and painful journey that a student undergoes through; therefore, it is advisable for the students to make certain sacrifices in order to make ends meet.

Avoiding Accumulating Debts

Accumulative debts can follow you and destroy your financial base from one perspective to another. The student should avoid as much as possible unnecessary debts that may hinder the growth and stability of financial strength in the institution. The student also should have two credit cards, one for personal use and the other for emergencies; using this strategy; the learners will be able to minimize the increased usage of finances sparingly in the institution (Gaines et al., 379). The students are also advised to purchase products that they can only afford to pay. This will reduce overspending rates that students will be incurring from while purchasing different products in the college. The culture of using your credit card will help a student in improving his credit card score and award him a house or a car after completing university.

Preparing for the Future

The student should be in a position to think about his future plans and aspirations in life. The student should be in a position to think about spending his finances effectively by saving his money accordingly. During college life, a student should allocate specific money for his emergency funds, down payment for a home, and a retirement plan. Creating an emergency fund by the student will help him when he has unexpected expenses and a setting for retirement plan funds earlier in the organization. The student should begin by saving a small amount of money bit by bit; this will allow the student to be in a position to expand his savings account. The culture of saving an expected amount of money will allow the student to be in apposition to create other ideas of improving his financial strengths in the organization structure.

Students should be able to take their finances seriously, while still in the college this is because at that moment there are no more expenses. During college, students tend to forget the fact there is still another life that awaits them after finishing their college life. After graduation, the student will be able to thank himself more since he will be in a position to create an effective plan in the operational structure....