According to the latest report on financial capabilities by the Andean Development Corporation (CAF), in Colombia, 44% of young people said they had not saved in the last 12 months and 58% said they would not be able to cover an unexpected expense.
Ignacio Giraldo, CEO of RappiPayFinancial education for young people is key to empowering them, making informed decisions and planning their economic future. Today, digital financial institutions offer multiple tools to put financial autonomy into practice, which not only improves their personal prospects, but also allows them to organize their finances from the first professional moment.”
Below, Giraldo offers six tips for returning to school with good financial practices:
Budget your expenses
Keeping a detailed record of monthly income and expenses helps you understand where your money is being spent and where you can cut back if necessary. This practice allows you to have clear control and avoid unnecessary expenses.
Save and invest now
Even though income may be limited in college, it’s important to establish savings and investment habits. The earlier you start, the better your financial future will be. One way to do this is to opt for a savings account that offers returns. Investing early in life allows you to take advantage of the power of compound interest, which can lead to higher returns over the long term.
Good debt management
It’s tempting to use credit cards for everything at any age, but it’s crucial to do so consciously. Keeping in mind payment dates and taking advantage of credit card benefits can help you avoid high interest rates. Plus, using credit products wisely helps you build a solid financial history for the future.
Take advantage of special benefits and discounts
Many stores, restaurants, and services offer student benefits. Taking advantage of these offers allows you to optimize your money and see these savings reflected in your day-to-day life. Keeping an eye out for exclusive promotions and discounts for students can make a big difference in your monthly budget.
Prepare for emergencies
Creating an emergency fund with enough money to cover unexpected expenses is essential to maintaining financial stability. This fund can be a lifesaver in unexpected situations, avoiding the need to resort to debt.
Seek financial advice
In the digital age, there are numerous tools and apps that can help students manage their finances. Additionally, seeking financial advice from experts can provide valuable guidance in making informed and strategic decisions.
Starting to save and invest early can prevent many future headaches. By following these tips, college students can build a solid financial foundation that will allow them to face the future with confidence and security. “It is early financial decisions that make a big difference in adult life.
Taking advantage of the tools and knowledge available today can transform the economic reality of tomorrow,” concludes Giraldo.
