College is expensive. Between tuition, fees, the need for updated technology and books, college students see their bank accounts dwindle very quickly. Textbooks are very expensive. Many students opt to purchase used textbooks, but prices still add up depending on how many credit hours a student is taking. Although many students sell their books back at the end of the semester, the return is a mere fraction of the initial cost. The act of balancing school costs with living costs can be very trying for a student who is new to handling his own finances.
With the amount spent on school expenses, many college students don't have much left over for living expenses. Living expenses are more costly than ever with the cost of cell phones, cable, gas, entertainment, dining out and convenience foods. Social and family pressures surrounding holidays and spring break make travel a factor. If not budgeted properly, living expenses can get out of control, causing many financial problems for college students.
Students, who have little experience controlling their finances on their own, often run into problems when they arrive at college. They don't know how to budget properly or track their spending. The resulting problems include over-drafted accounts and fees, including late fees from bills they were not able to afford. Banks attempt to lure students in with promises of free gifts when they open an account. However, many students are unaware of minimums and hidden fees that may be attached to their accounts.
Perhaps the biggest money problem that college students face is additional debt as the result of credit cards. Although a credit card can build credit, provide cushion and provide security in the event of an emergency, many college students do not understand this concept and overspend. Overspending on credit cards is easy for young people to do because of the lack of immediate consequences. Temptation is prevalent due to the fact that colleges and universities earn money by letting credit card companies promote on campus. Credit card debt incurred during college can carry over into your professional year, making it very difficult when it comes time to pay back student loans.