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In a society where the average child will see 40,000 ads by the time they reach 18, the predominant message is spend, spend, spend. We are not exposed to messages that encourage us to save, save, save. The ability to save money for future needs and wants separates those who are financially secure from those who are always living on the edge of a financial crisis.
A “spending habit” eventually leads to excessive use of credit, which uses future income to satisfy current desires. And we pay a premium in interest payments on top of the purchase price. Spending beyond our means (using credit to extend our current income), ultimately leads to a trap. This trap involves excessive interest (often exceeding 24% for students) to have the things we think we need.
Many students find themselves in financial difficulty, having to leave school or decrease their class load in order to repay credit card debts. Developing a spending habit is not cool. Instead of maximum flexibility after graduation, you will instead be limited if you have excessive debt. You may not be able to take that trip to Europe, or take the time necessary to find just the right job, or take a few months to decide what direction you want to go in. Instead you are immediately under the pressure to produce an income sufficient to pay off that debt.
DON’T GET CAUGHT IN THE DEBT TRAP. Even after you are established, don’t make the mistake of relying heavily on credit cards to have the things you want NOW, without saving for them. This is what has caused maximum stress, and lack of options for many working Americans. Excessive debt is a problem in our society. Those who struggle with overdue bills and calls from creditors would not recommend it as a strategy for obtaining the things that you want.
PEACE OF MIND IS WORTH SO MUCH MORE THAN “STUFF” YOU WILL PROBABLY FORGET ABOUT IN A FEW MONTHS.
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