To buy or not to buy?

As a student you have to think very carefully about where you spend your money. Student financial aid is only 467 Euros per month. In the Helsinki metropolitan area the rents are soared and the food prizes are getting higher and higher. How should a student make ends meet?
The answer is that you should do some work at the same time. But then your studies suffer. The truth is that, if you don´t work, you don’t have any spending money, let alone finances for mandatory expences.
I’m a girl who lives very close by the city center, where are lot of temptations. Just around corner there is a new shopping mall, with lots of beautiful restaurants and new clothing stores. But what can I do? I have only 20 Euros in my account. Could I leave those lovely 60 euro shoes in the store and not to buy them? It would be a crime! I decide to walk to store and buy those lovely shoes, with my credit card! I’m so happy! However, now I have to travel by train every day for an hour to my parent’s house to get some dinner. For them I will certainly not tell why I’m broke!
Many users build up large debts on their credit cards. Those consumers pay only minimum instalment each month, leaving the balance of debt to increase over time. Adriana Buckley said in his book Financial Crisis that only one in ten people with credit cards in UK pay off the minimum amount-between 2 and 2½ per cent of the amount outstanding-each month.
Sad to say, I´m one of those people. As a student I have to pay the minimum amount (on my bank 10%), even if it goes on the interest rate. It´s a bummer, but as a student if you really want something, and you’re not working, you have to get funding from outside the student aid.
Finance affects the daily life of people, because we live in a society where money is needed almost everywhere. Erik Banks started in his book The Basics Finance that once we understand the essential elements of finance, we can identify the motivations and goals that drive specific actions and decisions. I think that is very well sad. Why did I need to buy those shoes? Because those were very beautiful shoes, did I even need any more pairs of shoes? NO!
I should start doing some serious financial planning to get rid of me credit card debts.

Sources:
The Basics Finance, 2007 Erik Banks.
Financial Crisis: causes, context and consequences, 2011 Adrian Buckley.

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One Response to To buy or not to buy?

  1. jennakae says:

    Really good subject! That sound so familiar:)

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