Why are most college students broke?

Yep, another money related question. I keep hearing jokes and stories about college kids being broke. But, how true is it? Are most college students really struggling financially?

That's a really good question! The idea that most college students are broke is a stereotype with a fair amount of truth at its core. There are a good number of reasons why this might be the case.

Firstly, tuition and fees are rising every year, and many students find that even with financial aid and scholarships, they're still dealing with a hefty cost. Moreover, this doesn't typically include living expenses, books, and supplies which can quickly add up.

Secondly, many college students are juggling their academics, extracurriculars, and perhaps part-time jobs. With this busy schedule, some students don't have the time to work enough hours to be financially comfortable. Part-time jobs while in college often pay minimum wage or slightly above, which makes earning substantial money challenging.

Thirdly, a lack of financial literacy can also contribute to the issue. Many students are managing their finances for the first time and may not have the knowledge or tools to budget effectively, leading to overspending in certain areas. That definitely doesn't mean all students are bad at managing money, some are quite good at it, but it does apply to a considerable number.

To give you an example: imagine a student has $20 left for the week but the cafeteria is closed. They may opt to order a $15 meal tonight and then only have $5 left for the rest of the week.

Finally, keep in mind that some students deliberately choose to live frugally to minimize debts. They might take on life as a "broke college student" as a conscious choice to avoid excessive student loans.

So, while it is not absolute, the "broke college student" narrative does hold relevance for many. It should also be noted that there are resources on many campuses to help students navigate financial issues. Some schools provide free financial literacy programs and food pantries to help alleviate some of these challenges.