As they enter adulthood, college students begin managing their own finances. However, many still lack a solid understanding of basic economic concepts. In a recent survey, 7 out of 10 respondents answered “No” when asked, “Do you fully understand savings accounts, installment savings, andhousing subscriptions?” That’s why Pharos breaks down these essential financial concepts —certificates of deposit (CDs), installment savings, and subscriptions clearly and simply.

 Let's first look at “certificates of deposit (CDs).” A CD is a financial product where you deposit a certain amount of money in abank or financial institution and earn interest over a set period. It’s a stable investment option because it guarantees the return of your principal amount, along with a fixed interest. CD accounts can be classified in to short-term and long-term based on the contract period. These can be useful for long-term asset management if you’re looking to grow your savings steadily over time.

 Next, let's talk about “installment savings.” Installment savings is a way to save money by regularly depositing a fixed amount into a bank account to build up a lump sum. Typically, you deposit money on a monthly or weekly basis, and at the end ofthe term, you receive both your principal and the interest earned. Unlike a CD, where you deposit a large sum of money at once, installment savings involve saving small amounts over time. It’s a great option if you want to start saving with a small amount and need a structured, long-term saving plan.

 Finally, let's discuss housing subscriptions. Housing subscriptions are often considered the most difficult concept for students to understand. It is the process of applying in advance to purchase a home, typically for apartments. To apply for a housing subscription, you need to have a “housing subscription savings account.” There are also other specific requirements you must meet to be eligible. Once you qualify, you can submit your application, and if you win the lottery, you can proceed to the contract stage. The advantage of housing subscriptions is that they allow you to buy a home ata lower price, and you may also receive tax benefits or other forms of support. However, since the competition for these is usually fierce, careful planning and preparation are essential.

 A Shinhan Bank branch office is located on Kyonggi University's Suwon Campus. It is located on the second floor of the Welfare Center, and operates from 9 AM to 4 PM on weekdays. Using the campus’ Shinhan Bank services can provide you with reliable financial assistance and knowledge regarding financial products.

 Today, economic activities are an essential part of our daily lives. Especially as we become adults, we must take on more responsibility in managing our finances. To do this, it’s important to start by learning the most basic concepts, apply them in real life, and gradually develop our own financial understanding.

Planning & Marketing Editor • LEE CHAE EUN • leechaeeun0318@naver.com