Financial Tips for College Students

A Few Basic Financial Tips for College Students

* Organize your files. Creating a paper and/or electronic filing system will make paying your bills on time and meeting deadlines easier. Record keeping also helps avoid potential disputes-disagreements regarding whether the terms you agreed to with banks, stores, or friends have been upheld including timing of payment and amounts. You'll also want to keep records for tax purposes.

* Make a budget and stick to it. A budget is just a self-imposed guideline for how much money you can spend and what you can spend it on. You will be amazed at how much farther your money goes when you have a budget. Life is unpredictable, so don't forget to allocate money for unexpected expenses in your budget.
* Buy used books. Many Students and their parents are shocked to learn how much textbooks cost. They can average $1,000 a year. Most campus bookstores sell used books that can help reduce this cost. You might also save money by buying or renting textbooks online.

* Leave your car at home. Cars cost more than just gas money. Don't forget about insurance, parking (and parking tickets!) and repair expenses. Walk, use public transportation, and/or ride a bike. You may also want to arrange a carpool with friends if public transportation isn't available.

* Watch the ATM fees. They can add up quickly. Look for a bank with free ATMs near your school.

* Choose the right meal plan. An unlimited plan may be tempting, but you might be satisfied with a less expensive plan. Also, if you've paid for a meal plan, be sure to use it! You're just paying twice if you eat out somewhere else.

* Save on snacks. If you can, avoid buying snacks at vending machines or convenience stores. Stock up at your local grocery store and keep them with you during the day to avoid more expensive and less healthy on-the-go options.

* Consider all the costs of living off-campus. Many Students like the idea of trading dorm life for their own off-campus apartment, only to realize that there are more costs involved than they realized. Aside from rent, you will probably have utility bills and grocery expenses, at a minimum. You may also need to pay rental insurance and property maintenance fees. So before you decide to move off campus, learn what other expenses you'll be responsible for, in addition to rent.

* Use student discounts to your advantage. It's common for movie theaters, concert halls, restaurants, insurance and travel companies to offer steep discounts with a student I.D. Just ask!

* Start saving. A few dollars here and there can make a big difference later in life. Saving and investing your money puts your money to work for you. If you have a job, pay yourself first. Have your bank automatically deposit a set amount from your paycheck into a savings account.

* Keep life in balance. Money management is important, but it's only a means to get you where you want to be in life. Strong values, good friends, and a solid education should all be part of your plan for success.

Practice Good Credit Habits

Even if you don't need loans to pay for College, sooner or later you will probably need to borrow money. Your borrowing and repayment history is tracked by the Financial industry to create your credit score, which helps lenders gauge whether you are a good credit risk. The better your credit score, the easier it will be for you to borrow money and the better terms you will be offered. A good credit score can save you thousands of dollars over your lifetime. Here are some ways to build and maintain a good credit score (typically a score of 700 or higher) and avoid Financial headaches:

* Always pay your bills and loan installments on time. To avoid late fees, note the due dates for bills and installments as soon as you receive them. Keep a copy of all bills and loan payments you make.

* Don't bounce checks. Bouncing a check means writing a check for more money than you have available in your account. Aside from hurting your credit score, banks usually charge you a fee for every bounced check. The fees are automatically charged to your account, which can cause subsequent checks to bounce, leading to more fees, more bounced checks, etc. Bounced checks can lead to real money problems and even get you into legal trouble. The good news is that with a little caution and diligence, you can prevent bounced checks altogether by being aware of the amount of money in your bank account and spending only what you can afford.

* Avoid credit cards. In College, you'll get tons of credit card offers. Your best move? Shred them. Don't sign up for a credit card just to get something for free. As attractive as easy credit might seem, credit card interest can put you in a very deep Financial hole that can take years to dig out of. If you feel you need a credit card or you want to start building your credit history, apply for one credit card with the lowest interest rate available then charge only what you can afford to repay. Also, pay the balance in full to avoid interest charges.

* Don't ignore credit problems, get help ASAP. In spite of your best intentions, you may get in over your head. Credit problems include missed payments, bounced checks, and credit card debt; these problems lead to a lower credit score and a more difficult time when borrowing money in the future.

Sometimes, people mistakenly believe that if they ignore their credit problems, these problems will go away. Instead, their credit problems will only get worse. If it happens to you, don't waste time feeling foolish and ashamed, because you will be in good company; even celebrities have credit problems. So get help immediately, nip credit problems in the bud and save yourself lots of stress. Your College Financial aid office may be a valuable free resource to help you get back on track.
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