The new school year is upon us and soon many high school graduates will venture into a new segment of their lives, the college years. In addition to adjusting to the heavy course loads and assignments, students must learn to handle their finances in a mature manner by using good judgment and smart spending habits. The following tips can help college students adapt to their new lifestyle in a financially smart manner.
Create a Personal Budget
Any personal finance expert will tell you that creating and following a personal budget is the smartest way for a student to become financially healthy. A personal budget spells out exactly how much money you have and what your expenses are. This method will limit students from overspending and will also teach them to live within their means and not rely on credit cards.
Tuition Expenses
All students should apply for scholarships and grants, which alleviate some of the financial pressures stemming from college related expenses. Students should also shop around for student loans, looking for the best interest rate. Students should choose a loan program that charges interest only after graduation. These types of loans save students thousands of dollars in interest charges.
Textbook Expenses
With an average textbook priced above $100, college students should look into buying used textbooks from other students or bookstores. Students should read campus fliers and student newspapers for possible textbook deals. Internet based textbook retailers also allow students to sell, buy and trade textbooks with other students.
Protect Your Identity
Protecting sensitive personal information is been a major hurdle for many college students who reside in campus dorms. According tobankrate.com, 49 percent of college students receive credit card applications on a daily or weekly basis and almost 30percent of students throw out credit card applications without destroying them. Also, since most of the universities use students’ social security number as the primary student ID number, these students face an additional risk of losing their personal information to identity thieves.
To minimize this threat, students should refrain from storing social security cards, passports, birth certificates, PIN numbers and other important documents in their campus dorm rooms. Students can also request universities assign a random student ID number rather than using their social security number.
Go Easy on Credit Cards
Nowadays, most college students have at least two credit cards and almost all of them use them for everyday purchases. Credit cards are useful and efficient as long as you pay off your balance in full each month. If you have a habit of charging everything to your card and pay off only the minimum payment due each month, you will end up with thousands of dollars in credit card debt when you leave college and will be paying them off for years. Why would you want to be paying for something years after you purchased it and for a lot more than you paid for it?
Other Ways to Cut Back on Expenses
Students can cut back on everyday expenses by looking for good deals around campus. Almost all merchants near major universities offer discounts to students and these savings can save hundreds of dollars. Most universities offer students free gym access and medical services, which can be quite expensive off campus. Speak to a college representative about student deals such as transportation passes, discounted calling cards, discounted movie passes and free wireless internet access. Most students don’t even know these things exist and end up paying more than they need to.
Disclaimer: The information outlined in this flier may not be suitable for every individual, and are not guaranteed or warranted to produce any particular results. No warranty is made with respect to the accuracy or completeness of the information contained herein, and DebtWave Credit Counseling specifically disclaim any responsibility for any liability, loss or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this flier.
