Services: College Students

College Students

Resources for College Students

Starting college is a huge financial adjustment.

Managing money is a learned skill, and sadly, most of us have not been taught these skills. This means that most people grow up, get jobs, acquire debts, and pay bills without ever knowing how to mange their money and achieve their dreams.

College students in particular face competitive spending pressures in many ways. For many of you, this if the first time you have been away from home.

These are two things that everyone needs to know:

• How much they earn (most people can tell you to the penny how much their paycheck will be).
• How much they spend (most people have never added up all their living expenses and don't really know what they spend).

Think about your goals. Do you want to be able to live on your own? Buy a car?

Develop your budget based on your income and then figure your expenses

Use your budget sheet for two purposes:

1. To get a snapshot of all your living expenses and income sources so you find out where you stand.
2. To help you know where you need to make adjustments to your spending that will allow you to stay within your income.

Track your spending by recording a list of EVERY purchase day by day. The purpose of tracking is to find out where your money is going. If you keep tracking faithfully, there are going to be some surprises. You will find that you are spending money in ways you never realized before!

After you complete your tracking exercise, construct a new, more realistic budget.

Credit Cards

We live in a democratic society that has the planet's broadest spectrum of credit available to its citizens. Credit is a privilege that should be respected. If you haven't already received a solicitation for a credit card you most likely will soon.

Compare rates and fees carefully. If you are using credit you already have a credit report on file with credit bureaus; make sure it's accurate. See the web resources at the end of this section for up to date listings of cards and their terms and credit report assistance.

One way to control needless spending is to know the difference between a want and a need.

1. We are all subject to advertising. Advertising blurs the distinction between a want and a need. We must be more sophisticated in learning to know the difference.
2. Always ask yourself this question before making a purchase: "How did I get by so long without it?" Often, you will find that you really don't need the item, and can do without it!
3. Remember, if you can wear it, drink it, or eat it, it's not an emergency. Watch out for common spending traps like gourmet coffee shops, nightclubs, lunches and dinners.

Ways to reduce expenses:

• Is less expensive housing available?
  (Consider all expenses of moving)
• Reduce grocery store purchases.
• Can you pack school/work lunches? Give up eating out?
• Reduce energy costs. Simple changes can help.
• Review telephone service costs. Perhaps you can reduce them. If you have a cell phone and want to keep it, maybe you can hold off on getting regular phone service in your room or apartment.
• Can you "trade down" your present car, for one that has lower monthly payments and will cost less to insure and operate? Also, reduce your trips?
• Can you eliminate clubs, other memberships, newspapers, magazines and cable television?
• Can you eliminate most or all costly leisure activities, instead substituting low cost alternatives?
• Cycle or walk, don't drive.

Bank or Credit Union (savings/checking, ATM)

Establishing a checking account is usually the first step towards creating a path to establishing credit.

It may be a good idea, even if you already have an account elsewhere, to open an account at a local financial institution. This can save you money in transaction fees and make your financial services more convenient.

Keep an updated record of all of your transactions (especially those using your ATM card); this can save you from having to pay overdraft fees. Financial services and account fees vary.

Choose a bank with a good online banking system so that you can keep track of your daily transactions. Be sure to do your homework and read the fine print when selecting a financial institution.

One of the first skills that students should learn is how to balance their checkbooks and then - to keep this up every month. This is one of the most common gaps in students' money management skills. Most financial institutions have clear instructions on the back of your statements to help you step by step in reconciling your account.

More Ways to Scrimp and Save

1. Get a roommate
2. Become a resident advisor (RA)
3. Use the university job search/placement services
4. Bag lunch
5. Apply for grants and scholarships
6. Take some units at a community college (be sure they are transferable)
7. Buy used books and sell old books back
8. Look for student discounts at stores and restaurants
9. Call long distance at night or on weekends
10. Communicate by email
11. Use coupons (beware of buying things you don't need just because you have a coupon)

Other Resources:

StudentDebtHelp.org