Financial Tips and Tricks
* Budgeting
Budgeting can be as simple as some
notes on a piece of notebook paper or it can
be done via computer spreadsheet.
What matters is that you learn what is covered
in a budget, how to make one up for
your life, how to change it when cash flow
changes and most important, how to
live on one.
Why? because you will have to manage
your money -- tuition, books &
meal plan and spending money
throughout the semesters.
* Balance A Checkbook
Whether you use printed checks, debit
cards or ATMs, you will have to have a way
to check your activity, know what is
outstanding, and what is your balance. You
will also need to know how to
"balance" what your check register says and what
the bank says you have. If you have
forgotten to enter a check/debit/withdrawal,
there often can be a difference. You
do not want to bounce checks/payments. This
will eventually affect your credit
history/rating.
* Credit Cards
Credit cards are part of the American
culture. What a student needs to understand
is that while credit cards are useful
in certain circumstances, large balances
can become so large that a student
can't pay even make progress paying them
down, much less paying them off.
Don't be late with a payment. If you run into
trouble making payments toward your
your credit card account(s), call the
credit card company and work out a
payment schedule. If you do not become
assertive on behalf of your own
financial health, it will have a negative affect on
your credit history/rating.
Time Out:
Credit card companies target college students both by on-campus booths and early
morning weekend phone calls. They want you to sign up. They don't know or care
if you are not able to handle the eventual debt.
Why is important to get through college and out of college in good financial
health with a good credit rating? Most students are going to leave college with
some student loan debt. Which for the most part, those payments are manageable
over time after employment begins. But credit card debt on top of student loan
debt can be crippling. Not only will there perhaps not be enough funds to send
appropriate payments to all, but without a good credit rating, further loans
will become problematic (examples: car, house, apartment rental). Also in recent
years, employers include credit history/rating checks as part of the background
checks in their application process.
