Heading off to college is extremely simply awe-inspiring.
You are psyched. This may be your first time on your own.
You’re experiencing freedom like you never have before.
You’re meeting amazing new people everyday. You have
so many social opportunities to go out and have a blast you
don’t know what to do with yourself. So you do it all!
Soon you may realize that you don’t have the money
to back up all of this excitement. You need to BUDGET. (I
realize this isn’t much fun but please read the info
below to help you to keep your head afloat in the financial
world.)
Needs vs. Wants - This is a tough one. Most college students
face the challenge of living on limited funds. Track your
expenses for one month and create a chart that lists your
habits. This will help you to get a handle on your spending
patterns. Highlight those areas that are needs and evaluate
the remaining items to find places where you could spend
less. This simple exercise will help you to prioritize your
spending. Remember that during the semester you may need
additional books, laundry money, school supplies and personal
items. Living without the new CD will be easier than living
without toothpaste!
Develop a budget and stick to it - Make a list of your
current financial obligations, daily living expenses,
summer savings,
work study and part-time job income. Determine how much
you can afford to spend by subtracting your obligations
and expenses from available income and savings - remember
to keep some "emergency" money set aside!
Speaking of Emergencies - Having a credit card can be important
in case of real emergencies. However, you must realize
that running out of pizza, while definitely traumatic,
is NOT a real money emergency. Unnecessary use of credit
cards creates a cycle of indebtedness that is very difficult
to break.
They’re after me! You may find that credit card
companies aggressively market to you. Resist! Be strong!
Recognize
that making a purchase using a credit card is like taking
out a loan. For every dollar you cannot afford to pay back,
you will pay a percentage of interest - some extending
up to 23 percent until your total bill is paid off. If
you already
have credit card debt, the best investment you can make
is to pay off the balance. The minimum monthly payments
are
usually reasonable, but if you only pay the minimum, it
could take upwards of 20 years to pay off a $1,000 balance!
Remember,
ignoring debt will affect your credit rating.
Got Credit? A credit report is your personal financial
history. It is a record of how well you repay your credit
cards and other debt. There are three major reporting agencies:
Experian, Trans Union and Equifax. Checking your credit
rating annually after graduation is a good way to ensure
that all of the information has been updated. Realize that
credit reporting agencies can sometimes make mistakes.
Make sure the information about you is correct on all of
your accounts. If you find a mistake or have questions
about the report follow the instructions included in your
credit report. The fee for ordering your credit report
varies. Contact the companies through their phone number
or web site for more information.
Experian
National Consumer Assistance Center
1-888-EXPERIAN
www.experian.com
Trans Union Corporation
Consumer Disclosure Center
1-800-888-4213
www.tuc.com
Equifax
Information Service Center
1-800-997-2493
www.equifax.com
Phone Home - Sometimes! Those occasional calls to friends
and family can be quite expensive. Take advantage of the
free Internet technology at your campus' computer lab to
email the family and friends. If you have an instant messenger
account, use it! Or you can use some of that stationary
you got for graduation and write a letter to your friends.
You'll soon find out that your buddies at other campuses
will be psyched to have something besides late notices
from the library in their mailbox!
Save on Books - Buying used textbooks can mean tremendous
savings for you. Check the school paper, bulletin boards
and campus bookstore for opportunities to buy good books
cheap! Also, check out sites like www.varsitybooks.com for
bargains on-line.
Helpful Link
Mapping your Future
http://mapping-your-future.org/features/dmtensteps.htm
