Money management for college freshmen
The National Endowment for Financial Education has the following tips for college freshmen:
Turning your dorm room upside down looking for your course list probably won’t go over too well with your roommate. Organize your information now into one central location to avoid issues later. Important documents to keep should include transcripts, current health insurance policy, medical bills, renter’s insurance policy, financial aid information, loan documents, W2s, pay stubs, and past tax returns, among others. File these materials as you get them and you’ll avoid mounds of papers piling up on your desk.
Do you know what you’re paying for your college education? Even if your parents cover tuition and room and board, you’ll still have to pay for a few expenses. Seek out a sophomore or junior to talk to about what they paid for books, food, and other expenses to get a better idea of what lies ahead. For a budget worksheet to help with the numbers, check out the back of the free booklet, 40 Money Management Tips Every College Freshman Should Know, which is located at www.smartaboutmoney.org/40moneytips.
If used incorrectly or irresponsibly, credit cards can burden you with a lot of debt for a long time. When shopping for a card, look for one that has no annual fee, a low interest rate and a 20- to 30-day grace period (the amount of time you have to pay before interest is charged). Avoid cards that charge a processing fee or have low introductory interest rates that shoot up after a few months. Check out Bankrate’s credit card comparison tool at www.bankrate.com for help.
Separate needs from wants. Before you buy something, ask yourself: Can I live without this? You’ll be surprised how many things fall under the “I really don’t need this right now” category. Try to buy only what you need right now. When you are out of school and earning a good salary, you’ll be able to afford more of the things you want. But for now, it’s time to revel in the poor college student cliché.
With identity theft on the rise, take care to protect your personal information. Don’t give anyone your Social Security, credit card, or bank account numbers unless you know who they are and why they need them. If you are unsure, ask the person to send you a request by mail instead of asking for it over the telephone. Shred or tear up papers that have any of those numbers on them, as well as pre-approved credit card offers. Also, always review your credit card and bank statements for anything suspicious. Lastly, if your credit card has been stolen, call the security number of your credit card company and cancel the card immediately.
Being sick isn’t fun, but it’s worse to be sick and not know how your health insurance works. Before you head off to college, talk with your parents or guardian about your health insurance plan, what it covers, and where you can go for help when you’re at school. Also, check with your university or college about health resources on campus.
Make school your first job. A college education will give you the biggest payoff down the road so don’t let anything else interfere with it. Go to class, participate in discussions, get to know your professors, and make sure you get everything out of every class. After all, you’re investing in your education.
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