Budgeting ABCs For College Students
Whether you are a first time student or college veteran, it's smart to develop a financial game plan for everything from credit card use to entertainment.
ACEC offers these tips to aid young collegians avoid financial pitfalls:
- Develop a realistic budget. Make a list of the things you’ll have to buy and what they will cost. Compare this with what you have to spend from savings and such sources during the school year as a job, scholarship or parents.
- Track your finances. Keep track of your income, expenses and debts in a small ledger or on a computer, if you have one of your own. This will help you know where you stand and also help in avoiding any unpleasant financial surprises.
- Evaluate all "great deals." Your school mailbox will bring a host of offers to buy everything from magazines to CD’s. Ask yourself if these offers fit your "must have" budget. Check the fine print on these deals before buying to fully understand your total costs and future obligations.
- Shop around. You can achieve savings on class needs by checking out all possible sources, including the Internet. Look for used textbooks and lab equipment both on and off campus and shop for items like pens and notebooks at discount stores. Check with your professors as sometimes-older additions of texts can still be used. A note of caution: Make certain used texts are still current for your courses before buying.
- Computers. Before purchasing a computer for school or pirating your sibling’s machine, check to see if your college or university has computer resources students can use. These may be located in dorms, computer labs or student centers. Even if you have your own computer, you may be able to save on items like printers by using the computer resources of your school.
- Credit cards.
- Shop around. As a student, you'll likely be offered any number of credit cards. Evaluate these offers carefully and be sure you fully understand all the terms and conditions before you sign up. Shop around to get the best terms. What is the interest rate on any unpaid balance? Does the card have an annual fee and if so, how much is it? Are there charges for cash advances?
- Use wisely. Live within your budget. Try to pay off your balance promptly each month to avoid interest charges. Remember, the more you owe the higher your interest payments and the longer it will take to pay off your balance.
- Security measures. Keep a record of your credit card numbers at home or in another safe place. If a card is lost or stolen, notify the card issuer promptly. Check your statement closely to make sure it is accurate and that your card hasn’t been used fraudulently. If your card uses a personal identification number (PIN), make sure others cannot easily decode it. Don’t use easy to figure out codes like your birthday, phone number or the last four digits of your social security number. And remember, if you write your PIN down; keep it separate from your credit cards.