Smart Borrower Center
Tools to help you borrow better
By the time next June rolls around, the average freshmen entering college this fall will have racked up $20,000 in debt, with more than 15 percent of that owed to credit card companies, according to student loan giant Nellie Mae. You don’t need a calculator to figure that if you keep up with that average, you could end up graduating into a boatload of debt. But if you aim to be an above average student – at least from a financial perspective – you can keep that debt to a minimum. We’ve put together a few tips to help you score an “A” in Personal Finance 101.
1. Get organized
You need a designated place to keep your financial records while you’re in college. But you don’t have to get fancy with it: a shoebox is all you really need for storing ATM and purchase receipts, bills, cancelled checks and tax records.
2. Protect your personal information
Keep your ATM, credit card and checking account numbers to yourself. A paper shredder is a good investment for disposing of financial records properly.
3. Open a checking account
Shop around for a bank that has convenient ATM locations and low – or no – fees. And if you could pass high school algebra, you can learn to balance that checkbook.
4. Get a credit card
But forgo the extra credit you will be offered by credit card companies looking to hook you while you’re young. One card with a low interest rate, a low (or no) annual fee and a low credit limit is all you need. Start building a great credit record by using it sparingly and paying off your monthly bill – in full and on time.
5. Stick with your meal plan
Don’t eat your way into debt. Buy an on-campus meal plan and use it as much as possible. Avoid vending machines and costly dining hall alternatives, and remember that grocery stores are almost always cheaper than convenience stores.
6. Talk to your roommate about money
Agree in advance about how you will split the phone and utility bills and whether you’ll be sharing food and other in-room extras.
7. Money woes? Seek assistance
Financial advice will never be cheaper than it is when you are a student. Most colleges have on-campus financial aid officers who you can talk to – for free -- about the best way to manage your financial situation.
Published on August 27, 2007