Financial Information for College Students
Whether you are college student who is already working, or seeking that first entry level job, it is important to manage your finances. Because you're young, you might think there's no harm in spending money on the things you want in life. But ask yourself if those things you want are really things you need right now. For college students who don't have an entry level job, you may be more vulnerable to credit card companies looking to take advantage of your need for some type of income. However, before any college student gets a credit card, there is some information to consider.
A couple of websites offer some tips and rules when it comes to owning a credit card. When it comes to choosing a credit card, consider one for:
Building good credit- can help with future significant purchases (like a car)
Convenience- you won't have to carry a large sum of cash around
Freebies- allow you to earn points toward some type of reward
To carry a balance- allows you to transfer a credit card balance to another card, not that you want to carry a balance on any credit card
Here are some rules to follow once you do get a credit card:
- Beware of teaser rates
- Stick with one credit card
- Pay in full every month
- Pay on time
- Avoid cash advances
- Protect your credit history
- Don't exceed the credit limit
- Review statements carefully
- Report a lost or stolen card immediately
- Protect personal information
For college students who already have entry level jobs, it's important to keep up with your personal finances on a regular basis. Two ways to do this are by opening up a bank account and by creating a budget. The type of bank account you need depends on what is the best option for you. There are a variety of accounts to help you watch your money, including:
- Savings account
- Checking account
- ATM
- Debit card
- Credit union
- Banking online
It is also a good idea for students to create a budget. A budget allows you to determine all of your expenses to see exactly how much money you're spending in a certain amount of time. These expenses may include bills, food, entertainment, etc. Compare your monthly income to the total amount of expenses to see if you have money left over, or not enough; adjust your budget as needed. A good budget can allow you to have enough money for all of the necessities, and hopefully, some to save for later.
All college students can benefit from learning how to manage their personal finances. Not only will they start securing their financial future but also become more responsible for themselves once they obtain an entry level job.
Sources
The Morning News
http://www.practicalmoneyskills.com/english/at_home/life_events/college/credit.php
http://www.practicalmoneyskills.com/english/at_home/life_events/college/personal.php
http://www.practicalmoneyskills.com/english/at_home/life_events/college/budgeting.php
http://www.calcpa.org/Content/consumers/ask/2002/mm.08.01.aspx
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