Making the transition from high school student to college student can be
confusing. There are a lot of changes and many new responsibilities.
Adapting to college is full of life lessons and the biggest lesson
involves handling money.
Living at Home Is Easy
When teens live
at home there are many financial decisions that they never have to make.
Parents worry about how much to spend on housing, food, bills, clothes
and entertainment. These things never have to cross the high school
students mind.
In college teens suddenly have to handle these things
on their own. If you spend money recklessly you will quickly find
yourself tapped.
Smart money saving tactics can make a major
impact on your finances and your future. Here are some tips and ideas to
make your financial transition that much easier.
Know Your Cost of Living
Make
a list of your mandatory monthly expenses so you understand where your
money has to go. Things like, rent, utilities, transportation,
groceries, parking, school supplies, debt repayment, and student or
activity fees fall in this category.
Once you know where your money has to go each month you'll be able to set up a discretionary fund and a savings plan.
Give Yourself an Allowance
Put
yourself on an allowance for things like entertainment, eating out,
clothing, and special purchases. Stay on budget no matter how tight
things get. It's never too early to start saving money. Even if it's
only $20 a week try to put something aside in a savings account.
Organize Your Receipts
Keep
your bills, bank statements and receipts all in one place. Organize
them by month and by category, for example; rent, bills, and expenses.
Keep them in a safe place. Make sure to go over your bank statements
carefully and keep all ATM receipts. Have your bank return cashed checks
to you or at least ensure that you can see copies of all cashed checks
online.
Become Frugal
Look for creative ways to save money.
Consider carpooling, public transit or enviro-friendly biking as a means
of getting around. Bring lunches and snacks from home. Buy your text
books and lab supplies second hand if possible. Instead of paying a
tutor set up a peer study group in classes that you need extra help
with.
Understand Your Debt Load
Student loans aside there are
other ways that students get in to debt. Credit card companies target
cash strapped students, most of whom are inexperienced with unsecured
debt.
When handled responsibly credit cards can be good things to
have. If you do any shopping on the Internet you will probably need to
have a credit card. Many credit card companies offer theft and fraud
protection. Read the fine print of your credit card agreement to find
out if you’re covered for these things.
It's a good idea to have a
credit card for emergencies or for major purchases like books or a bike
but avoid using plastic for day-to-day spending or for entertainment.
Watch Out for Identity Theft
You
are never too young to fall victim to identity theft. In fact, young
people with little or no credit history are good targets. Keep your
personal information well guarded.
Limit the information you post in
your profiles on the Internet to first name and last initial, gender and
general area of residence. Social networking sites have become havens
for people looking to steal identities.
Never leave ATM or debit
receipts behind, always take them with you. Keep your credit card
numbers private and only use them on web sites you know you can trust.
Always shield your personal identity number (PIN) from prying eyes.
Follow these guidelines and you'll be in good financial shape now and in the future.
Save
Money and Reduce Stress With These Financially Sound Strategies Making
the transition from high school student to college student can be
confusing. There are a lot of changes and many new responsibilities.
Adapting to college is full of life lessons and the biggest lesson
involves handling money.
Living at Home Is Easy
When teens live
at home there are many financial decisions that they never have to make.
Parents worry about how much to spend on housing, food, bills, clothes
and entertainment. These things never have to cross the high school
students mind.
In college teens suddenly have to handle these things
on their own. If you spend money recklessly you will quickly find
yourself tapped.
Smart money saving tactics can make a major
impact on your finances and your future. Here are some tips and ideas to
make your financial transition that much easier.
Know Your Cost of Living
Make
a list of your mandatory monthly expenses so you understand where your
money has to go. Things like, rent, utilities, transportation,
groceries, parking, school supplies, debt repayment, and student or
activity fees fall in this category. Once you know where your money has
to go each month you'll be able to set up a discretionary fund and a
savings plan.
Give Yourself an Allowance
Put yourself on an
allowance for things like entertainment, eating out, clothing, and
special purchases. Stay on budget no matter how tight things get. It's
never too early to start saving money. Even if it's only $20 a week try
to put something aside in a savings account.
Organize Your Receipts
Keep
your bills, bank statements and receipts all in one place. Organize
them by month and by category, for example; rent, bills, and expenses.
Keep them in a safe place. Make sure to go over your bank statements
carefully and keep all ATM receipts. Have your bank return cashed checks
to you or at least ensure that you can see copies of all cashed checks
online.
Become Frugal
Look for creative ways to save money.
Consider carpooling, public transit or enviro-friendly biking as a means
of getting around. Bring lunches and snacks from home. Buy your text
books and lab supplies second hand if possible. Instead of paying a
tutor set up a peer study group in classes that you need extra help
with.
Understand Your Debt Load
Student loans aside there are
other ways that students get in to debt. Credit card companies target
cash strapped students, most of whom are inexperienced with unsecured
debt.
When handled responsibly credit cards can be good things to
have. If you do any shopping on the Internet you will probably need to
have a credit card. Many credit card companies offer theft and fraud
protection. Read the fine print of your credit card agreement to find
out if you’re covered for these things.
It's a good idea to have a
credit card for emergencies or for major purchases like books or a bike
but avoid using plastic for day-to-day spending or for entertainment.
Watch Out for Identity Theft
You
are never too young to fall victim to identity theft. In fact, young
people with little or no credit history are good targets. Keep your
personal information well guarded.
Limit the information you post in
your profiles on the Internet to first name and last initial, gender and
general area of residence. Social networking sites have become havens
for people looking to steal identities.
Never leave ATM or debit
receipts behind, always take them with you. Keep your credit card
numbers private and only use them on web sites you know you can trust.
Always shield your personal identity number (PIN) from prying eyes.
Follow these guidelines and you'll be in good financial shape now and in the future.
By Mike Hardcastle
Teen Advice Expert
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