August 17, 2017
Written by Gabriella Allen, La Casa de Esperanza
As summer transitions into fall, many people move from planning and enjoying summer vacations to thinking about class schedules and homework. Some students are returning after already becoming familiar with college life, others are experiencing college for the very first time.
Here are some helpful financial tips for all students to start the 2017 school year off on the right foot:
Start Saving: Whether you are a first-time freshman or a seasoned senior, it is never too early to start saving. Here are some tips to get started:
- Save on shopping by utilizing student discounts wherever you can.
- Save on expensive items like furniture for an apartment or dorm room by buying second-hand. Stores like Goodwill and St. Vincent De Paul Thrift Store are great options for finding what you need at deeply discounted prices.
- Buy used textbooks or see if your school’s bookstore has a textbook rental program. If not, try websites like Amazon or Chegg to rent your textbooks at cheaper prices than buying brand-new.
- Get a part-time job, especially if it is a good fit with your life and career goals. Compare local job opportunities with your school’s work-study program if they offer one.
Be Careful with Credit Cards: Often, parents give their children a credit card, especially if they will be traveling far from home. This can be designated for necessary purchases such as food and gas or purely for emergency purposes. Regardless of the purpose, it is important that both students and parents talk about responsibly using credit cards while in college.
Parents:
- Before your student leaves for college, set ground rules for what the card can and cannot be used for.
- Take advantage of the ability to set a low credit limit for the card.
- Set up a plan for how the monthly bill is to be paid if the card is being used for regular expenses.
Students:
- Beware of the many credit card offers you may receive while in college. Credit card companies often target young adults as new customers with attractive offers. These cards often come with hidden fees and high interest rates.
- If you open a credit card, do not be afraid to ask questions and read the fine print.
- Credit cards are not free money. If you don’t pay off your balance every month, you accrue interest. For example: if you carry a balance of only $1,000, at 16% interest you would owe an additional $160 in interest after one month. Remember, you want to graduate from college with as little debt as possible.
- Think before you buy. Do not let the excitement of becoming independent cloud your financial decisions.
Protect Your Finances: Having a checking account, savings account, and credit card will increase your risk of identity theft. Protect yourself with these strategies:
- Check your bank statements each month to catch fraudulent activity, especially if you frequently make purchases online or use a debit or credit card.
- Don’t share PIN numbers, credit card numbers, etc. with friends or classmates. A 2014 study found that 550,000 fraud and identity theft victims reported that their information was stolen by someone they knew.
- Check your credit report regularly to monitor progress you make on your credit and protect yourself from fraud or identity theft. Remember, everyone can pull one free credit report each year from each of the 3 credit bureaus. You can also check your credit completely free with a financial coach at any time at La Casa de Esperanza in Waukesha.
By following these simple, but significant, financial tips, you are setting yourself up for future success. For other questions or to meet with an experienced financial coach, contact La Casa de Esperanza today!