Freshmen, Take Charge of Your Finances!
Follow these four tips to keep your bank account in the black
The time to head off to college has finally arrived. College visits and lengthy applications are in the past, and you're ready to take on a new chapter in your life. That is, of course, if you can manage your money effectively. To get a handle on your first-year student finances, follow these four suggestions on managing money in college.
- Create a budget. There are several available resources to help you set up a budget, but it will only work if the budget you make is realistic. It's really no different than going on a diet. If the diet isn't realistic, you probably won't adhere to it. So, consider how much money you have, and allocate it wisely. Remember, it can't all go to pizza and movies; you'll need to do laundry once in awhile, too.
- Live like a college student. There will be plenty of time to live the high life—after you earn the diploma. Right now, while you have little or no income, keep your expenses to a minimum. "Live like a student while you are in school, or you will live like a student when you get out," says Soni Williams, director of student financial aid and scholarships at Ohio University in Athens. Too many students borrow more money than they really need, often blowing it on Friday-night fun, she says. Then they spend years paying it back after college.
- Beware of credit-card debt. Ask any college student how many credit-card offers he gets in the mail, and you'll be surprised at the number. Credit cards, now easily accessible to college students, are tempting to students who are forced to live below their means. "Students get solicited with a lot of credit-card offers," says Williams. "But sometimes they don't understand that they'll get a bill they may not be able to pay." Instead, restrict yourself to the use of one credit card for emergency purposes.
- Choose a college you can afford. It's no secret that college is expensive. But too many students choose a college that is way beyond their means, says Williams. She often asks students, "How do you plan to pay for this?" Too often they don't have a clue. If your budget is tight—and even if it's not--consider attending a community college for the first two years or look at four-year state colleges and universities.
Freelance writer Lori Murray lives in Columbus, Ohio, with her husband and three children. In addition to writing for several national and regional publications, she is an adjunct writing instructor at Columbus State Community College. She is also in the middle of a college search for her second child. Lori can be reached through her Web site at www.LoriMurray.com.
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