Money Tips for College Freshmen
A crash course in money management awaits incoming college freshmen, said Jacob Bogage in The Washington Post. Not only are there the “fend-for-yourself expenses” like food and entertainment, the specter of student loan debt makes it more important than ever to lock in a financial strategy early. A budget is the first order of business. Include everything: tuition, books, airfare home for Thanksgiving, even tickets to football games. Use online tools to track spending habits and set accurate goals; Mint.com or eMoney are good choices. Most banks also offer free spending-tracking software. Know what you have to spend, then “live below, not within, your means.”
Every semester comes with the “wallet-crushing” expense of textbooks, said Kaitlin Mulhere in Time.com. The average student spent $563 on books in the 2014–15 school year. The good news is that’s actually 20 percent less than in 2007–08, thanks to the growth of e-books and rentals. The University Network (tun.com) pulls together new, used, rental, and electronic options from Amazon and other sources, while CampusBooks.com analyzes prices and suggests whether a student should rent or buy. One helpful tip: Save your receipts. Students and parents can get a tax credit through the American Opportunity Tax Credit for up to $2,500 spent out-of-pocket on college costs, including textbooks.
One hopeful sign for Millennials’ financial health is that more students are opting out of credit cards, said Susan Tompor in the Detroit Free Press. Only 14.4 percent of consumers ages 18 to 20 had opened at least one credit card in 2012, compared with 33.6 percent in 2007. Credit card companies “are rolling out some attractive deals” hoping to win over more students, but be wary of perks like signing bonuses and 0 percent interest offers. They often come with plenty of fine print. Cards can help build credit, but only as long as the balances are kept low and the bills are paid on time. “It’s way too easy to forget that your 0 percent rate is no longer available at spring break.”
Parents and students should sit down for some “frank money talk” before classes begin, said Teresa Mears in USNews.com. Sort out who will pay for what and under what circumstances Mom and Dad will come to the rescue if the money runs out. And while tuition and textbooks are the most obvious college expenses, don’t forget about food. “People who know how to cook (and actually do) save thousands of dollars over those who eat out all the time.” So, students: Pick up some basic kitchen skills and don’t underestimate the budget-busting perils of all that late-night pizza.
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