Finance tips

1. Chose the right bank. You’re in a college town, chances are there’s going to be at least one bank that targets college students with free checking, no account maintenance fees, online account management with free online bill pay, and an ATM card. That’s what you want.
2. Get every last cent of financial aid you’re entitled to, but keep things in perspective. Spending a week working on an essay that gives you a one in a thousand chance of getting a $500 scholarship might not be a good use of your time. Working those 40 hours might be a much better investment. Doing both would be even better.
3. Keep your grades up. My college gives merit based scholarships (no financial need required) to everyone with a certain grade point for their first two years of school. The higher your grade point (or SAT score your freshman year) the higher the scholarship.
4. Need a loan? It might make sense to try working one out with your folks if you can. Some parents, most perhaps, are going into debt to send their children to college. Appreciate it. It won’t be long now until you’re paying for everything yourself and you’ll realize the burdens a loan entails. Appreciate it.

Your parents may be financing your education with a home equity loan, which at the current rate is much cheaper than financial aid loans. So check rates, especially if you don’t qualify for a deferred loan. It might make sense to work out a loan with your folks at the lower home equity rates. Treat it like a real loan tho, with consistent payments paid on time. They’ll be encouraged to see you acting responsibly and who knows, may even defer payments or interest until after you graduate.

5. Get a credit card. To use your credit card or not, that is the question. Whether ’tis nobler in the mind to suffer the slings and arrows of outrageous finance charges and late fees, or to take arms against a sea of overspending, by not having easy money available whenever you want it? Translation: credit cards are too easy. When deciding if you need something or not, the decision is a lot easier when you don’t have any money in your wallet. With a credit card, you always have easy money available and you may find yourself buying more than you would otherwise. So, in my book, regardless of how disciplined you are, if you’re trying to save money, then leave the credit card at home and just use it to get money-back on airfare home and other big ticket, necessary items.

Geezer input: This will all change once you’re out of school, making real money, and have developed those money saving habits that will serve you a lifetime. Then credit cards, paid off completely each month, are a great convenience. It makes it easier to track your expenses and with many cards you can get a little cash back as well. But that’s down the road folks. For now, being barely afloat, you’ll save more if you keep that credit card hidden away at home.

6. When you do use your credit card, make sure you pay it all off, on time, every month. $35 late fees are not uncommon now, and finance charges on unpaid balances are ridiculous. And perhaps even more importantly they can affect your credit score which will follow you thru life and determines in part how willing lenders will be to give you loans and mortgages and at what rates. In addition, once you’re in that “pay less than the total” cycle it can be real hard to escape. Just look at the huge amount of online companies whose sole purpose is to help folks manage their credit card debt. I cannot overemphasize how important it is that you handle your credit responsibly.
7. Where should you have your credit card statements sent? You sure don’t want them sent to where you’re not or you risk paying outrageous late fees and confiscatory interest.
   • Email statements – The banks love to promote this for obvious reasons. Might work if you paid attention, I don’t.
   • Sent to your permanent residence. Assures you’ll get them during vacations. But if mom and dad don’t forward them you can be in hot water in no time. I speak from experience.
   • Sent to your school address – In my opinion this is your best choice, but you must remember to forward them during long vacations (Christmas and summer for sure). It’s actually easy to do online at https://moversguide.usps.com/ To be honest tho, I’m not sure this works well with dorm addresses. Anyone?
8. Get a job. You’ll make new friends, earn some extra bucks, and break up the routine a bit. Just try to balance things. No point in working if it keeps you from getting done what you’re there to do. School usually costs much more per day than what you can make at a part-time job so don’t let work interfere to such an extent that you need to extend the time you spend in school. Make sure you have enough time to study.

And, I hesitate to say this because I suspect there are folks who’ll use this as an excuse, but also make sure you have enough time to enjoy your college experience. Chances are you’ll never again be in a situation with so many people your own age, with similar interests, and in an environment with so much opportunity. Make friends, have fun, study hard, and if there’s enough time (and there probably will be) then get a part time job.

9. Look for jobs with perks: Free or discounted food. employee discounts. flexible hours. people your own age working there. cool uniforms. health care. bonuses. severance packages. stock options, retirement plans, etc…
10. Here are some job ideas for your consideration:
    • Tutor. Smarter than the average bear? Put that knowledge to work and help out those who value your expertise. Might meet some interesting new people as well.
    • Give haircuts. - make a few bucks, meet new people. Geezer input: I was amazed to find there wasn’t a single flyer in my son’s huge dorm advertising haircuts on the cheap. Seems to me to be the perfect job, especially for the ladies. It’s a great way to meet new people and you work when you want to. Where else can you chat with someone new, one on one, for a half hour and get paid for it. In addition, if you can do a couple of haircuts an hour at 5 bucks each you’ll make more than you would at most other jobs. And if you’re good you can work as little or as much as you want.

Suggestions? Please let me know in the comment form.

Later.