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Financial Strategies to Save on College

Financial reasons are among the most commonly cited explanations for leaving school – not academics as you might expect! So make sure to keep your financial house in order. Mistakes in any of these areas could cause you trouble later on and be reflected in your credit score. And, believe it or not, potential employers may check your credit score as part of the application process. Many believe your credit rating shows how dependable or responsible you are.

  • Check to see if your college has a Cash Course web site. An example of this is Stanford University’s site - http://www.cashcourse.org/stanford/Default.aspx. The National Endowment for Financial Education (NEFE) makes these tailored web sites available to colleges and universities for their students, and they provide tons of useful information on topics like budgeting, insurance, understanding financial aid, doing your taxes, and more.
  • Create a budget and stick to it (College.gov, 2009; GetRichSlowly.org, 2006).
  • Get help from parents or download this document and use the budgeting tool at the end - http://www.smartaboutmoney.org/portals/1/resourcecenter/40moneytips07.pdf
  • Try www.clearcheckbook.com for help balancing your checkbook, creating a budget, and much more.
  • Use the college budget worksheet at http://financialplan.about.com/library/n_mocolbud.htm.
  • Pay obligations first so if you run short of cash you’ll have housing, food, tuition and fees already paid for.
  • Simple spending principle – don’t spend more money than you have, or even money you expect to receive (GetRichSlowly.org, 2006).
  • Use a debit card instead of a credit card (DaveRamsey.com, 2009).
  • Work in the summer and on breaks (you can make the argument that taking summer school helps you graduate more quickly – as long as you take enough summer school to actually graduate more quickly. You can also make the argument that working in the summer and NOT taking summer school gives you the opportunity to make more money with which to pay for college each year).
  • Plan purchases ahead of time, especially big ones. That way you’ll be less susceptible to impulse buys.
  • If you decide you need to make a big purchase, make yourself wait at least a couple of days. That way, you’ll see if you really need it that bad. You may find you didn’t want it that badly after all and not buy it.
  • If you decide you need to splurge, save for that item, then buy it (Advisor, 2007). Don’t just buy it and worry about paying for it later. Often, while you’re saving you’ll figure out you didn’t really want it that badly to begin with.
  • If you get behind on your payments to a creditor (cable, gas bill, landlord, etc.), make sure to contact them immediately. By being honest and communicating with them, you increase the chances they’ll work with you instead of reporting you to the authorities or credit bureau. Probably, as long as they know where you are and are receiving some form of payment, they’ll be willing to work with you.
  • Decide what’s important to you and spend a little money on that, as a reward. Allow yourself a luxury to spend a little money on once in a while – your car, clothes, a pet, music, gaming (video, not gambling), electronic gadgets, etc. You can’t go without everything, and feeling good about one thing could help you feel better about going without others.
  • Don’t pay for a phone in your apartment if you have a cell phone (this actually drives me nuts when I can’t find a friend’s phone number, but it will save you money).
  • When your cell phone contract expires, re-evaluate if you’re using all the capabilities you’re paying for. Also, choose a free phone instead of one of the new expensive ones, or consider waiting until the phone you want is available for free.
  • Plan ahead and choose the card that’s right for you if you choose to get a credit card. Don’t go with the one that’s convenient because there’s a table in the student union and they give away the cool free gift (like a college t-shirt).

Back to College Spending Page

College Corner

Although it isn't inexpensive, a study abroad experience can be something that sets one student apart from others in the job search process.  Read this article about how students should go about selecting accommodations in London, England for college or study abroad experiences.

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