Q: When are you old enough to make decisions about money?
A: As soon as you have some.
Credit cards and indiscriminate spending can mess up any student's life. Don't fall into the trap that plagues young people - the temptation to buy things on credit because you're going to pay them off later. Too many students graduate with unnecessary debt (school loans aren't unneccessary) hanging over their heads.
I've said it before on this blog: The first person that a student leader must lead is him or herself. One of the areas that will make or break your leadership is in the area of finances. Student leaders can't allow poor spending habits and bad money management to take hold. It will mess up the balance of their lives and cause a lot of stress that could have been avoided.
About.com has a few good tips in regards to keeping your finances in check. You can read the entire article here. Here's some of the helpful ideas excerpted from the article:
- Don't take a credit card to college unless you're sure you can resist the urge to use it for anything but emergencies or items you can (and will) pay off at the end of every month. It's far too tempting to use it for trivial items that will add up amazingly quickly. If you can't pay the balance off when the credit card statement arrives at the end of the month, you'll end up paying even more in interest charges.
- Get a debit card. They're convenient. They give you instant access to your money. They limit your spending to what you actually have in your account. This is a good thing.
- Shop around for the best cell phone deal. Avoid exceeding your free minutes. Calls over and above your allowable minutes are very costly.
- Buy used text books. Who cares if they're not perfect? You can save a substantial amount of money over the course of your college education.
- Skip spring break or vacation close to home. Many students come back broke from spring break, which can cost $1,500 or more. If you work during the summer earning $10 an hour, it will take you a month and a half to net enough money to cover your spring break expenses. That leaves only a month to earn money for the next school year.
- Set up a budget. It not only helps you stay on track, it also gives you a feeling of control and the peace of mind of knowing you have enough money to make it through the school year.
- Find ways to cut expenses. Browse local newspapers for coupons. Limit booze and cigarettes, which are two of the most expensive habits you can have. Find movie theaters that offer reduced prices, or buy movie coupon books that offer discounts. Take advantage of free or inexpensive activities on campus. Limit your purchase of CDs. Plan ahead so you can avoid incurring ATM fees. Leave your car at home and walk whenever possible.
As an educator, I was inspired to come across your site and read that great line "the first person a student has to lead is himself". Pretty basic, but it needs to be said and resaid and applies to us all. The issue of credit card debt is so huge in this country that it's necessary to address it at the pre-entry level.
Posted by: thebizofknowledge | September 18, 2006 at 07:30 PM