eFinancial Portals

Here are 25 things you need to know about managing your financial life while in college. If followed, you will leave school with your degree and little or no debt beyond any college loans you may have taken out.

Funding College

1. Student loan interest rates are set every July 1. Check with your financial aid office in advance, and ask about rates. If they know that interest rates are going up, contact your lender a couple of weeks in advance, and try to lock in at a lower interest rate. Doing so can save you thousands of dollars over the years.
2. Always be on the lookout for scholarships and other free money. College is expensive, and the costs will continue to rise year over year. In addition to completing your FAFSA every year, be sure to also look for scholarships for which you may qualify. Search free resources like: Scholarship America, FastWeb.com, ScholarshipExperts.com, Federal Student Aid and Students.gov. Use student loans as a last resort after you have exhausted all grants, work-study and other free resources.
3. Watch of for scholarship scams. Many of these scams require a fee upfront to obtain more information about the scholarship. Often they guarantee you will get a scholarship though you have done nothing to actually earn this scholarship. This should signal a warning in your mind as most scholarships require you to follow a series of steps to apply. Remember the old adage: “If it sounds too good to be true, it probably is.”
4. Don’t throw away student loan consolidation letters. While you may not need it at a specific time, you will likely need it in the near future. Save the offers and compare rates later. You can even play one lender against the next by calling and telling them that another lender is offering a certain set of terms and asking if they can beat it.

Money Management

5. Make money management a priority. To do this, you need a budget or a spending plan. If you don’t want to use pencil and paper, our Budget Planner will work just fine. Know at all times what is coming in and what is going out. If you have more going out than coming in, you have a problem. This means you are relying on credit to supplement your college life.
6. Keep your personal finances in order. Knowing what is coming in and going out is only the beginning. Do you have other monthly bills? Do you have banking or investment accounts? Do you need to complete a new FAFSA form? Do you store important receipts, warranties, and other important documents? Be sure to stay on top of these things on a regular basis, and schedule time on your personal calendar to deal with each.
7. Save your receipts. This simple action can save you lots of money over the years. For example, when you have your taxes prepared, you may be eligible to deduct any expenses related to school and career planning. It also helps you identify spending trends and when there is a need to save money, you can pinpoint where to find it.
8. Open an investment account early. With website like E*TRADE, ShareBuilder and others, you can begin to put some of your extra money to good use. By starting early, your money can grow to sizeable amounts over time.

Avoiding Debt

9. Don’t make big ticket purchases unless you have the money to pay for it now. Doing so will begin a downward spiral of living in debt. Living in debt is no fun, and you will always have this extra weight on your shoulders in addition to your full class load. Therefore, if you have to have that flat screen TV, save up for it, wait for a sale, or try to find last year’s model at a fraction of the cost.
10. Don’t buy a new car while you are in school. Many students make the mistake of wanting an economically reliable car while in school. Therefore, they buy an inexpensive new vehicle and commit themselves to up to six years worth of debt. This is not a good idea. Instead, try to save up $2,500 - $5,000 and find a reliable used car that you can pay for (taxes and tags included) with the money you have saved. You can find many reliable cars within that price range. Even if you have to spend up to $1,000 a year in maintenance and repairs, you will still save more than had you purchased a new car.
11. Don’t go into debt purchasing clothing, jewelry and other consumer goods. Clothing and department stores are notorious for offering you 10-25% off at the register for opening a credit account. It’s easy to get caught up in the discounts, and before you know it, you have charged more than you have to pay back. Instead, make planned clothing purchases once or twice a year, and never go window shopping as you will end up buying, albeit at a discount.

Banking

12. Always seek banking accounts with no monthly fees. Banks make their money off of the interest they earn by either investing or lending your money to other people or businesses. Therefore, many banks offer accounts with no monthly fees. That should be your first goal.
13. Avoid ATM fees by banking with a local or national bank with a local presence. ATM fees can add up to as much as $20 or more a month. That is money that can be used on meals and other college expenses. If you will be on campus for most of the next four years, it would be a good idea to bank with a local bank, credit union, or a national bank with a local presence. Be sure that there are ATMs on or near your campus.
14. Never bounce checks. First, this is a crime and you can be arrested. Secondly, hefty fees can be assessed, as much as $35 or more per check. Lastly, this can affect your credit history and your ability to open new accounts at other banks. To avoid bouncing checks, always use your checkbook register to confirm how much money you actually have in your account at all times. Be sure to also read your monthly statement and compare it to your check register to confirm there are no transactions of which you are unaware.
15. Speak with a free financial planner at your bank. Financial planners can offer valuable advice on getting your financial house in order early. They can make recommendations about steps you can take while in college that will yield big benefits later. The average visit length is thirty minutes to one hour. Use this time and take good notes. Then set up a time to meet again, perhaps every six months or once a year.

Credit Cards

16. Manage your credit card expenses. While some experts will tell you to stay away from credit cards altogether, this is not the right approach. Instead, you want to allow credit cards to work for you by helping to build your credit worthiness while in school. If you only use your credit card when you have the money to pay it off, then do so. The only way you can build credit is to have credit. Keep in mind that you will likely want to purchase a car or home after completing college, and using your credit card(s) responsibly during your first four years of college will help you to qualify for more favorable rates than if you don’t have any credit. Just remember to be responsible with credit cards.
17. Check your credit report once or twice a year. As you begin the process of building credit, it is important to check your credit report at lease once a year. You should also know your credit score. Monitoring your credit helps you to improve your credit; it’s that simple. You can obtain one free credit report every year from the following three major credit bureaus: Equifax, TransUnion, and Experian.
18. Protect your identity at all times.

Saving Money

19. Always ask for a student discount. Many retailers understand that college students don’t have a lot of money and offer significant discounts. They also understand that if you patronize them in college, it is likely you will continue to do so after the college. Therefore, it’s too risky not to offer discounts. Always keep your student ID card on your person and ask for discounts wherever you go.
20. Need a laptop or computer? Before buying a new one, check with your school, other local schools, and area businesses. Often you can buy a used one at a great price or even better, you could get one for free as schools and businesses are always upgrading computers.
21. Try to always use your school’s free resources first. Before buying your own printer and paper, determine if your computer lab’s printer is free. If so, you can always save documents to be printed later. Look for other resources your school provides that you might consider purchasing for yourself as well. Doing so will allow you to save money for other expenses not covered by your school.
22. Don’t always buy the latest edition of the book. Often the latest edition only includes a new cover and some new images throughout. Contact your professor to determine if there are any major changes and if you can use an older edition. If not, buy the older edition. You can also check with your fellow students to determine if anyone is selling their books. The best way to do this is to visit the class that you have to take next term a week or two in advance, and let students know you are interested in buying or borrowing the book when their class ends.

Career Planning

23. Take a campus job while you are in school. Over and above the money you earn while on campus, you are actually establishing a solid work history. This will be invaluable as you pursue your career after graduation.
24. Begin looking for your ideal job while you are in school. Think waiting to start your job search until after you have finished college is a good move? Well, it’s not. Students who have jobs waiting on them after graduation usually have already worked for or have contacted the employer well before graduation. This is even more important during turbulent economic times. Try to secure an internship—for free if you have to. Once on the job, learn all you can about that job and try to impress as many people as you can with your hard work and knowledge. Be sure to communicate the fact that you are seeking full-time employment after graduation.
25. Pursue credentials and other licensing in your spare time. Many occupations require more than a college degree today. Therefore, whatever your chosen occupation is, determine what specific credentials you will need beforehand, and, if possible, begin to work on them during your spare time. For example, if you are going into project management, you will likely need the Project Management Professional (PMP®) credential. While still in college, you can learn about all of the requirements in order and begin working to fulfill them. You can either look for a job on campus that has a project management component which can go toward the requirements needed to obtain credentials later.