"First-Year College Students Financial Checklist- Part II" - August 2, 2009

Last week, I began a discussion about the top 10 tips for college students. If you’d like to review that column, go to the Resource Center at www.welchgroup.com then click on ‘Stewart’s Column’. Here are the remaining 5 tips:

Credit card companies are notorious for coming on campus and enticing students with free T-shirts for applying for credit cards. They know that the students will use, and often abuse the cards only to eventually be bailed out by parents. Own no more than two cards and save them for emergencies unless you are certain that you can pay off the full balance each month. As with the use of the ATM machine, be sure to keep a running balance of credit card charges. The easiest way to do this is to enter ATM withdrawals and credit card charges directly into your check register as if you had written a check and then subtract the balance. This will allow you to keep an up-to-the-minute record of your cash balance. Responsible use of credit cards is a great way to begin to build a good credit history.
If you get funds from student loans, be sure to deposit the money in a money market account so that it is earning at least some interest. Current interest rates are low but it still pays to shop around. If you will not need a portion of your funds for several months, you may get a better yield by buying a certificate of deposit (CD) from a bank. To find the highest rates, go to www.bankrate.com.
Identity theft is a multi-billion dollar business and you’ll want to make sure that you don’t become a victim. The typical college students have roommates, suite mates other students roaming through their housing. Be sure to keep all of your passwords, bank account statements, and credit cards well guarded. Also, be careful what information you list on the various social websites. It’s best not to list your exact birth date and definitely guard your Social Security number with your life! Never leave ATM statements behind and be aware of your surroundings when accessing cash from the ATM. There have been cases where the next person in line used their video cell phone to steal a PIN number.
Get a part-time job. Even if you don’t need the money, this is still a good idea. Start by speaking with your professors and department-heads. I got a job as a grader during college and it proved to be a great experience allowing me to get to know my professor on a whole new level. Having some extra spending money that I earned was also a nice benefit.
Network with abandon. Building relationships is just as important as getting a college education. My advice is to ‘be a joiner’ and active participant in as many organizations as time and interests allow. Opportunities abound including student government association, academic clubs and social clubs. The more people you connect with, the more enjoyable your college experience will be and that success will likely translate into financial success after college.

Have a great college experience and make sure that you also learn about personal finance! These lessons will serve you well your whole life.

First-Year College Students Financial Checklist - Part 1 - July 26, 2009

With summer fast coming to a close, many once high school grads are about to declare ‘independence day’ as first-year college students. Along with increased freedom comes increased responsibility. You can offer a helping hand by sharing these 10 top financial tips with your favorite college student:

Whether you are paying your way with a part-time job, student loans or receiving an allowance from your parents, it is time you take control of your money by setting up a budget. The best way to do this is by using a software application such as Mint.com. This software downloads, categorizes and graphs all of your spending automatically everyday. You’ll know where you’re spending without spending any effort!
As soon as you get to your school, open a checking account. Many college-town banks offer free checking for students and some may even offer $25 to $50 to open an account. If available, be sure to get overdraft protection. This feature allows you to avoid expensive fees for bounced checks. You don’t plan to bounce checks? I hope not but get the coverage just in case! Also, choose a bank that has convenient ATM locations so you won’t be paying fees when you use another bank’s ATMs. Be sure to keep a running balance of all expenditures, including ATM withdrawals. This will help make certain you don’t have bounced checks!
Class text books can cost you hundreds of dollars…or not. Once you know what text books you’ll need, do an online search for discount new books or used books. Amazon.com is a good place to start but there are many other sources as well. At the end of the semester, you can then sell your books online and recoup part of your costs. One of my associates sold a $170 retail book for $70.
Get in the habit of saving some money each month. This is perhaps the most important habit to establish if you want to become wealthy once you venture into the real world. Even if you are saving only $25 to $50 per month, this is a great start. Have your bank set up a money market account for this purpose and have the funds automatically transferred from your checking account each month. This automated system is the key to creating consistency in your savings program. If you have earned income, a ROTH IRA is an excellent choice.
If you are renting a house or apartment, you should realize that your 'stuff' is not insured. This includes your TV, iPod and furniture. If you want to protect these items from fire or theft, you will need renter's insurance. This coverage is not expensive and should cost you no more than $100 per year. Choose replacement cost coverage versus actual cash value. If your iPod is stolen, replacement cost coverage will allow you to buy a new one whereas cash value coverage will only reimburse you for the value of your 'used' one. For more information about renters insurance and free quotes, go to www.rentlaw.com or have your parents put you in contact with their property and casualty insurance agent.