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[S122]Saving Tips For College Students

by Andrew Korn, And

College students always have to be frugal, as they may be on scholarships. Many of them will have student loans and will also be working part time, to cover their expenses. There are many ways that college students can save money. The first and most important thing they will need is textbooks. The easiest way to save money is to buy used text books.

These books can be gotten from the previous set of students, as they are sure to have them. If not, a student could also borrow from their friends, if they are not using it. There are other ways to find the used textbooks too. They can be found online and students should make use of this facility. The schools will also have the required books, and there will be advertisements.

A student must also ensure that they are right college textbooks, before purchasing them, so that he can save money. Paying student fees may be quite a task. To avoid paying the entire amount of their own pockets, students can find good scholarships, and they can also avail student loans. These two methods are the best options for a student to save money when it comes to college fees.

Food expenses will also take a major portion of the pocket money, but there are many ways to reduce the amount required to spend on food. For one, students can always share the meals with roommates. They can equally divide the food and then share the bills. If they are eating outside, it is always best to go to take away joints, or go to places where there are no waiters.

Students can save a lot of money with tips. Only it is absolutely necessary, they should buy junk food. They could probably eat that once a week. Else they should eat a good balanced meal, and this is also very healthy compared to junk food. Some schools may even offer discounts and before buying the food, they can look for such discount coupons.

With students, there is always the need to entertain themselves. For all the tickets, there will be discounts. They may seek such tickets and look in college advertisements, and also in other postings. They can specifically seek places where they offer student discounts. Most or all students will want the best gadgets, and this is an absolute waste of money.

Students must only buy what is necessary for them. Even cell phones must be planned well. It can be used when it is absolutely necessary, just to contact the most important people like family and close friends. There will be other plans too, like medical and travel expenses. Medical expenses can be sought after on campus, as they will have discounts again.

There is no need for students to own cars either. They are too young anyway, and they have time to enjoy the benefits of a car when they finish college. They can use the bus and even walk to college if it is close buy, or even use bikes to get there.

Are you a college student or a recent graduate? Chances are you're saddled with a hefty amount of student loans as well as consumer debt, like car payments and credit card balances. Two-thirds of undergraduates emerge from college with student loans, with the average amount from federal loans alone (Stafford and Perkins loans) just above $19,000. Throw graduate school into the mix, and those numbers get even scarier.

Some students and graduates have already learned how to make smart borrowing decisions and manage their debt. Others are in for a rude surprise - it can take years to get out from bad financial decisions you made before you even started your first real job.

That's a pity, because one of the main reasons for going to college is to invest in yourself, to increase your earning power down the road, and to open doors for yourself. If you make stupid financial decisions while you're in college and as you transition into the working world, you're squandering your big investment and limiting your choices. Think money gives you freedom? Not if it's borrowed and badly managed. Why close doors on yourself?

Whether you're still in school or have already graduated, keep these rules in mind as you make borrowing and spending decisions.

1. Smart debt vs. stupid debt

Not all debt is bad. Student loans, for example, are a smart investment if you invest that debt in the right program and do well there. When is educational debt bad? When you're wrecking your transcript because you're out partying all the time, for example, or you borrow for a school or a degree that won't enable you to pay that debt back.

Even smart student loans need to be managed wisely, however. Your tuition and school fees are fixed costs, but you have a choice to make about every dollar you borrow above and beyond that amount to finance your lifestyle. Every dollar you borrow to live on your own instead of sharing space with a roommate, to eat out instead of feeding yourself, to buy the latest and greatest video game systems or cell phones, to go out drinking, and to have someone paint your nails is stupid debt. Don't get me wrong - I love a yummy restaurant meal as much as the next person, but don't borrow in order to have those things. If you borrow stupidly, you'll find yourself living a lot less glamorously after college than you did in college. Who wants to move backwards like that? Consumer debt is stupid debt.

Borrowing to fund illegal or addictive activities is also stupid debt. If you find yourself "having" to borrow in order to pay for alcohol or internet gambling (the latter is also illegal in many states), you have bigger problems to worry about than just your finances. If you can't stop doing either of those things to preserve your financial health, you need help quitting. Now.

2. Know how much you can borrow

If you're still in the planning stages, use the excellent calculators and resources at FinAid.org to figure out how much student debt you can manage.

3. Paying off debt

If you find yourself with different kinds of debt, pay off any consumer debt before you pay more than the minimum monthly payment on your student loans. Compare the interest rates you're paying on your various balances - pay down the debt with higher rates first.

4. Pay your bills on time

Many of the college students and recent grads I interact with are bad about paying their bills on time. You've got to treat your bills as sacred, because even one late payment will show up on your credit report and lower your all-important FICO score, a number derived from your credit report that summarizes your credit-worthiness. You want that number to be as high as possible, ideally above 700. The lower your score, the more money you'll pay to borrow.

Who looks at your credit report and FICO score? Everyone from credit card companies to educational lenders to prospective employers to landlords to mortgage lenders to car and health insurance companies. Get a free copy of your credit report at www.AnnualCreditReport.com, and pay the small additional fee to find out your FICO score.

5. Think hard about grad school

Many college seniors who aren't sure what to do after graduation rush off to graduate school (often law school, because that admissions process requires neither work experience nor a specific undergraduate curriculum). More often than not, their parents are also pushing them into grad school. Big mistake. Graduate school, especially law school, is expensive. It will set you back six figures and three years of lost work experience and income, all for a career that most applicants know nothing about. Go out and experience the working world before you commit to a particular graduate program. If you think your current student debt is scary, imagine how much more indentured you'll be with an additional six figures of debt. If you're going to make that kind of investment, make sure it's a smart one. Grad school isn't going anywhere. You owe it to yourself to learn more about what you want out of a career, and out of life, before committing to a particular track.

Your first few years in the “real world” after college are going to be full of new and challenging experiences. You don't want the financial decisions you made as a college student to restrict the choices you have in the working world. Making an effort to get a handle on your debt as quickly as you can gives you a head start on repaying loans and building a sound credit report.

Article Source : City Of Phoenix Services

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Both Andrew Korn & Anna Ivey are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Andrew Korn has sinced written about articles on various topics from Careers and Job Hunting, Computers and The Internet and Phoenix University. StudentsMetro find - ,. Andrew Korn's top article generates over 18100 views. to your Favourites.

Anna Ivey has sinced written about articles on various topics from Financial Planning, Phoenix University and Careers and Job Hunting. . Anna Ivey's top article generates over 1600 views. to your Favourites.