More Information

Business - Personal Finance Notebook
Comments (0) |

College $$$ tips

Published: Monday, Sep. 22, 2008 | Page 2D

For parents

• Have the chat. Talk about money – what you'll pay for (tuition, rent, etc.) and what's their responsibility (social life, Starbucks, etc.). Also talk about what happens – and who pays – when the inevitable mistakes occur, like overdrafts, bounced checks or late payment fees.

• Talk them through your own credit card bill. Explain interest rates, minimum payments, grace periods and finance charges. If you've had late fees or payment problems, use these as "teachable moments."

• Credit vs. debit? Some experts recommend never giving teens a credit card, even in college; others say it teaches responsibility, if used properly. Judge your student's maturity and decide what works.

For students

• Dull as it sounds, make a budget. Use one of the Web-based student budget calculators, like www.bankrate.com. Write down everything you spend. Then tally your income. Subtract your expenses from your income. If you're short, a budget lets you decide where to cut back.

• If you're using an ATM card, don't pop it out at every stop. Instead, withdraw a set amount of cash each week for spending. When it's gone, close the wallet. • If you're using a credit card, always pay off your monthly bill. If you don't, you're risking costly fees: late payments, overdraft charges, higher interest rates. And the start of a lousy credit rating.

• Don't forget "payment-due" dates for bills. Make yourself a reminder, sign up for e-mail alerts, write it on your calendar.

• Do your homework. Before signing up for any new account or card, check the fine print for fees and charges. Always shop around for the best rates.

• Don't use your credit card for cash advances, which generate costly fees.

• Enjoy college to the max but look for a low-cost lifestyle, whether it's consignment store clothes, used textbooks or cheap movies and concerts. To lower bills, share housing, food, entertainment. Turn off lights. Buy generic. Stay healthy.

• For more money-saving tips, check the UC Davis "Student Money Management Guide" at: www.financialaid.ucdavis.edu/undergraduate/students/mymoney

– Source: Bee research

Dear Readers,

Thank you for coming to sacbee.com. We welcome your participation in our commenting boards and forums, but we ask that you follow a few simple rules to keep the boards open and the discourse civil.

We reserve the right to delete comments that contain inappropriate links, obscenities or vulgarities, spam, hate speech, personal attacks, plagiarism or copyright violations. You can help notify us of potential abuses by flagging comments that you find offensive. Action will be taken against users who repeatedly or flagrantly violate the rules. Keep it clean and you should have no problems.

tool name

close
 
Sacramento Bee Job listing powered by Careerbuilder.com

Quick Job Search

View All Top Jobs
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older