College Planning Tasks: for the Week of July 27

Summer Requirements Before College

Managing Your Money

There will be a lot of money that will be changing hands over the next year. The question is how best to manage your money.

1. Setup a checking account with your family bank.
   Many banks offer FREE student checking accounts. Use your checking account for ATM access and check writing such as paying tuition and monthly rent.
2. Use your credit card for everything else.
   Whenever possible, use your credit card to pay for everything else. Many merchants will not accept student checks, so your credit card will be necessary (avoid carrying cash).
3. Setup a College Budget:
   Make sure you budget your college expenses. You want to avoid having to borrow more money to finish the year. Download FREE our college budgeting worksheet.

Credit Card Use 101:

• As a graduating high school student,
  you will be targeted by credit card companies on the “EASE” of using and having your own credit card.
• Think about it!
  Your own personal card to buy pizza, clothes, gas, music — you name it — without having to pawn money from your parents.
• But there is a hitch.
  The credit card charges will come due in about 25 days. And if you are like most students, you won’t have have enough money to pay your credit card off.
• No problem!, say the credit card companies.
  Simply pay the minimum payment (which will be very low) and continue using your card as you like.
  That is where the credit card companies entrap you — they want to keep you paying that low minimum payment from month-to-month.
• By paying just the minimum payment each month,
  it will take you about 23 years to pay off your by credit card balance.
• So be wise with your credit cards. 
  Only use them to pay for items that are part of your college budget.  Set aside money in your checkbook after each purchase so that funds will be available to payoff your credit card balance each month.

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