If you're headed to college and you don't already have a credit card, you'll certainly have opportunities to nab one by the end of frosh week with all the credit card companies trading contracts for free t-shirts in the quad. Getting a hold of some plastic can be a good thing, you'll need to build at least some credit history to rent an apartment or buy a car down the road, but if you're already an impulsive shopper who can't properly manage the limited funds you undoubtedly already cling to, then any credit card can mean financial suicide.
However, if your looking for a life-raft in the confusing and no doubt murky waters that are financial responsibility, we'll do our best to throw you a line with a few helpful credit card management tips to get you started on the basics. After all, credit doesn't have to be that scary, you just have to know how to tame the lion.
Should You Even Be Getting One of These?
That's the first question you should pose to yourself before christening your first charge card. Look at your financial attitude honestly: Is it one of malaise and indifference, or do you already keep a budget and handle other bills, rent or bank accounts responsibly? You also need to really examine why you want a credit card at all. Are you going to use it strategically, like only in the event of an emergency, or do you regard a credit card as the expansion of the spending power you already have? A credit card is essentially a loan -- the credit card company loans you the money and every time you sign the receipt you're promising to pay back the money. If you cannot pay back your outstanding balance by the end of the month, there are consequences, which brings us to...
Read and Understand the Fine Print
Beyond the teaser rates (those temporarily lowered promotional interest rates) it's important to find out what the real interest rate is after the typically, six-month "holiday" is over and what the consequences are if you are late with a payment or fail to make one? What are the fees you are required to pay as part of the penalization? Finally, what is the interest rate on a cash advance or a credit cheque? You should also know that missed payments stay in your credit report for seven years. Also, it's important to realize that the dates for payment can change without notice, so keep an eye on your statements every month. Such a change is a great excuse to call your credit card company and ask them to reduce your interest rate for you. Truth be told, most companies would rather lower your rate than lose your business.
Keep on Top of Your Payments
The best way to bypass all the tsuris associated with credit cards like debt, interest charges and a poor credit rating is to just payoff the balance every month. Yes, it is that simple. Keeping the tab on the card manageable makes it easier to pay off the outstanding sum. Just paying off the minimum payment is a guaranteed way to keep you in debt for years with the interest compounding as the months go by. Very soon you will be paying off the balance and more, so it's best to stem the flow right away. Of course, things happen, so if you can't pay the full balance, pay the maximum amount that you can. Whatever amount you're paying, make sure you pay early (at least a week) to avoid late fees.
Walk on By
Remember that just because someone is beckoning you with a credit card offer, it doesn't mean you have to take it. You can even fight back against if you don't feel you're ready to manage a card of your own. Some colleges whore out student phone numbers and addresses to credit card companies as part of marketing deals. Lobby your school to not sell student info and ask your student government to stand in solidarity with you and support that initiative.You can also take the opportunity to put your name on the '
Do Not Call List' to reduce your instance of being pressed by credit card providers over the phone.
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Save on Back-to-School Spending: College Edition
Do You Really Need That?
A Mom & Son's Advice
In the not-so-far future, in the unloading area of college dormitories all across America, cars and SUVs will be disgorging skyscrapers of stuff: bed-in-a-bags, floor lamps, microwaves and cube refrigerators, computer laptops in leather carrying cases and more than a few flat screen TV sets. But what do you really need? And how can you make college spending dollars stretch? Our mother and son blogging team have some advice.
Beth Weschler ("mom"), a social worker, and Zac Bissonnette ("son"), who will be a junior at UMass Amherst this fall, have come up with some rules for college shopping -- what's worth it and what's not. Click through our gallery for a "she says/he says" look.
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Back to School Savings: College Edition
Do You Really Need That?
A Mom & Son's Advice
In the not-so-far future, in the unloading area of college dormitories all across America, cars and SUVs will be disgorging skyscrapers of stuff: bed-in-a-bags, floor lamps, microwaves and cube refrigerators, computer laptops in leather carrying cases and more than a few flat screen TV sets. But what do you really need? And how can you make college spending dollars stretch? Our mother and son blogging team have some advice.
Beth Weschler ("mom"), a social worker, and Zac Bissonnette ("son"), who will be a junior at UMass Amherst this fall, have come up with some rules for college shopping -- what's worth it and what's not. Click through our gallery for a "she says/he says" look.
Back to School Savings: College Edition
Housing
Mom says: Coordinate purchases so that you don't duplicate. You don't need two microwaves, two irons or individual spray bottles of WIndex. It isn't too soon to start thinking about how you can beat housing costs next year. Nursing students can often find free room and board with a senior citizen and other students may be able to find live-in arrangements in exchange for childcare or handyman hours.
Son says: For my money, living on campus is one of the biggest rip-offs that students will encounter during their college years. The biggest savings from living off-campus come from not being subjected to the outrageously overpriced cafeteria food that is stinking up dining halls around the country and making students and their families broke in the process. If your child is living off-campus with friends, invest $10.17 in a copy of 'The Healthy College Cookbook.'
Back to School Savings: College Edition
Food
Mom says: If your student has an unlimited meal plan on campus then he will probably still need a refrigerator, although maybe not a microwave. With more limited plans, keeping basic breakfast foods, light meals and snacks in the room can save serious money. It actually isn't unusual for students living away from home for the first time to put on weight. Stocking healthy foods can make a difference. Nutrisystem foods don't require refrigeration and can be purchased on eBay.
Son says: The best way to save money on food in a dorm is to make sure that you have microwaveable, reusable bowls, plates, and cups. You shouldn't have to spend more than about $8 equipping a dorm room with dinnerware. What food belongs in a dorm room? A good rule is not to buy anything that comes in individually wrapped servings. These are a complete rip-off!
Back to School Savings: College Edition
Electronic Gear
Mom says: Virtually every student should have a computer (and I think a printer -- but Zac disagrees) but unless their major -- or special needs- - makes it necessary, the computer doesn't have to be state-of-the-art , a designer color or even a laptop. The most important piece of gear you need: an alarm clock.
Son says: I know a lot of people who've brought printers to college, and I know very few people who use them. In my experience, it's much easier to do all your printing at the library. Reasonable price for a laptop: $300. Unless your student is studying computer animation, I really don't see any reason to spend more money than that. When it comes to a television, a small extra television from home should do just fine. Dorm rooms are too small to sit far away enough from the television for a large screen to be healthy for your eyes.
Back to School Savings: College Edition
Entertainment
Mom says: If you play a musical instrument or practice any other art or craft, bring it to college. That should be enough entertainment for your dollar!
Son says: Retailers that advertise video games as part of their back-to-school sales should be ashamed of themselves. Video games in college? Shut up! One of the great things about college is all the free entertainment that is available.
Back to School Savings: College Edition
Clothes & Personal Supplies
Mom says: Unless your circumstances are unusual, 95% of the time, college students wear jeans, tees, sneakers, sweatshirts and sweat pants. But you do not need 12 pairs of jeans or 22 shirts. New underwear -- sure. Be aware that shaving costs can add up. Can you do with electric? If so, the Norelco All-in-One electric can be picked up for $15. And be prepared for the common cold, cramps, headaches, paper cuts and the like by putting together your own kit.
Son says: Many college towns have a store called Plato's Closet. This store is awesome! You can get Abercrombie t-shirts for $10.
Back to School Savings: College Edition
Books & School Supplies
Mom says: Your school logo is great but if you buy all your notebooks at the college store, you'll spend ten times more than you need to. Watch the office supply store flyers. Loss leaders -- $1 each -- often include pens, highlighters and white out. Spiral notebooks, loose leaf binders and paper will be on sale late July to early August.
Son says: Textbooks can easily tack on an addition 10% to 20% of the cost of attendance -- so minimizing this expense is extremely important. Here are a few tips: Don't buy your textbooks before the first day of class; Ask if having an old edition of the book will work; Consider renting books; Never, ever, ever buy your textbooks new.
Back to School Savings: College Edition
House Supplies
Mom says: If you have a comforter or blankets (and you probably do!), you can spruce it up with new sheets and throw pillows. For cleaning supplies, start at any dollar store. Bring laundry detergent, but if you live in the dorm, you'll be unhappy with lugging around the 128 ounce bottle. A purchase that will let you pull things into, out of and around the dorm is the Expanding Folding Crate with wheels.
Son says: Picking up a few moderately-priced throw pillows at Target or Pier 1 Imports can really help pull a room together. And for art, please, please, please do not buy posters at the mall or the school store. You will end up with the same posters as everyone else! If I walk into a dorm and see one more Abbey Road poster, I'm going to burn it. Instead, check out the clearance section at AllPosters.com, and watch for all the special sales and free shipping deals. Vintage art deco-style travel posters look really cool in a dorm room.
Back to School Savings: College Edition
Transportation
Mom says: Buy a bicycle and helmet. And if you absolutely need a car, see whether your college has the Zip-car program.
Son says: For freshman who are living on-campus, a car is not necessary or even desirable. For older students living off-campus, it may be worth having -- especially if it allows the student to work at a higher-paying off-campus job on nights and weekends. But if your student is heading off to college for the first time, leave the car at home.
Back to School Savings: College Edition
Phone/Cell Phone
Mom says: There are fewer and fewer land lines and most students today rely on cell phones. It is ABSOLUTELY CRITICAL that your student's cell phone plan has: family talk, or something similar, more minutes than you think they will need, unlimited text messages.
Son says: Make your kid pay his own darn cell phone bill, that's what I say. And see if you can talk him into paying yours too. He owes you big time!
Back to School Savings: College Edition
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