!0 Things College Students Should Know

Heading off to college? Here are 10 things you should know before leaving:

1) Where you will get cash from--is there a branch of your bank close to school and if not, get a checking account at a local bank. If you withdraw money from an ATM that charges you out of network fees, you can incur up to $5 in fees for withdrawing that $20.
2) How to check your balance in your checking account online and even via your phone. Knowing the amount of money you have before going out and spending is critical. Set up an alert message from your bank when your account goes below a certain amount.
3) What amount of money is your spending money for the year--whether you had to earn it over the summer, will be working during the school year for it or your parents have agreed to pay a certain sum--figure it out before you leave and plan out or budget what amount that translates to per month/week. Talk with your parents/caregivers on what happens if you run out of money--even if that means, "too bad"--just so you are clear.
4) If you are taking out student loans, how much are you incurring. If it's an unsubsidized loan, can you pay the interest payments while in school which will greatly reduce the amount owed when you get out of school.
5) Are your belongings covered by insurance, either a homeowner's insurance from back home or a separate policy for college students/renters insurance.
6) Do you have health insurance and what does it cover/cost. Can you get prescriptions filled at school or do you have to go to a local pharmacy? Can you use your insurance at a local urgent care facility in case the school health center is closed?
7) What exactly does your meal plan cover--if you don't use all the meals in a semester, what happens--does it roll over to the next semester or can you use those meals as points?
8)  You can't get a credit card until age 21 unless you have a co-signer or ability to pay. If you have one--whether your own since someone co-signed with you or because you are listed as an authorized user on your parents' card, figure out how what will be charged on the card, who will pay and what happens if you charge an amount that it not agreed upon?
9) Safeguard personal information--ID Theft does happen to college students. Check your credit report to make sure everything on it is accurate.
10) Learn to handle your finances now. Try to save some money and of course call home often.
For more information:
www.mymoney.gov
www.youngmoney.com
www.federalreserve.gov
www.ftc.gov

Plan for Auto Repair

Whether you have a new car or are trying to eek out a few more miles from an older one, you can bet that you will have auto repairs in your future--it's just a part of car ownership.  Next to your home, your car will be one of your larger expenses in your Spending Plan but there are ways to reduce the costs. First, pick your repair shop carefully and before you have any problems. Start with recommendations from neighbors, friends and family. Check on the repair shop's accreditation and complaint records.  Call and ask how much an oil change is for your vehicle--compare that price with other shops. Be sure to get a total price--one that includes shop fees and waste removal fees. Do the same for an Auto Body shop and decide on a towing company or a towing membership organization. Check your car insurance policy to see if towing coverage is included.

When you need repairs, tell the shop what the problem is, "the car won't start" not diagnosing it yourself "I need a new battery".  Ask for a written estimate and for the old parts back. You may need those parts if there is a dispute about the repairs. Keep a written log of repairs to your car and make sure you are following the manufacturer's recommended maintenance schedule. This will help keep you and your car on the road. For more information, see the FTC's "Taking the Scare Out of Auto Repair".

Make $1000 Stuffing Envelopes--Seriously?

You've probably looked at billboards, telephone poles or received emails that promise you can earn "Extra Money Working From Home".  I even had flyers and business cards placed on my windshield. Were you ever intrigued enough to call the number? If you, like many others, did-you probably talked to a very energetic person who tired to convince you to send in a small sum of money to learn about this "amazing" opportunity. If you are tempted and justify the amount by saying "it's only $9.95" STOP. First, real job opportunities do not happen like this. Second, it's illegal in many states to collect money upfront for a job opportunity. They may call it a registration fee or a fee for the start up materials but however they word it, they'll still charging you for this work at home job and you will get next to nothing in return. The reason they charge a small amount is because they hope you won't complain to consumer protection agencies who will investigate and shut them down. Even though it may be a small amount, it's not worth losing your hard earned dollars to a work at home scam. For more information, see the FTC's "Work At Home Schemes" publication.

Gas Prices Messing up Your Spending Plan?

I'm guessing that many people are feeling the pain of the increase in gas prices--I know I am. While I feel that I can't control the price at the pump, I do need to find ways to cut expenses in other areas to make my Spending Plan balance. Here's some ideas that may help:

• Make sure your car is well maintained and your tires are properly inflated--to help with gas consumption
• Combine and plan your driving trips to minimize the miles you have to drive
• According to Consumer Reports, not using your air conditioning and rolling down your windows does NOT save you any money on gas
• Use coupons for groceries, cosmetics and dining out--if the coupon makes sense for your buying habits--getting $1 off of cereal doesn't help if you have to buy 4 boxes of it and you won't use that much cereal in  a month
• Don't feel obligated to get everything on your child's "back to school shopping list". I have enough graph paper to last 10 years--only as scrap paper now since my kids are out of school and never used the "required" amount of graph paper.
• Don't buy bottled water at a convenience store if you can avoid it--if using your own water bottle doesn't work for you, buy water by the case--you can get it down to 13 cents a bottle vs $1.59 at most convenience stores. (Please recycle)
• Buy at bulk stores, again only if it makes sense for you--will you really use that huge jar of mayo which you got a great price--but will go bad before you can consume it?
• When cleaning out your garage or basement, consider have a yard sale to earn some extra cash and check for scrap metal that you can sell instead of dumping in your community's waste facility
• Check the cost of your vitamins which can be costly if you buy them at pharmacies or grocery stores--check for them at the bulk stores

Make the topic of money saving ideas the subject at a family dinner--you'd be surprised what ideas everyone will have. You could even adopt the practice that some local governments/businesses are doing--if an employee (family member) comes up with a viable idea to save money--they get some of the savings--that ought to encourage some creative ideas! For more money savings tips, see the Consumer Federation of America's website.

Memorial Day Shopping=Good prices?

Why is it that we see the words "On Sale" and our hearts beat faster, our brain shuts down and our wallets open up? As with all major holidays, there are a rush of "Memorial Day Sales" ads, claiming the lowest price on that grill, amazing patio furniture at rock bottom prices, tremendous savings on outside garden equipment and last minute travel deals. Retailers are adept at knowing what will push our buttons and make us buy--feeling like we got over on them and got that item at an amazing deal--one that we will want to brag about to our friends and family. Even worse, there's nothing better than a store that's going out of business-unbeatable deals there!   While I am the first to admit that I admire the advertising industry--I actually watch the commercials on TV--I also know that the tricks they are using to get consumers to buy. My advice to consumers:

• The word "Sale" has very little meaning in today's world
• Do your own comparison shopping to see if that price is "rock bottom"
• Buying something, on sale or not, is only a good value if you can afford it--buying something because it's an awesome price but paying for it with a credit card defeats the savings

So, instead of hitting the stores this holiday weekend in pursuit of that "Sale" price, spend some time learning about the history of Memorial Day and put the money you didn't spend into your emergency savings account or pay off some credit card debt--you can brag about that to your friends and family and it will have longer term effects on your financial security than that new grill!