How To Be A
Money Smart Student!
By
Brian Hostick
Smashwords Edition
copyright 2012 Brian Hostick
License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you're reading this book and did not purchase it, or it was not purchased for your use only, please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
Dedication
This book is for my family. You're the reason I do everything I do.
Chapter 1 - Being a Money Smart Student
Chapter 3 - Education and Campus Life
Chapter 4 - Housing and Transportation
Chapter 5 - Groceries and Food
Chapter 7 - Personal Finance Resources
Being a Money Smart Student
I'm writing this book so you don't end up like me. My financial problems came about a little later in life but the foundation, or lack thereof, was formed much earlier – right after college earlier. It is a path taken by too many people. Excessive credit card debt, more and more money taken out in loans, irresponsible money management and poor control over expenses and spending. It eventually led to bankruptcy and the total destruction of my credit rating.
As I was getting my financial house back in order, I researched all I could about personal finance. I listened to all the money gurus, and read all the blogs I could find. I realized two things - a) I wasn't alone in what had happened and b) it was happening to people at a younger and younger age all the time. In fact, it was obvious that teenagers were in dire need of a financial wake-up call.
The lack of a concentrated effort to teach students the importance of good financial habits is costing students money. According to USA Today, one out of every five people filing for bankruptcy is a college student. The 18 -25 age group is the fastest growing demographic filing for bankruptcy. The Sallie Mae Foundation reports the average student will graduate from college with over $25,000 in student loan debt and another $3,400 in credit card debt. The majority of students with credit cards will max that card out, regardless of the limit, before the end of their first year away at school. A lack of financial education is also costing colleges and universities large numbers of students. According the the National Center for Education Statistics almost 25% of all first year college students will NOT return for their second year. Over 40% of those dropping out are leaving because of financial issues.
It's understandable why things are the way they are with personal financial education. School districts are increasingly strapped for money themselves. Much of the focus these days has to be on the core subjects students need to go on to college or get through life in general. Extra courses are pushed aside, including classes which deal with money.
That leaves the task of teaching good financial habits to a student's parents. However, many parents are having their own problems in these difficult times figuring out how to take care of their own money matters, let alone pass on some solid knowledge to their teens.
A recent survey found that approximately 70% of teens would like to learn their financial basics from their parents. Unfortunately, only 40% of parents in the same survey felt they were qualified, or were willing, to teach their children about smart money management. That's a pretty large gap in the want/need of the teens and the desire/ability of the parents when it comes to financial education.
If schools can't teach money classes and parents can't, or won't, teach financial management at home, where are today's teens going to learn even the basics about handling their finances when they leave home for college, or venture out on their own?
It appears the responsibility is going to end up with the students themselves. The good news is, in my research, I've realized most teens want to learn how to handle their money. They know that there's more to it than just getting a paycheck from somewhere and paying it all out to various places. With a little guidance, a few tips here and there, and plenty of resources available at their fingertips – today's teens can still be Money Smart Students!
This book is the 'few tips here and there' part. Some of the tips will also contain resources – all of which are listed together at the end of the book. My hope is that students who read this book will take it upon themselves to find out all they can about being money smart.
My father told me a saying a long time ago - “If it is to be, it is up to me!”. That is exactly the attitude students today need to take when it comes to their finances. Find out everything you can about money management. Read the multitude of blogs online dealing with this subject. You can find a list of the best personal finance blogs at www.wisebread.com.
I hope you will read through this book in it's entirety. All it will take is two or three tips to save you a noticeable amount of money. If you save a total of just $200 dollars a month from the information you read in this book, it will add up to over $5,000 by the time you finish a three year college program. That's less money you will need to borrow, or that you need to save on your own.
Thank you for getting this book and taking charge of your financial future. Use this, and every other resource you can get your hands on, so you can be a Money Smart Student.
*****
FINANCES
Apply, Apply, Apply
Put your application in for any, and all, scholarships, bursaries and grants you can find. You never know what you could qualify for and who is giving away money for school.
That little $100 gift from the local Lions Club or Church Woman's League is a couple of week's worth of groceries!
Deadlines! Deadlines!
Along with applying for any and all scholarships – make sure you pay close attention to the deadlines on the applications.
You are guaranteed to receive none of the money you apply for after the deadline. Also – don't stop applying for money after you get into college. It isn't just Freshmen who get scholarships and bursaries. One of your part-time jobs in college is to research and keep applying for scholarships – unless you are independently wealthy and don't need any help with your college expenses.
Only What You Need!
If you find you need to borrow money in order to pay for college, only borrow what you absolutely need. Take a hard look at what your expenses will be, how much you have saved, how much you may be getting from parents, scholarships, etc., and only borrow the absolute minimum necessary to cover your expenses. If you borrow more than you need you'll end up spending it anyhow. It will just mean that much more you will have to pay back – with interest.
A Little Here, A Little There
If you do end up getting student loans, pay off whatever you can, whenever you can. Putting even the smallest amount down on your student debt, while still at school,will save you hundreds of dollars in interest in the long run. If you have a part-time job you should definitely budget a small amount of every paycheck for debt reduction.
Stay at Home
Sure, it would be great to go off on a wild trip to Mexico or Florida for Spring Break, but you better be using saved money and not student loan funds. Is it really worth all the interest you'll be accruing to take a trip which will already be a fading memory before you even start paying for it?
Stay local – visit family and friends – the sunny South will still be there once you graduate.
Emergency! Emergency!
One of the best things you can do for your own peace of mind is to set up an emergency fund before you head off to college. Put aside a small amount of money - $300 to $500. Save this money before you go away. Put it somewhere not easily accessible - maybe a savings account not attached to any bank cards. Use it only in case of emergencies – such as unexpected trips home or laptop repairs. By not having instant access to the money, you won't be tempted to spend it on an 'emergency' such as the pizza man.
Track It!
Keep track of where your money is going. Keep all your receipts and bills for at least one month (October is a good one to use since you'll be settled into your new routine by then) and see where your funds were spent. By doing this, you'll see where you need to cut back on spending and it will be easier to say 'No' to waste.
No Fees Please!
Be sure to check with your bank, or financial institution, to see if you are getting student rates on your accounts. Most banks and credit unions have 'no-fee' accounts for students. They know if you start your financial life with them, you'll stay with them after you graduate. If you are getting charged fees on your bank accounts – you need to find another bank!