Education
Personal Finance 101: Tips For Students
By
Aug 30, 2007, 23:24

(NAPSI)-For many college students, some of their most important lessons will be learned outside the classroom. That's because no matter what career they pursue, learning how to handle money and credit are lessons that can last a lifetime.

Credit card debt, for example, can be particularly challenging for many students. According to the Young Americans Center for Financial Education, 45 percent of college students are in credit card debt, the average debt being more than $3,000 before they leave school. The Center also claims that it's common for university administrators to lose more students to credit card debt than to academic failure.

To help, here are some tips from the financial experts at ING DIRECT, the nation's largest direct bank.

• Start saving at a young age-Open up a savings account or CD for yourself before you get to college. This way you will always have money to fall back on when you need it, and you'll learn the importance of saving.

• Only use a credit card when it is absolutely necessary-It can take many years and thousands of dollars to pay off credit card debt. Only use a credit card in emergency situations.

• Create a budget-Create a budget for each semester so you can prepare for future expenses. This will save you the headache of figuring how much money you need for everything, and leave you with extra spending money.

• Eat at home-Going out to eat with your friends is fun, but can really take a toll on your bank account. Buy enough groceries for a week or two so you can make lunch and dinner on your own.

• Carpool when possible-If your schedule with your friends or roommates is the same, try carpooling once in a while. It saves you all money on gas in the long run, since you can take turns driving each week. Also, check to see if your campus has a bus service that you can use to get to class.

• Buy your textbooks from discount Web sites-Consider purchasing your books from Web sites such as Amazon.com or Half.com. It can save time and money.

• Open a bank account at school-By opening a bank account, you can easily cash and deposit checks and may be able to avoid surcharge fees at ATMs.

• Watch how and where you spend your money-Keep a log of your deposits and purchases, especially from checks and debit cards. Even though your bank may track this electronically, it's good practice for you to personally manage your funds. Keeping a hard copy of this information is always a good idea.

To learn more, visit the Web site at www.ingdirect.com.

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