Entering your first-year of college is an exciting yet overwhelming experience. While academic and social concerns are probably high on your list, don't neglect your financial needs. Learning some tips and monitoring your accounts will ensure that you won't go broke by Halloween.
1. Splitting the Bill with your Parents- Before move-in day, take an hour to sit with your parents and discuss who will be responsible for which expenses. Perhaps mom and dad will buy your books as long as you pay for your dinners out. Save your summer job paycheck or land a job on campus to avoid getting in a bind.
2. Understand your Financial Aid- If you have a merit scholarship, understand the terms you need to abide by to keep it. Some merit scholarships require you to re-submit the FAFSA each year. For need-based aid, understand the terms of your loans and ask questions if you aren't sure. At the beginning of the year, students need to sign promissory notes and go through entrance counseling for their loans. Students need to re-apply for aid every year!
3. Which Bank?- If you haven't already done so, set up a checking account! Look for a bank that has a free debit card and low minimum balance requirement. As of this coming year, 09-10, all working students must have direct deposit.
4. Plugging Money Leaks- Watch your spending from the day you move-in. Evaluate your spending after one month and see where most of it is going. Are you running off campus to Dunkin Donuts for coffee every day? Use your meal plan to get coffee on campus or even brew your own. If your budget can't accommodate all of your spending, decide which items you can go without or pick up extra hours at work.
5. Monthly Transfers- Consider having your bank transfer a fixed amount monthly that will help with living expenses. If you transfer all of your money into your checking account at the beginning of the semester, you may spend it more freely than you should.
6. Consider Credit Cards Carefully- If you don't have much experience managing your money, you may want to wait to acquire a credit card until you've used your debit card, balanced a checkbook and familiarized yourself with your online accounts. Once you have the knowledge and experience to spend wisely and pay your bills on time, then you should apply for a credit card. It is easier for students to get a credit card than for those who graduated so you should have one before graduation.
7. Communicate with your Roommate- Most incoming students will have a roommate. Both of you will want to outfit your room to suit all of your needs and may agree to split some of the big ticket items like a fridge or TV. However, you may want to agree to bring separate items (i.e. roommate 1 brings the fridge, roommate 2 brings the TV) instead of splitting the cost of each item, in order to avoid ownership spats later.
8. Safeguarding your Financial Information- Keep things like bank statements, your social security number and other personal financial information tucked away in a safe location. You may even consider buying a small safe.
9. FREE- Always look for cheap or free entertainment and food. This is bountiful on a college campus. Attend cultural events, sporting events, club activities. There will sometimes be free or cheap concerts and events to go to in Boston. If properly thought through, you could eat for free for weeks.
10. Student Discounts- Always ask if there is a student discount. You can get them at places like the movie theater, museums, even car insurance. That's right, you can save on car insurance by being a good student.
Welcome to College,
Savvy Student
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