College Students School Each Other with Financial
Tips (ARA) - Who knows better about managing money and living on a tight budget than college students? In a recent nationwide campaign, Bank of America asked college students to share practical money management tips, and more than 5,000 students offered advice for saving more, spending less and managing college debt. "Now more than ever, it takes planning and saving to stay ahead. Students may not think they are in a position to take control of their money. But they are," says Farnoosh Torabi, author of "You're So Money: Live Rich, Even When You're Not" who worked with the bank on the campaign. "Opening a financial dialogue with your peers is a great first step." As part of the campaign, Torabi appears in Webisodes, posted on www.bankofamerica.com/morris, in which she discusses her top tips on how college students can save money. While visiting the site, students can also download the Student Financial Handbook, a handy guide full of additional tips on managing money. One of the first steps that students recommended in managing their finances is a common refrain among professional financial planners -- pay yourself first. "Set up a direct deduction from your paycheck," one Virginia Tech student says. "Even as little as 5 percent from everything will add up quickly. If it is automatically deducted, you will never see the money and never have a chance to miss it." Using a personalized financial spreadsheet to create a budget, embedding reminders on electronic calendars to pay bills on time, and keeping track of account balances online also were strong recommendations. "If you check your balance online nightly, you can automatically update the spreadsheet each day and maintain a current balance by subtracting any outstanding and pending items that have not yet cleared your account," one George Washington University student says. "This way you always know what you have, what you have to pay, and what you have left to splurge." Textbooks are a significant recurring expense which also represents an opportunity to save -- by buying used books or getting access to free books from the library that have been put on reserve, or Web sites that offer free "sponsored" text downloads, if you don't mind the ads, students say. Heading into financial aid season, several students offer practical tips for tapping into a key source of income for covering tuition bills. Fill out the financial aid forms by Feb. 1 to meet school deadlines and stake your claim to financial aid, and complete as many scholarship applications as you can, a University of Nevada Reno student says. Although most students in the Bank of America campaign focused on budgeting and spending wisely, others considered the other side of the financial management equation -- managing debt, especially from college loans. "If you can, you should start pre-paying your loan $50 a month, and by the time you graduate you have less to pay off," an Ohio State University student says. Torabi, a senior correspondent for TheStreet.com, offers her own tips to simplify money management for students in this complex economic time, including: * Planning is Key: Knowing what you want in your life -- short-term and long-term -- can help you better assess your financial needs. * Set Goals to Save: If you have no money, create a practical revenue stream by tutoring fellow students or babysitting, jobs that create opportunities to save. * Think Free First: Seek out and use free resources -- check out DVDs from the library; use your student ID to get discounts and access to museums. Courtesy of ARAcontent |