Managing Your Money Now = Big Payoff in College!
by Elizabeth Lowry

Although college may be a year or more away for you, there are things you can be doing now to make sure you are financially secure once you set foot on that college campus. In college, there are many things that you will have to pay for that you don't have to worry about right now, such as tuition, room and board, books, rent, groceries, entertainment, rides home for holidays...the list goes on and on.

So what can you do NOW to help yourself financially in the future?

Start a Savings Account - if you don't have one already, a savings account at your local bank is a great way to sock away your money. Even if you can only put aside a set amount of money a month, say $50, then by this time next year, with a three percent interest rate, you will have saved over $700! That is enough to get you through your first semester if you budget your money wisely. Be sure to check into several different savings accounts at area banks near you to find the one that fits your needs.

Learn How to Manage a Budget - Even though your expenses may be limited to buying gas once a week and spending money on DVDs, it couldn't hurt for you to learn some money-management skills this year. To get started, add up all your income for the month: allowance, babysitting, part-time job, etc. Then, make a list of all your expenses: car insurance, gas, food, entertainment, etc., and add those up too. How do they compare? Do you find that you have some money left over at the end of the month? If you do, consider putting that extra money into a savings account for college!

Get a Part-Time Job - A part-time job can range anywhere from bagging groceries to babysitting, and everything in between. Even if your parents limit the amount of work you can do during the school year, something as small as babysitting a couple times a month, raking leaves for a neighbor, or walking your aunt's dogs can really add up! Be sure to use this money wisely, and keep track of it in your budget-maybe you'll even have enough to put in a savings account!

Learn to Manage Your Credit Cards - For those of you that are 18 and older and already have credit cards-learn how to manage them and how they work. Interest rates on credit cards can be as high as 19-22 percent! You WILL have to pay it off eventually, and if you rack up the charges now and only pay off the minimum every month, it can take you almost double or triple the time to pay it off because of the interest compounding on your card. A good rule of thumb is to only spend what you can pay off every month. If you are worried that you won't be able to do this, but you like the convenience of not carrying cash, consider getting an ATM/Debit card that is linked to your checking account. That way, the money you spend comes directly from your checking account and you don't have to worry about paying off a bill every month AND racking up huge interest rate fees.

No matter which way you do it, it pays to learn to manage your cash flow now!