It's tough to start thinking about ways to save and spending wisely in college, but it can be done! The folks at New Horizons Credit Union stopped by to offer tips on developing good financial habits in college.
Click on the video link to watch the Studio10 interview. Also, below is a paraphrased version of the interview in a question and answer format.
Can students save money while they are in college?
Yes, students will find it harder to save because there is normally not a lot of extra money, so
they need to start small. If they make an extra $300 a month, a good start would be to put back $30 (or 10%) of that. This isn’t a lot of money but the goal is getting in the habit of saving.
What about credit cards, are they good or bad?
Getting a credit card with a low limit can be good for establishing credit and for emergency
expenses. At this point, you only need one credit card.
Does it really matter at this point in their life if they are late in paying bills?
Students absolutely must pay their bills on time, just like all other consumers, including items like cell phone bills and rent. These affect a student’s credit history. Paying bills on time is the number one way to build up their credit.
So what if you have already done damage by not paying your bills on time?
For students who have gotten into trouble running up credit cards and paying late, talk with the
creditors and explain the situation, communicate and don’t just walk away. Show that you plan on clearing up your debt. Perhaps negotiate payments that you can afford.
Are there any other tips you have?
Always keep track of your checking account. Keep track of your credit report from annualcreditreport.com
Check with your financial institution and make sure they offer low minimums and lower fees
New Horizons Credit Union
3445B Saint Stephens Rd.
Mobile, AL 36612-1238
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