This is part two of my three-part Student Life blog series. (Part one)
When heading off to college, don't forget to move your money out too. Most financial institutions offer student checking, savings, credit cards and other programs to help you start healthy financial habits and build credit history.
Here are three steps to making your financial move:
- Step One: Before you leave for college, find a financial institution in the same city as your college--one that also has a branch in your hometown could be convenient. Don't just pick any institution. Look around and compare to find a place that treats you with respect and offers services that fit your needs. Then open a checking account with them. Student accounts usually don’t have fees attached and most have a minimum opening deposits under $100. They usually don’t have minimum daily balance requirements or maintenance fees either. Checks are usually free, as is a debit card. Some institutions offer programs that reward you for your good grades.
- Step Two: Open a savings account if you have enough money. Student savings accounts have similar features as checking, but usually require more money to open. A savings account separate from checking can help you avoid spending money that you're trying to save up.
- Step Three: Apply for a student credit card. They will have a low credit limit, usually around $500, a low fixed APR (Annual Percentage Rate), and no annual or extra fees. You can compare different credit cards online, but it’s always best to inquire about them with your financial institution. Remember to be careful when it comes to credit card use. The average undergrad carried a credit card balance of $3,173 and had 4 cards, according to a 2009 Sallie Mae report.
Three little steps can have you on your way to practicing good financial decisions while building credit for your future. As a student you usually don’t have to pay extra fees and aren’t expected to keep high balances in your accounts, but that won’t last forever. Check with your financial institution about any other student specials, discounts, or offers.
Check back next week to learn how you can utilize student discounts to save money on shopping, entertainment, and eating out.
-Makenzie
if you are eager to acquire a student credit card you have to be smart enough in choosing better credit card company. You have to consider the interest rate, credit limit, the benefits and rewards.
Yes those are all things that are beneficial to know about credit cards, and you need to consider before applying for a student credit card.
I ended up applying for something like 4 credit cards for t-shirts, fundraisers, etc. as a college student. I had no idea how it affected my credit rating and I did end up missing a payment once in a while (though I always paid in full).
It ended up benefiting my credit score a great deal but I wish I was more educated. There were much better cards available as far as rewards and sign up bonuses and I can see how when credit was easier to obtain how you could rack up the debt quickly.
That's why it is a very good idea to make sure and sit down with a financial advisor or a parent who knows what credit is before applying for credit cards. That way as you mentioned you don't end up with four credit cards and the possiblity of racking up debt. More college students should be informed about credit information before they are allowed to obtain it.
I just ran across your blog and wanted to make sure that you knew that eCampus.com also rents Textbooks. You can find search through our available rental books here: Rent Textbooks from eCampus.com
Thanks!
Thanks for the tip!
Post new comment