This month's theme here at examiner.com is Back to School. While I have discussed shopping for back school, I feel I should talk about where this back to school money comes from. Yesterday morning on Good Morning America, the financial consultant Mellody Hobson made some really interesting points about money management in college. I found her discussion on credit cards especially interesting. A new law is going into effect that requires parents co-sign for a credit card issued to any individual under 21 years of age. This increases the likelihood that parents will keep a close watch on their child's spending as well as the limit can be set very low. Something that Mellody doesn't mention is that it is often very difficult to obtain a credit card after graduation. This may have changed, but without having that established line of credit while in college, credit card companies are then hesitant to grant a credit card to someone without an established line of credit. By having a card with a $500 limit, college students are not only learning financial responsibility but they are establishing credit (and hopefully a good credit score) over a long period of time. Keep in mind that good credit scores come from not having deliquent accounts and from having a line of credit established for a long period of time. There are several other factors that influence your credit score, but I believe those two reasons will effect a college student the most. And to really keep that credit score looking great, pay off your credit card EVERY MONTH. Maintaining a credit card with zero balance is great for you credit rating!
Another major place college students turn to as a source of money is, of course, the student loan. If you obtain your student loans through Sallie Mae, I strongly recommend setting up a Upromise account and linking the account to your Sallie Mae loan. Every time your Upromise account reaches $20 or higher, it transfers that money to Sallie Mae for paying your loan, whether or not your loan is in repayment. This is a free service that helps you pay your loans down. You can sign up credit cards and earn money by using your credit card at certain restaurants and by purchasing online through the Upromise website. You can sign up your grocery store discount cards (such as Kroger and Marsh) and load coupons to the card. You won't get a discount on your grocery store purchase, that money will be applied to paying your loan instead. Also, you can sign up to take surveys through Upromise. Though it may take some people quite a long time to earn that $20 mark for paying on the loans, it is a free $20 and therefore, in my opinion, totally worth it.
Also, now is the time to start looking for a work-study job on campus. Having a work-study position is dependant on filing the FAFSA and approving work-study funds on the financial aid report. Once you have completed that, you can start to apply to possible work study jobs on campus. Jobs are available in labs, cafeterias, libraries, as tutors, etc. The best way to find work-study postings online is by searching work study at your school's website (at IUPUI, searching work study brought up this page, which not only explains what work study is but also how to find positions at the IUPUI campus). This should direct you to the current job postings. And do this soon, the jobs will fill up quickly with everyone returning to school!
Basically, make sure to manage your money and don't put yourself in a situation where you cannot pay your bills.
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