Being a college student brings many privileges and opportunities for young people. But along with these privileges are responsibilities. If you are a student in college or in your freshman year, read on the rest of this article and check out these valuable financial strategies that you can start practicing right now:
On Money Management – Credit Cards for Students
Use your student credit card for schooling purposes. It’s a good thing to have a student credit card so you can build an early credit history for yourself. Nevertheless, uncontrolled use of credit cards can easily lead to bad credit. Thus, a student must be discreet and wise in using a business credit card for buying things or paying bills.
Keep track of your own spending. Managing a credit card for students can be a good training for young people with regards to handling debt. Most credit cards allow cardholders to access their account online so they can closely monitor their personal spending and payment due dates. If you find unfamiliar purchases in your account, call up your issuer immediately to clarify the details in bill before posting your payment.
Create a budget plan. As early as now, make it a habit to plan out your monthly spending. Having a written budget plan will not only help you control your spending, it will also enable you to distribute your allowance effectively.
Keep financial records in a safe place. Always review your monthly credit card bills and other receipts and keep these financial documents in a safe storage. These documents can be indispensable references that you can use in case you may need proofs when filing a complaint.
Protect your personal information. Many college students have been victimized by identity theft and fraud because they failed to protect their personal information. Get to know the tactics used by ID thieves. Be very cautious when providing personal information (Social Security number, credit card number, address, complete name, etc) especially when using Social Networking Communities over the internet such as Facebook, Twitter, My Space, etc.
Be frugal. Frugality is best practiced when you’re young. Find creative ways to save money such as purchasing second-hand text books, comparing prices before purchasing, buying clothes at thrift shops, etc. Do not use your first credit card to pay for something you did not plan to buy in the first place. Recognize the difference between NEEDS and WANTS and be smart enough to say no.
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