|
Want to avoid debt? Saving a
little now can help
By Andrea Olsen
October 25, 2006 | With the average
American household having about $14,500 in debt
(excluding mortgages) and when one in every 73 households
filed for bankruptcy in 2003, it's not too hard to see
that the whole debt trend is raging. College students
across the nation feel this pressure and often succumb
to it. But how can it be avoided through this time of
practically no income, tuition costs, and so many expensive
toys? 
A few bits of advise, amazingly shocking statistics,
and information are very useful (if not just entertaining)
bits of knowledge that can assist in avoiding the red
bottom line.
First, the biggest purchase we all are making is tuition.
The biggest and best help (aside from pleading with
daddy for some extra cash) is financial
aid. If qualified, a student could save bundles
each semester and make it so paying for classes is actually
worth the piece of paper at the end.
If financial aid is out of the question, budget your
money to understand how much a month you must save to
get tuition paid for when it's due. Saving a little
every month, and more during the months you're able
to work more, like the summer, can make tuition able
and easy to pay.
Also, look into tax
savings offered by the government to assist us in
education. There's a HOPE scholarship that can be obtained
by freshman and sophomores. Then there's a Lifetime
Learning Credit for all of us who have the goals to
forever be in school (of feel like school truly will
last a lifetime).
Try saving money each month, about 10 percent each
to a savings of your choice can add up and also just
teach a good habit to get into.
Debt is rampant. The best rule of thumb to live by
is to simply not get caught in it. Live within your
means. But build credit. A very strong way to build
credit is through a credit card. Have the ability to
pay it off entirely each month. If a certain purchase
makes for this to be impossible, don't buy it. Now,
if it's already too late for this advice, go to another
wonderful help for Aggies, the Housing
and Financial Counseling Center. They offer worksheets
to better understand your financial situation and then
free advise on top, something every USU student should
take advantage of while attending. Even if there isn't
a whole lot of money to manage today, the knowledge
that can come from the counseling center can help you
rest assured that every dollar you make when the dollars
come rolling in will be taken care of properly.
Last bit of advice I'll give is to just spend time
looking into whatever interests you. Aside from the
Financial Counseling and the Financial Aid office, there's
also a lot of Web sites that are made to help college
students and just prepare you for the future. Look
into saving tools,
if you have the ability to save, check out savings accounts,
certificates of deposits, mutual funds, bonds, IRAs,
and even stock options. Each of these has different
advantages and disadvantages, so one will probably be
a favorite for you.
Money
used (and saved) wisely today could mean living the
good life, however far away that may seem.
MS
MS |
