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Your Financial Health

Your Financial Health

Avoid Credit Cards
If you use credit cards to supplement your income, you will find yourself in debt faster than you can say, "charge it!" Digging out of the hole you created can be no fun at all. Think about this: let's say you rack up $2,000 in credit card debt. That may not sound like much until you think about what happens if you make only the minimum payment on a $2,000 debt with an interest rate of 18%. 30 years of your life will pass before that original $2,000 is repaid! And you will end up paying over $5,000 in interest - that's more than 2 1/2 times the original debt! [Tips on using credit cards wisely]

Protect Your Identity
Identity theft occurs when someone uses your name and personal information, such as social security number or credit card numbers, for fraudulent purposes. You can protect yourself from identity theft by watching for warning signs and knowing what to do if your personal information has been compromised.[Tips to protect yourself]

Monitor Your Credit
Always check your credit report annually to be sure that your information is correct and has not been compromised. You can order a free copy of your credit report once a year from each of the three national credit bureaus. It is a good idea to stagger your request for each of the free credit reports throughout the year rather than request all three at the same time. This way you will be informed about your current credit throughout the year.

Borrow Sensibly
A college education is one of the best investments you can make. Federal student loans can be very useful in helping you cover your education and living expenses. Remember, any money you borrow now must be repaid later. The decisions you make now will affect your financial future. Know what you are getting into before you borrow. [More Information]

Create a Budget
Do you ever look in your wallet and wonder where your money went? The best way to keep track of your spending is to create a budget. The first step to developing your budget is to estimate your monthly income and expenses. Be realistic about your expenses. For help, use a budget calculator. Remember, college is a short time of sacrifice. By keeping your “wanter” in check, you will enter your career without being saddled by debt that may take most of your life to repay.

Save Your Money
Even though money may be scarce while you are in college, it is a great idea to get into the habit of saving some of your money. It is always nice to have a little stashed away for a "rainy day!" Try to save a little money from each paycheck, your birthday and Christmas money, tax refunds, or any other extra you can. You will be happy you did!