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On the Right Track

Start getting your finances in order

On the Right Track


July 2008

As you near the end of your high school career, you’ll probably start preparing for college by visiting campuses, paying close attention to your grade-point average and shopping for all the things that will make your dorm room feel like home. While you’re at it, it’s a great idea to start getting your finances in order, too.
The earlier you start being financially responsible, the better chance you’ll have for a future that’s free from financial worries.

If you’re not in the habit of budgeting your money, that’s a good and logical place to start.

“Start making a habit of doing a budget now. A budget is telling your money where to go instead of wondering where it went,” says Dave Ramsey, radio talk show host and best-selling author of The Total Money Makeover. “You don’t have to start with the perfect month. Start where you are. Write down what you will have this month in income and expenses. Spend all your income on paper before the month begins. Do it all on purpose, on paper. Then you’ll have a game plan.”

Here are some other things you can do to put yourself on the right financial track:

1. Apply for grants.
Try to avoid student loans and credit cards.

“The average college graduate in 2002 graduated with over $17,000 in student loans,” Ramsey says. “Add another $6,000 in credit card debt for the average student, and the typical graduate walks across the platform with $23,000 in debt before they get their first job. That’s a terrible way to begin a career.”

2. Choose a good bank.
Watch out for hidden ATM and monthly fees, and be sure to choose a bank that offers free checking with no minimum balance. It’s also a good idea to choose a bank that’s accessible anywhere, especially if you’re going to college away from home.

3. WORK ON CAMPUS.
“If you need to, attend an affordable local college first to get your first couple years of required classes over with,” Ramsey suggests. “Then transfer to the school of your dreams.”

Many schools even offer work-study programs that allow you to work on campus to help offset the cost of your tuition.

4. Watch credit cards.
Companies often visit college campuses and bribe cash-strapped students to sign up with free T-shirts and Frisbees. But what you get with those freebies are sky-high interest rates that can cause you to pay nearly twice as much for purchases made on credit cards unless you pay your balance in full every month.

5. Get real.
Understand that you can’t have everything you want. Make wise choices about how to spend your money, and know there are consequences for poor spending habits. If you buy that CD or new outfit today, you might not have the cash to go to the movies with friends tonight.

Story by Jessice Mozo
Photography by Jeff Adkins


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