Kisha Adams, a 21-year-old junior at Winston-Salem State University, learned to manage money the old-fashioned way: “By making mistakes and learning from those mistakes.”
Spending money that she didn’t have, and having to go without, proved a real wake-up call for her. Adams said it took some time, but she’s learned to live within her $300 a month budget – money that earns from the odd babysitting job and from her parents.
Now when she shops, Adams said she takes her own advice, which is to make a list before going shopping to eliminate getting unnecessary stuff.
Shiddeeqah Tawwab, another junior at WSSU, said money management is not easy. “It seems like I have more bills than money,” the 22-year-old said.
A native of Raleigh, Tawwab said her monthly income is around $1,000, which she earns from a part-time job at the Winston-Salem Housing Authority. Plus, she gets money from her parents. Still, she said it’s difficult to live within her means. Her expenses include paying rent for off-campus housing, as well as cable, phone and light bills. Her advice to other students is “watch every penny” – advice that she doesn’t always take. “I’m the type of person where if I see something I want, I’m going to get it.”
Passing classes isn’t enough to stay on campus nowadays. Passing good checks is crucial, too. Nationally, tuition increased an average of 10.5 percent at public colleges from 2003 to 2004.
Here are some suggestions for making the grade financially.
_ Learn to balance a checkbook. It’s cheaper to spend an hour learning this skill than paying for each bounced check, which costs about $27, according to a Bankrate.com survey of 250 banks in May.
_Budget your money. Set limits on entertainment and food expenses. Look for cheaper solutions to a dull, hungry Friday night _ such as lunch meat and a board game with friends. Never budgeted before? Learn how on www.CreditTalk.com.
_ Use credit cards wisely. Credit cards build credit history, which is good for getting credit on future big-ticket purchases. However, experts warn students not to use a credit card without a compelling reason. “If you’re using your credit card just for convenience, you’re getting yourself further and further behind,” said Jean Ann Fox, director of consumer protection for the Consumer Federation of America.
_ Watch your food costs. If a meal plan is required at your school, sign up for the one where you pay for the fewest meals per week. The meal plan is usually more expensive than buying groceries. So unless you are in love with the cafeteria food, opt to go with the cheapest plan, then take your savings to the store.
_ Make saving money a priority. Computers and automobiles crash. But a rainy-day fund can get you back behind your keyboard or steering wheel. Saving money can also make for a more pleasant life after graduation, Fox said. “You don’t want to spend your 20s bailing yourself out of debt from things you don’t even remember you bought,” she said.
_ Comparison shop for food, clothes and books. It might sound tedious going to several different grocery stores to compare prices. But the practice could save a lot of money throughout the semester. It’s also good to shop around for books if there is more than one bookstore on campus. And if money is really tight, don’t rule out a trip to the second-hand clothing store.
_ Use an online application to speed the student loan process. It could save three to four days, said Denny Welch, cashier manager at the University of Akron. “Online you get to see what you’re doing right away and you see if it was accepted,” Welch said.
_ Stay eligible for financial aid. If you receive aid, be aware of the minimum GPA to retain it. For federal financial aid, students must keep at least a C average, UA’s McNutt said.
_ Apply for loans early to keep from getting kicked out of classes. Don’t be the subject of a horror story about being dropped from classes a few weeks into the semester because the loan still hasn’t gone through. Get it done sooner to eliminate that stress ahead of time.
_ Avoid taxes on stupidity. Parking tickets, library fines and video rental fines are unacceptable for college students who have to pinch pennies.
Mike Raser of Knight Ridder Newspapers (KRT) contributed to this story.