(ARA) – Attending college usually means new books, supplies and computer software as well as meals, coffee and tuition – all of which can really add up.
Maxine Sweet, vice president of public education at Experian, offers up money-saving tips to make sure you can live within your budget this school year.
“Credit cards are not as readily accessible on campuses as in years past, so it’s more important than ever for college students to understand how to use credit wisely and avoid racking up large credit card bills. If you are a student, a few simple steps help you stretch your back-to-school dollars and get on the path to healthy money management,” says Sweet.
Don’t start the school year out with a balance.
Credit plays an important role in your daily life and at life’s most significant moments. Even as a college student, building and maintaining good credit is essential. Big purchases such as a laptop or new books for the semester can add up and also affect your credit history. Your credit report is a record of your past payment history. Credit scores are determined based on the information in your credit report. So if you purchase something you can’t afford to pay back, your payments might be late or missed and that could negatively affect your credit score and ultimately impact your ability to access credit again in the future.
So before you spend, make sure you can afford the purchase. Keeping your balances low compared with credit limits shows that you aren’t tempted to charge more than you can pay. By charging a small amount on at least one card and paying the balance on time, you will avoid paying unnecessary interest and you can demonstrate that you know how to use credit responsibly – which should help you build a positive credit history and strong credit score. Responsible credit use while you are young is the foundation of a strong credit history that will help you get your adult life off to a strong start when you set out on your own.
Establish a budget – and stick to it.
Credit should not be used to live beyond your means. Creating a budget may not sound like fun, but it is vital to staying out of debt. Sign up for a free online budgeting tool and look at your expenses to figure out where you may be able to cut back on unnecessary spending and how you plan to pay for any large purchases you need to make. And don’t forget to record your monthly expenses. If you do need to cut back, don’t be discouraged – you may be amazed at how much the little things add up.
Be informed before you buy.
To help stay within your monthly budget, consider using coupons for groceries and other items you need to buy. Many websites offer coupons and discounts for hundreds of retailers and restaurants across the country. You should also shop around for the best deals on anything you will need to purchase while at school. Carefully review your favorite stores’ weekly ads or consider using a free online service such as PriceGrabber.com, which allows you to compare prices on thousands of items including electronics, furniture, books, movies and even groceries to help you get the best prices. You can even use your mobile phone to help you find the best deals. A recent survey released by PriceGrabber indicates that many consumers are using their mobile phones to locate the best deals. Figures show that about 17 percent of back-to-school shoppers plan to use their mobile phones for comparison-shopping while in the store.
If you’re looking for mobile phone service or auto insurance while at school, LowerMyBills.com lets you compare prices and offerings, and select the service providers that best fit your needs.
As you settle into the school year and see the discounts retailers are offering, don’t be tempted to spend beyond your means. Make sure you really need that new computer before pulling out the credit card. For more credit education, visit www.Experian.com/backtoschool.
