It’s an exciting and scary time in many young adults’ life – heading to college. There’s so much freedom in being a college student. It’s a four-year adventure! However, sometimes as young adults when we aren’t under the watchful eye of our parents we can get carried away especially when it comes to money and credit.

As a poor college student it’s so easy to charge unnecessary expenses on a credit card. I have a confession to make. As a college student my only purpose for getting a credit card was to go shopping and wear the kind of clothes I desired. I was, however, responsible enough to pay my credit card off. Yet, I could have used that money on something more useful. Don’t fall into the “I’ll charge everything now and pay it back later when I get a full-time job” trap that so many students fall into. Here are some financial tips that were beneficial to me as an undergrad.

Look for student discounts: There are all sorts of deals out there for college students. You just have to take the time to do the research and look for them. Take advantage of student discounts at the movies, museums, theatre, and even some gyms offer a discount for students. The extra savings go a long way.

Use credit card sparingly: Your undergrad years are a good time to establish credit because you’ll need it later when you want to purchase a car, home, rent an apartment, or be considered for employment. It’s also an opportune time to destroy your credit score with frivolous purchases on a credit card that you can’t afford to pay back. Credit should be used as a tool of convenience not an extension of your income. If you purchase a large ticket item on a credit card work out a budget to get the debt paid off as soon as possible and don’t continue to charge expensive items on a credit card without first paying it off.

Don’t take out unnecessary student loans: Student loans have become the norm for most college students. However, only take out enough to pay for educational expenses – not personal expenses. I knew some students taking out extra loans just to live off or use for spending purposes. This is one of the worst financial mistakes you can make. It may seem like free money at first, but you’ll regret it when you land that dream job and all your disposable income is going to pay back loans you didn’t need in the first place.

Save, save, save: Did I mention save? A lot of young adults neglect saving at an early age because they just don’t see the benefit or don’t have the discipline. If you begin saving a little every month you’ll be surprised at how fast that money grows over time. At the end of each semester I got a refund check. Instead of spending it I saved it and by the end of my senior year I had enough money to put a down payment on a car and to help pay for expenses after I graduated.

Open a checking account: I opened my checking account when I was a sophomore in college. It was one of the wisest financial decisions I made. My paychecks went straight to my account and funds were available immediately on payday. I no longer had to go the local supermarket to cash my check and get charged a fee. Checking accounts are fast, easy, convenient, reliable, and a safe way to store your money.

Spend wisely: Don’t spend all your extra money eating out, shopping, or on entertainment. If you live on campus use your meal plan instead of eating out. Try taking the bus sometimes and save money on gas. Or, have a movie night at your apartment/dorm instead of going out and buying a movie ticket and refreshments.

Finally, it’s important to keep track of your expenses – know what’s going out and what’s coming in. The best way to do that is to create a budget. A sound budget is your best friend when it comes to finances.

For more about college and credit, check out:

New & old ways to pay for an education
Money management for the first time adult
Budget decorating tips from the dorm

“I’ll bring it back on time … I’ll bring it back late…. Oh, what are you going to do? Charge me a nickel?” –Jerry Seinfeld, Seinfeld Episode 22, Oct. 16, 1991

In some cases, they won’t even charge you a nickel.

The Rangeview Library District in Colorado has made the news recently for being the first district to ditch the Dewey Decimal System for a new system that organizes materials by categories instead of numbers—much like you see in the bookstores. While this news is interesting to bookworms, readers who are also money-minded might be interested in knowing about another very interesting change recently made by the Rangeview Library District: They are fine-free.

According to the District’s press release, the library decided to stop charging fines earlier this year “to enhance positive experience customers feel when they come to the library.” To me, it is a suprising move considering that many libraries are raising their fines and fees to make up for a decrease in funding. Some are even going as far as hiring third party agencies to collect—possibly impacting the credit scores of delinquent readers.

While hiring a collection agency might seem extreme, some library systems rely on the income from fees to operate, making fee elimination financially unrealistic. For example, the Chicago Public Library expects $3.2 million this year in fine revenue.  Yet smaller systems might find that the time and effort it takes to collect fees neutralizes any financial benefit.

As someone who regularly pays library late fees, I have mixed feelings about the issue. While I always feel a little bit sheepish about it, I am happy to pay my fees because I know that the library offers a great deal. However, I think that the elimination of fees seems easier and might encourage lower income families to use the library more regularly. What do you think? Does it make any difference to you if a library is fine-free?

I should mention that the Rangeview Library District does charge a replacement fee for items still not returned 25 days past the due date (but even I should be able to make that deadline!)

A new program from the Department of Education aims to make student loan repayment more manageable for people whose loan size is out of proportion with their income and family size. The Income Based Repayment (IBR) Plan reduces monthly student loan payment amounts by lengthening loan terms for people who qualify.

This program works for both old and new federal loans for any type of education; however, it is not for everyone. For example, not everyone will qualify (to see if you are eligible for the new plan, use the IBR calculator*) and it is important to understand that lengthening the loan terms could cost you more in interest over the long run. In addition, there are some types of loans, such as federal loans parents take out to pay for their child’s education, that are not eligible.

While the IBR Plan may provide welcome relief to qualifying borrowers struggling to make high monthly payments, many future students may be dismayed by the thought of paying for their education 25 years after graduation. If this is a situation you and your college-bound child would like to avoid, there is good news. Opportunities for funding your child’s education are diverse as the career paths they afford.

-Private scholarships. There are thousands of private scholarships awarded every year that fall outside of the university’s domain. Private scholarships are not limited to students with perfect grades and packed resumes. Artistic talent, creative writing skills, lineage, interest in a particular field of study or being a member of an underrepresented group can all help you secure a private scholarship. However deadlines can be as early as July, more than a full-year before the student plans to enter college.

-Section 529 plans. Section 529 plans are state-sponsored college savings programs. The two major types are Prepaid Tuition Plans, which lock in current tuition rates, and State College Savings Plans, which offer more flexible investing options. Both are useful ways for families to save for their children’s college education.

-College controlled aid. Your individual college may be able to offer a short-term installment plan that splits your tuition into equal monthly payments. Many schools also offer their own merit scholarships.

-Military Aid. The U.S. Armed Forces offer several programs to provide students with money for school. The most well known is the Montgomery G.I. Bill that provides a cash education incentive to encourage you to join and serve a tour of duty.

Finally, don’t forget to enlist the student’s help; money earned from a part-time job can cover incidentals, such as books. Keep an open line of communication with your child; unfortunately, they might not be learning about personal finance at college.

*If you’ve already accumulated student loan debt, but do not qualify for the new program, check out a previous post titled How to repay your student loans.