By Karen Lloyd

Assistant Dean of Students

Daily, there are more reports about struggling economy. In the midst of this uncertainty sound financial management is more important than ever.  Following are money mistakes made by college students and some suggestions to stay financially sound.

1. Set a budget. A budget helps track expenditures and provides a feeling of control and peace of mind. It also helps to have enough money to make it through the school year.

2. Shop for the best cell phone deal. Avoid exceeding free minutes.

3. Use a debit card. This gives instant access to money and limits spending to what’s in the account.

4. Avoid credit card debt. According to “Money and the College Student: Leave College Without Credit Card Debt”, the average undergraduate college student has four credit cards and $2,169 in credit card debt. According to Nellie Mae, the nation’s largest maker of student loans, the average graduate student has $5,800 in credit card debt. At interest rates of 15-18 percent, it could be 10-15 years before the credit card is paid off.

5. Avoid ruining your credit score. Many graduates will be required to complete a credit history as a part of the employment application process.  Late credit card payments, maxed out credit lines, or too many credit cards result in a poor credit score. This will make it difficult to get an apartment, obtain a car loan or find a job.

6. Avoid wasting student loan money. Use student loan money to finance education, not lifestyles.  Remember, tuition, room and board, and textbooks are smart ways to spend money. Buying CD’s, expensive clothes and eating out are not. Student loans must be paid off, so use the money wisely.

Making smart money decisions will beneficial in the long-run and result in financial freedom.

—Resources: “Money and the College Student: Leave College Without Credit Card Debt” and “College Credit Crisis.”