2008 Woodie Awards
College Students Can Save Money, Strike it Rich
Mark Gaines: for the Muleskinner
Issue date: 2/28/08 Section: Opinion
You do not need a credit card in college!
Something about not being in debt for the rest of your life sounds pretty good, right? Some advice: if you can't afford something, then you probably do not need it.
Credit card companies know that college students are more likely than any other group to buy with a credit card. They offer "free" stuff in strategically placed locations, like pizza and sub shops, to get you to sign up and use their card.
If you get a credit card and just pay the minimum payment each month, it will take forever to pay it off, and you will pay hundreds, if not thousands, of dollars in interest.
If you do get a credit card or have one now, make it a high priority to pay it off now!
A much better option is a debit card. A debit card automatically takes money out of your account so you can only spend money that you have.
Save now
If you start saving $100 a month at age 25, you will be a millionaire by the time you retire! If you wait until 35, that $100 a month will only add up to $300,000 by the time you retire.
You don't have to put away a lot of money every month, but make it a habit to put something in savings. When you desposit a check, pay yourself first by considering a "saving bill" that must be paid every month. If you get into a habit of putting something in savings, you will be more likely to continue to save.
Be Smart About Loans and Grants
Sign up for all the scholarships and grants that you possibly can. Grants are free monies that do not have to be paid back - fill out the freakin' form! Know if your loan is subsidized or unsubsidized. With subsidized loans, the federal government pays your interest while you are in school.
Unsubsidized loans require you to pay the interest or allow you to defer the interest until after you graduate - the interest still accrues, but you are not required to pay it until after you graduate.
Look at it this way, if you spend 20 minutes of your time writing a short essay or filling out an application for a $500 a semester grant/scholarship for four years, you just made an equivalent of $12,000 an hour - do you think it's worth it?
Watch the Caffeine
Caffeine in moderation is OK for you, but a lot is not good for you. It can also be expensive. For instance, by not having a double latte every morning and by eliminating vending machine sodas every day, you can save upwards of $1,500 a year!
Quit using tobacco
You can save about $1,800 a year by not smoking or chewing. If you were to save the same amount of money you spend on tobacco, you could be a millionaire, and, more importantly, healthy when you retire.
Drink less alcohol
You all know about everything there is to know about the harmful effects of alcohol to the human body. There is nothing wrong with only having two or three drinks at a party. If your friends think you're a "wimp," talk to them about your decisions or find new friends.
Something about not being in debt for the rest of your life sounds pretty good, right? Some advice: if you can't afford something, then you probably do not need it.
Credit card companies know that college students are more likely than any other group to buy with a credit card. They offer "free" stuff in strategically placed locations, like pizza and sub shops, to get you to sign up and use their card.
If you get a credit card and just pay the minimum payment each month, it will take forever to pay it off, and you will pay hundreds, if not thousands, of dollars in interest.
If you do get a credit card or have one now, make it a high priority to pay it off now!
A much better option is a debit card. A debit card automatically takes money out of your account so you can only spend money that you have.
Save now
If you start saving $100 a month at age 25, you will be a millionaire by the time you retire! If you wait until 35, that $100 a month will only add up to $300,000 by the time you retire.
You don't have to put away a lot of money every month, but make it a habit to put something in savings. When you desposit a check, pay yourself first by considering a "saving bill" that must be paid every month. If you get into a habit of putting something in savings, you will be more likely to continue to save.
Be Smart About Loans and Grants
Sign up for all the scholarships and grants that you possibly can. Grants are free monies that do not have to be paid back - fill out the freakin' form! Know if your loan is subsidized or unsubsidized. With subsidized loans, the federal government pays your interest while you are in school.
Unsubsidized loans require you to pay the interest or allow you to defer the interest until after you graduate - the interest still accrues, but you are not required to pay it until after you graduate.
Look at it this way, if you spend 20 minutes of your time writing a short essay or filling out an application for a $500 a semester grant/scholarship for four years, you just made an equivalent of $12,000 an hour - do you think it's worth it?
Watch the Caffeine
Caffeine in moderation is OK for you, but a lot is not good for you. It can also be expensive. For instance, by not having a double latte every morning and by eliminating vending machine sodas every day, you can save upwards of $1,500 a year!
Quit using tobacco
You can save about $1,800 a year by not smoking or chewing. If you were to save the same amount of money you spend on tobacco, you could be a millionaire, and, more importantly, healthy when you retire.
Drink less alcohol
You all know about everything there is to know about the harmful effects of alcohol to the human body. There is nothing wrong with only having two or three drinks at a party. If your friends think you're a "wimp," talk to them about your decisions or find new friends.
Be the first to comment on this story