More Tips:
Husker Guide to Money:
8 Tips for Money Success
Avoid the Most
Common Money Mistakes
UNL Students Make
Overspending
Real Student Story
“If only I had known a few things about personal finance my freshman year. I came to campus not knowing anything about money and
not caring. I blew through my savings account - that I worked on
building for 5 years - in less than 2 months. Don’t let this happen to
you. Students have enough stress with classes and work - you don’t
need to stress about money too. Just take a few minutes to learn
some tips for how to have a healthy financial life.”
Have a Plan for Your Money!
Avoid the most common financial mistake students
make – overspending. Use a spending plan, or budget,
to help you determine how much money you have to
save and how much you have to spend. Creating a
budget is not complicated!
UNL students love the automatic budgeting software
from www.mint.com. It’s easy to track your spending
leaks with this great program!
Be Careful with Debt
The most important thing you need to know about
student loans is to ONLY BORROW WHAT YOU NEED!
Student loans should only cover tuition & fees, room
& board, and textbooks. Before you accept a student
loan, carefully review it. Make sure you know what you
will have to repay and when. It adds up faster than you
think!
A good guideline for college students is to plan for
debt payments to be no more than 10% of the expected monthly gross income from their first job. If you
get up to 20%, that’s the start of the debt danger zone!
One great way to minimize debt is to keep applying for
grants & scholarships throughout your UNL career! A
great place to look for scholarships is FastWeb.com.
As for other debt sources, like auto loans, you need to
keep all debt as low as possible. When you graduate,
you want to be able to pay off your loans as quickly as
possible, but you won’t be able to if you have lots of
other debt.
Know the Power of a Credit Score
Your credit score is an indicator of your use and repayment of borrowed money over time. It is a numerical
value ranging from 300 to 850. The average credit
score is around 700. If you have a low score, you will
pay more for mortgages, loans, and insurance, and
may be prevented from getting an apartment, and in
some cases, even a job.
To build a good credit score, the best thing you can
do is MAKE ALL YOUR PAYMENTS ON TIME, including credit card and loan payments. Only open credit
accounts you need and keep debt levels low. Check your
credit report for free 3 times per year at: www.annualcreditreport.com. It’s important to do this to ensure you
are not a victim of identity theft.
Take Time to Prepare for Your Career
No matter how far off graduation seems to be, always
attend on-campus interview and career fairs. It’s never
too early to hone your interview skills and networking is
crucial to landing a well-paying job.
Start Paying Yourself First!
If you want to be a millionaire, you must learn how to
save money! Try this great saving trick - Pay Yourself
First. Include savings as part of your spending plan.
Have a portion of your paycheck automatically put in a
savings account. You won’t even miss it! Experts recommend saving at least 10% of your income each month.
This money can go towards creating an emergency fund
(which everyone needs to cover unexpected expenses
- experts suggest saving enough to cover at least 3
months of living expenses) – or save it to meet your
financial goals - such as graduating debt-free or going
on your dream spring break trip.
Know the Power of Compounding
Compounding means your money earns money – and
the earnings on your money earns money. When you
save or invest your money, you earn compound interest. Even if you only have a small amount invested,
the longer you let it earn compound interest, the more
significant the results.
If you can, start investing in college. A good tool is a
mutual fund (a collection of investments) in a Roth Individual Retirement Account (IRA). Ask if your employer
offers an investment plan, called a 401K.
Get money to save and invest by making savings a
game. Identify your wants vs. your needs. Determine
what’s really important for you to spend money on and
what you can live without. Set financial goals. Have a
plan for how your money will help you achieve what you
really want.
Only Use Credit if It’s Good for You
Don’t let credit cards ruin your life. Use credit only if
you are certain you are able to repay the debt. Misusing
credit cards and carrying large balances typically means
you look forward to a stressful financial future.
Read all application materials carefully – especially the
fine print. Know what fees you may be charged. Also,
know that introductory interest rates, like 0% interest, do
not last. Know how long the introductory rate will last.
Make Sure You Protect Your Money
People buy insurance to avoid financial catastrophe.
Even healthy college students need basic health insurance. Renter’s insurance is also important. It will cover
items in your dorm or apartment.
Don’t give your money to identity thieves. Copy the
fronts & backs of all credit & debit cards and keep the
copies in a safe location. This enables you to call in and
cancel the cards if they are lost or stolen.
• Take Charge of Your Life –
and Your Money
Have a plan! Define your financial
goals. What do you want out of
life? To graduate debt-free? To
save money for a house or a new
car? Make plans to reach your
goals.
• Have a Spending Plan
Create a simple spending plan.
Think of a budget as your financial map. It tells you how much
money you have coming in, where
you must spend it, and how much
you can save.
• Remember to Save Money
for Fun Things
Pay for big expenses as soon
as you get your paycheck. Then
determine how much you have to
save and how much you have to
spend.
Wasting Money
• If You Use Credit, Pay Your
Bill Each Month
Paying interest is a waste of
money and can get you in a cycle
of debt that is hard to get out of.
Make sure you only use credit to
buy what you can afford so you
can pay the balance off each
month.
• Don’t Pay Late Fees Get Organized!
Take an hour to create a filing system to help keep track of financial
paperwork and other documents
– Bill Payments, Savings & Investments, Loans & Credit Records,
Taxes, etc. Also, read your bank
account contracts so you know
what you need to do to avoid
costly bank fees.
Not Avoiding Financial Risk
• Only Take On Debt if It’s
Absolutely Necessary
It’s not easy to get yourself out of
a pile of debt. Remember, you not
only make debt payments, you
pay interest on your debt, too.
To reduce the amount of debt you
graduate with, only use student
loans to cover necessary education expenses like tuition, books,
and school supplies. If you use
credit, pay your balance each
month. Keep all other debts as
low as possible so you can put
extra money towards paying off
your student loans.
• Have an Emergency Fund
Even college students need an
emergency fund to cover unexpected expenses – like car repairs
and speeding tickets. If you have
to use credit to pay for these
expenses, you’ll end up wasting
money on interest.