Managing Money

School loans, credit cards, cell phones, rent, gas, groceries, school supplies… Forget the days when your parents paid for everything. In college, you’ll have to face the fact that your bills are your responsibility. College senior Meghan Leary works three jobs to overcome her financial needs and remain debt free.

”Being responsible with my own money taught me how to accept and understand my financial limits so I don’t get into trouble or debt,” says Leary.

According to a national survey conducted by Experian Consumer Direct on consumer credit card usage, U.S. consumers have an average of three credit cards. Approximately 46 percent of the U.S. population has at least two credit cards; 10 percent have more than 10.

Leary currently has three credit cards, two debit cards and a cell phone, and she will have approximately $25,000 in student-loan debt by graduation. She also lives off campus, which means she not only pays rent monthly, but for utilities and groceries as well. And don’t forget about spending money, or gas for commuting to school and work.

“I always figure out when my bills are due first and then budget my money,” says Leary. “It’s important to be responsible and self-sufficient for your expenses. It will pay off when you’re out of college and completely on your own.”

Megan Webb is a senior at St. John Fisher College in Rochester, N.Y., and an intern for The Next Step Magazine.

HOW CAN YOU MANAGE YOUR CREDIT?
Have a plan to pay down your balance over a manageable period of time (four to six months) before putting significant new purchases on that same card. Keeping your credit card charges below 50 percent of your limit will help your credit score.

Be aware of all fees and charges associated with your credit card. Make sure your monthly payment more than covers the fees and charges in order to lower your overall balance.

It’s a common fallacy that closing credit cards will always help your credit rating. Focus more on the amount of available credit being used, making sure you are not overextending your debt beyond levels you can manage. Closing good accounts could actually hurt your credit rating.

Having credit cards in your wallet can be a good way to build your credit history. They provide a safe and convenient means of paying for goods and services and can be useful in case of emergencies. However, even though you have available credit, you don’t have to use it.

Due to credit cards being used at physical retail locations as well as for online shopping and phone purchases, there is a chance that your credit card number could be used fraudulently. Therefore, you should monitor your credit card usage, charges on your monthly statements and your overall credit profile on a regular basis. This also helps you keep track of the amount of outstanding debt you have and helps you budget and manage your finances.

Source: Experian national survey

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