Some more credit facts

I have been thinking alot about when I was in college and how life worked in the 80's. I went to school about 4 hours from my childhood home. There were no cell phones, email, instant messaging, or other forms of instant communication. My mom would write me a letter and tell me when she was going to call so I would be home to answer the phone. Long distance was expensive and we always made the calls quick and not during peak hours.

I had a checking account - no debit or credit cards. I ate in the school cafeteria no other options existed on a meal plan. I would grab extra fruit or bagels to have food in my room. I waited for boxes to arrive from home or family members for home cooked treats and hopefully a few dollars.

Every time I spent money it was literally a very conscience decision. From splitting a pizza with my roommate, going to a dance club, what personal items I purchased, to how I bought my books for my classes. I can still remember what it felt like to ponder these purchases - because to have 1 item meant I didn't have another. It was not a bad feeling it was one of being responsibly and respecting my limits. It also help me really prioritize what was important to me. I still make my financial decisions with the same awareness. I live under my financial means and really enjoy everything I choose to spend my money on.

Here are some financial tips for high school and college students... from the Credit Abuse Resistance Education Program.

1. Create a realistic budget.

2. Open a savings account.

3. Look for ways to save money. We have discussed this time and time again.

4. Use cash, debit card or checking out instead of credit.

5. Avoid credit card debt.

6. Pay your bills on time.

7. Pay debt off as quickly as possible.

8. Minimize student loan debt.

9. Avoid - impulse shopping, expensive behaviors like gambling and drugs, opening multiple charge accounts, pawn shops, car loans longer than three years, rent to own and payday establishments. Do not open credit cards to get free stuff. Those cards HURT your credit.

10. Remember the consequences of abusing credit cards and other consumer debt. Don't lose out on a job, student loans, admission to graduate school, apartment or car loans because of too much credit card or other consumer debt. Today everyone is pulling credit reports and suing them to make decisions about your future.

I don't know when this changed but when I was in college my parents weren't concerned that I worked third shift in a hospital on weekends and part time at the Medical bookstore while going to school and having a social life. I was able to manage all that and keep my student loans to a manageable amount. I am not suggesting everyone should work 2 jobs but I am asking why is not possible to work at least 1 part time job to cover your extra expenses or keep your loans to a minimum. This parent attitude (in my thinking) does not help you learn to manage your time, finances and choices. My kids are very active in college activities, work part time, take student loans, and perform well in their classes. They are accountable for their life and choices. As parents we assist with expenses (our choice) and support their choices. Isn't that what college is all about - learning to make responsible decisions and learn to live on your own?

Stay tuned............