Money Secrets for Freshmen: Secret #4

Money Secret #4: Avoid Credit Mistakes that Could Haunt You Long After College

Before getting a credit card, understand the importance of credit scores. Building a credit score will affect your future, including determining how much you will pay for borrowed money. If you do not manage credit responsibly, you may be prevented from getting your dream jobs. Many employers now check credit scores to help determine how responsible job applicants are.

If you are going to use credit, you need to make sure you:

• Have the self-discipline to live within your means
• Are not an impulse buyer
• Understand the importance of paying your bills in full each month to avoid wasting money on interest
• Pay your bills on time – the #1 thing to do to build a credit score
• Use 30% or less of credit available
• Don’t open too many accounts too quickly – Experts suggest having 1 or 2 accounts and work on building a good account history

Money Secrets for Freshmen: Secret #3

Money Secret #3: Avoid Wasting Money

Read bank or credit union account contracts! Many students do not know how to avoid fees, like transfer fees or international fees.

Be proactive about avoiding identity theft. Copy the front & back of all credit & debit cards and keep the copies in a safe location. This enables you to quickly report your card lost.

Avoid NCard regrets. The NCard can be used at retailers around campus. Many students habitually overuse their NCard. Students should recognize the importance of only using their NCard if they are sure they can pay the monthly bill in full. Also, avoid student bill late fees. Bills are due the 12th of every month and can be paid on MyRed.

Do some research before moving off-campus. It’s not always cheaper! Recognize that food & transportation costs can be expensive. If you do move off campus, know that renter’s insurance is necessary, that learning how to cook vs. eating fast food can save you over $300 per month, and that you need to fully understand your lease BEFORE you sign.

Use campus services! Your student fees pay for many services, including UPC concerts, Lied Center Discounts, Campus Rec, and more!

Money Secrets for Freshmen: Secret #2

Money Secret #2: Minimize Student Loan Debt

ONLY BORROW WHAT IS NEEDED FOR NECESSARY EXPENSES! Many students think they should borrow the entire amount that is offered to them. We encourage you to plan to graduate with as little debt as possible. Use our interactive Student Loan Planning Guide to help you minimize borrowing.

Another great resource to help you determine a reasonable amount of student loan debt considering your future career is the Student Loan Adviser Calculator. Experts recommend students plan for after-college debt payments to be no more than 10-15% of their monthly income.

Keep track of how much has been borrowed at nslds.ed.gov. Tracking amounts can help students plan for repayment. Familiarize yourself with repayment plans & forgiveness programs at studentaid.ed.gov.

Be careful with student loan refunds. If you borrow more than you are billed from UNL, you will receive your extra funds in the account that is set-up in MyRed. Save your refund in a savings account and only transfer the funds to checking when bills are due.

If you have unsubsidized loans, which accrue interest during school, interest payments can be made at: myedaccount.com.

Money Secrets for Freshmen: Secret #1

We're busy getting ready for New Student Enrollment! We're sharing our best-kept money secrets for new freshmen. Following is the first of 5 money secrets!

Money Secret #1: Save Money Through Practicing Good Habits

Have an emergency fund for unexpected expenses. If you have an emergency fund for unexpected expenses, you will not have to borrow money and pay interest charges.

Keep all debt as low as possible. The less debt you graduate with, the more money you will have after college to put towards your financial goals. Use our interactive Student Loan Planning Guide to help you minimize borrowing.

Develop financial goals to help avoid impulse spending. For example, if you want to study abroad, saving for your trip can help you avoid unnecessary purchases.

Avoid the most common student money-wasting mistakes. During the academic year, students commonly spend: $430 on eating out, $540 on entertainment, and $540 on personal items. Solutions = Use your meal plan or learn how to cook, attend free UNL entertainment events, and identify your wants vs. needs.

Have a spending plan. Having a plan for your money will help you spend your money wisely, and is good practice for managing your money after college. Check out mint.com, a free tool that will help you easily create your own spending plan.