Answers to Top Student Money Questions - Part 2

Continued...

MONEY

If I don't have any money how do I start to save?

Here’s a challenge to get you to start small and allow your saving habit and money to grow. Save all your loose change for 30 days, at the end of each day put all of it in a jar or bottle with a small neck that’s hard to get your fingers into.

At the end of the 30 days take the jar to a CoinStar machine or some other change counter at the bank or grocery store; it’ll spit out a receipt with the total of money you’ve accumulated. Take the slip to the bank and open a no-fee savings account (most banks offer them for students).

Starting small with allow you to build a habit of saving and once you see the money you’re able to save with loose change you can commit to larger amounts. Remember it’s not how much you save but that you start somewhere now.


What's the best way to lower my credit card interest rate?

It’s simple, call the credit card company and ask. The bottom line is credit card companies don’t want to loose your business so if they have to lower your interest rate by a few points to keep your business they will.

Always let them know that there are other companies who want your business too and let them look for ways that they can keep you as a customer. They may even offer fee reductions or waivers as a way to keep you satisfied.


ROMANACE & FINANCE

I’m thinking about getting married after college but my boyfriend/girlfriend is terrible with money, what should I do?

RUN! Ok, seriously – opposites usually attract, but often the very thing that brought you together will drive you apart if you’re not on the same page about how to handle it.

The tough part is that money is a touchy subject but if you’re ready to make a big commitment like marriage you have to be willing to discuss how you’ll handle money and what steps you can take now to get in sync before waltzing down the isle.

I’d suggest you both read, “Cents & Sensibility: How Couples Can Agree About Money” by Bethany and Scott Palmer. It’s a great way to get the dialog going and see how other couples have creatively coped with differences about handling money.


DREAM JOB

What should I do if I can't settle on a major that I really like?

I can remember so much emphasis being put on choosing the right major that I switched mine three times before I “settled” on one.

The truth is a major is only really necessary if you’re intent on becoming a lawyer, doctor, psychologist, or other highly specialized professional. Have a plan for your college career, but be flexible enough to know that things don’t always go according to plan.

So what if you’re a business major and realize after three semesters that teaching is really what you have a love for?

Then go for it. I’m not suggesting that you switch your major every time the going gets tough; but what I do know after having had more then five significant jobs before following my “calling” is too many people choose majors for the money and stay in jobs they hate for all the wrong reasons. Forget the major – follow your heart.


How soon should I start putting money in my 401k plan after I get a job?

As soon as your company allows - it’s free money! Even if you can only save $50 per paycheck you have to start somewhere, there is no such thing as playing “catch-up” if you don’t discipline yourself at the beginning it’ll be much harder to make the switch later on.

Also, look into other pre-tax benefits such as travel allowances; flex-spend accounts and any other opportunities that your company offers to lower your taxable income. On average every $1,000 you put in (the max is $5,000 per year) cuts your tax bill by about $300.


I know it sounds corny, but it’s true; the only stupid question is the one you don’t ask. So remember you can always email me at questions@collegestudentusa.com anytime with any question you may have and I’ll do my best to answer it or point you in the direction of the help you need.

This article may be distributed freely on your website, as long as this entire article, including links and this resource box are unchanged. More Details.