Gina Noe
Register Columnist
RICHMOND —
College students are back. For the next few weeks, things will be a little hectic as they settle into their routines and we adjust to the increase in local population and traffic. Be patient.
One of the biggest challenges of college life is learning to manage money. Surveys of teens say that less than half know how to budget and pay bills. Only one-quarter know how to use a credit card. If you have a family member or friend in college, share the following tips with them and you will be helping a young person develop important life skills so they can live responsibly and independently.
Protect your identity. Keep personal information such as Social Security number, credit card and bank account numbers to yourself. Pick up mail regularly to avoid theft of paper statements. Banking online is a smart idea. Use the Internet carefully. Posting personal information on social media sites such as your mother’s maiden name or your pet’s name can make it easier for hackers to determine passwords and get access to accounts. Make passwords a random mix of letters and numbers. Never respond to e-mails asking for passwords or personal information.
Know the difference between a credit and debit card and how to use them. A debit card is linked to a bank account. Using a debit card takes money directly from that account.
Using a credit card creates a loan. There usually is a credit limit with the card issuer and a minimum payment due each month toward the balance. A charge card is a credit card that must be paid off each month.
Use charge and credit cards wisely. It can take years to pay back large balances. On the flip side, use of credit can help build a good credit history, which is important when it comes to buying a house or car.
So, there are three simple rules to follow when using credit cards:
1) Charge only what you can repay each month except in a real emergency.
2) Look for a card with the lowest rate possible.
3) Don’t apply for more cards than you need.
For more information on financial tips for college students, call the Madison County Cooperative Extension Service at 623-4072.
Educational programs of the University of Kentucky Cooperative Extension Service serve all people regardless of race, color, age, sex, religion, disability or national origin.
