Across The Country

Your financial aid package is a big deal. Make sure you know what you have to do to keep the money coming! Read the information about your financial aid carefully, and then file it in your “Financial Aid” folder.

Some scholarships, for example, require you to maintain a certain grade point average or to take part in events sponsored by the organization that awarded you the money. If you have a work-study job, there may be a requirement that says you can’t work somewhere else. Loans have very specific obligations. Some lenders will require you or your parents, to start repaying the loan right away. Others will allow you to start payments six months after you graduate. It’s up to you to keep track of these things.

If you “bounce” a check—write a check for more money than you have in your checking account—the bank will charge you $20, $30, or more for the mistake. Bounced checks also can hurt your credit record. If other banks learn about your bad habit, they may refuse to give you an account.

To avoid this expensive mistake, do the following:

• Every time you write a check, enter the amount into your checkbook register and subtract it from your balance.
• If you use an ATM or have a bank debit card (a card that works like a check), keep the receipts. Write down the transactions in your checkbook register.
• Don’t assume your account balance at the ATM is correct. If you wrote checks that haven’t been processed by your bank yet, the ATM balance will be higher than the amount of money you really have. Call the bank for a current balance.
• When the bank mails your checking account statement each month, compare the bank’s figures with your own and balance your checkbook. If you have questions, ask someone at the bank to help you.

Achecking account may cost money, but it’s a good idea to have one. Using checks is safer than carrying cash. A checking account usually costs less than buying money orders. And, your canceled checks provide a good record of the bills you’ve paid. To decide which bank is best for you, call or visit several banks near your college. Also, find out if you are eligible to join a credit union at your college or elsewhere. Credit unions sometimes offer better deals than banks. Find the best deal for your checking account Here are some questions to ask:

1. Where is the bank or credit union located? Is there a branch or ATM on campus?
2. Does it have special deals for college students?
3. What is the monthly service charge?
4. Does it pay interest on checking accounts?
5. Does the institution charge for every check written? How much?
6. How much does it cost to print 200 checks?
7. What is the fee for a bounced check?
8. How much does overdraft protection cost?
9. Is there a fee to use the ATM?
10. What other fees does the bank or credit union charge?

• Learn to say “No, I don’t need it.”

• Know your income and expenses.

• Make a spending plan and stick to it.

• While shopping, use a list, cut coupons and watch for sales.

• Don’t eat out as much.

• Pay attention to daily spending.

• Lower your phone or cable bills by eliminating unnecessary features.

• Pay more than the minimum amounts against outstanding debts.

Here are a few other steps you can take to safeguard your personal and financial information :

• Don’t give anyone your Social Security, credit card, or bank account numbers unless you know why they need them. If you are unsure, ask the person to send you a request by mail instead of asking for it over the telephone.
• Don’t just throw away papers that have these numbers listed on them. Tear up the papers or shred them. Thieves often go through the trash looking for intact numbers so they can raid your accounts.
• Don’t leave bill payment envelopes at your mailbox for the mail carrier. Someone might take them. Instead, put your envelopes inside a postal mailbox.
• Don’t send your credit card number over the Internet unless you are sure the Web site is secured.
• Tear up or shred unused credit card offers.
• Keep your credit card and ATM receipts in a safe place until you’ve paid the credit card bill or balanced your checkbook. Then tear up or shred them.
• Review your credit card statements and telephone bills for unauthorized use. If you suspect fraud, call the company immediately.
• If you’re a victim of identity theft, report the crime to the police immediately.

You probably have a notebook for each of your classes to help you stay organized. Take a few hours to get your financial life organized, too. You can keep most financial records in your dorm room or apartment. Buy a file box that locks and separate your financial records into file folders. Or keep your labeled file folders in a cardboard box and put the box in a locked drawer or closet.

Here’s one way to label your files:

• Bill Payments. Put your bills in this file to help you remember to pay them on time.
• Checking Account. In general, save your canceled checks and bank statements for five to seven years in case the IRS audits your tax returns.
• College. Keep records about your courses, grades, and credits.
• Financial Aid. Applications, award letters, and notes about important telephone conversations go here.
• Insurance. File your car, medical, and renter’s policies.
• Loan and Credit Records. File loan agreements and payment records for student loans, car loans, credit card
  payments, and so on.
• Receipts and Warranties. Keep this information for major purchases, such as computers or stereos.
• Savings and Investments. File statements from your bank account and any other accounts you have.
• Taxes. Put your tax returns, W2s, pay stubs, etc., here. Records that are difficult to replace, such as your birth certificate and Social Security card, should be stored in a safe deposit box at a bank or in a fire-resistant box at home.