The following article can be reprinted in UNL student publications.
For questions, please contact the UNL Student Money Management Center at (402) 472-9093.
Top 10 Tips for Getting on the Path to Financial Success!
Written by Representatives of the UNL Student Money Management Center
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Abide By the Millionaire’s Secret - Live Within Your Means
Avoid the most common financial mistake students make – overspending. Use a spending plan, or budget, to help
you determine how much money you have to save and how much you have to spend.
Creating a budget is not complicated! Hundreds of UNL students use mint.com, which automatically categorizes
all your transactions and creates easy-to-understand charts so you can see where you’re spending your money!
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Try to Save at Least 10% of What You Earn
This money can go towards creating an emergency fund (which everyone needs to cover unexpected expenses) –
or save it to meet your financial goals - such as graduating debt-free, going on your dream spring break trip, or
having enough for a down payment for a house when you graduate.
Try this great saving trick - Pay Yourself First. Include savings as part of your spending plan. Have a portion of your
paycheck automatically put in a savings account. You won’t even miss it!
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Be Smart About Student Loans!
Before you accept a student loan, carefully review it. Make sure you know what you will have to repay and when.
It adds up faster than you think!
A good guideline for college students is to have no more than 10% of the expected monthly gross income from
their first job going towards repayment of all loans. 15% would mean you probably will not be able to buy a new
car, and 20% is the start of the “danger zone” when loan debt is out of control.
Research loan forgiveness programs to see if they apply to you. For example, the Public Service Loan Forgiveness
programs. This program discharges any remaining debt after 10 years of full-time employment in public service
and after you’ve made 120 payments.
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Look for Free Money for Education Expenses
Never stop applying for scholarships! Make sure to apply for UNL Undergraduate scholarships. The application is
available in November on MyRed and must be completed by February 1st. Also look for scholarships through your
specific college.
A great place to look for outside scholarships is FastWeb.com. Create a profile and FastWeb will automatically
match you up with scholarships you qualify for.
Do you have a job? Ask your employer is they offer employee education benefits. Your company might pay for a
portion of your education expenses.
Consider applying for public service programs, such as Americorps. In exchange for your service, you will receive
money for your education expenses.
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Only Use Credit if It’s Good for You
Use credit only if you are certain you are able to repay the debt. Misusing credit cards and carrying large balances
typically means you look forward to a difficult, stressful financial future.
Read all application materials carefully – especially the fine print. Know what fees you may be charged. Also,
know the introductory interest rates, like 0% interest, do not last. Know how the long introductory rate will last
and what the interest rate will jump to.
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Know Why a Good Credit Score is So Important
Your credit score is an indicator of your use and repayment of borrowed money over time - a numerical value
ranging from 300 to 850 - average of 700. If you have a low score, you will pay more for mortgages and loans, and
may be prevented from getting an apartment, and in some cases, even a job.
To build a good credit score: Make all payments on time, Only open accounts you need, and Keep debt levels low
- you only want to use 30% of your available credit.
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And don’t pay for a credit report! Get 3 copies of your credit report each year for free (one from each of the 3
credit bureaus) at: www.annualcreditreport.com.
Start Investing as Soon as You Can
If you can start investing while you’re in college, you’ll have more money when you retire! Your money grows
through the magic of compounding. Compounding means your money earns money – and the earnings on your
money earns money. Even if you only have a small amount invested, the longer you let it earn compound
interest, the more significant the results.
If your employer offers a 401K retirement plan, consider contributing to it. Your employer will match a
percentage of the amount you contribute, which is FREE MONEY. The money that goes into your plan is typically
invested in stocks and bonds.
Another good investing option for college students is a Roth IRA. Before you invest, make sure to talk to a trusted
relative or professional to make sure you’re on the right path to becoming a long-term, profitable investor.
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Take Time to Prepare for Your Career
No matter how far off graduation seems to be, always attend on-campus interview and career fairs. It’s never too
early to hone your interview skills and networking is crucial to landing a well-paying job.
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Make Sure You Have Adequate Insurance
People buy insurance to avoid financial catastrophe. Even healthy college students need basic health insurance.
Renter’s insurance is also important - it will cover items in your dorm, apartment, or Greek house.
Make sure you’re getting the best deal for car insurance. Shop around at least once a year. Compare prices from
3 different companies. Also, make sure you’re getting all the discounts you qualify for, such as a safe driver
discount.
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Become a Master Saver
Make saving a game. Identify your wants vs. your needs. Determine what’s really important for you to spend
money on and what you can live without. Set financial goals - have a plan for how your money will help you
achieve what you really want out of live - to help you curb impulse buying.
Many college students never pay full price for any item or service. Sign up for discount sites, such as
Groupon.com, LivingSocial.com, JournalStar.com - Today’s Deal. Join the special savings programs at stores you
frequent often, such as CVS. You’ll get coupons and know when sales are.
Source: UNL Student Money Management Center, http://www.unl.edu/smmc
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