With a brand new of experience of college or graduate school beginning, one tends to feel liberated by their choice of living away at school. Along with the new sense of freedom also comes the duty of responsibility. This often goes overlooked when move-in day occurs and can lead to speed bumps ahead in your future.

Follow these recommendations to make sure you don’t end up behind the 8-ball of debt.

Curb Spending.

Many High School students have a job during their last few years of high school, allowing them to spend their money a bit more freely. If you live away at college, most students end up significantly cutting their hours of work, or just quit altogether. While the income of a college student typically declines, the spending habits do not. Cut back useless expenses (eating out, shopping at the mall, buying that awesome collectible on eBay) on yourself and allow yourself to get that extra breathing room financially.

Try to avoid Credit Cards.

There’s a reason why banks are constantly on campus: Students love signing up for free stuff. Sure they have incentives if you “Sign Up Today!” but long term, banks have historically made a killing because of fees and surcharges, and terrible rates because of students failing to read terms and conditions. If you do choose to take the plunge to get a credit card while away, be sure to find the best rate possible, best rewards/bonuses, and the lowest (or no fees.)

If you want to use credit cards, we can show you how to use them the write way.

For the best way to pay off your credit card, read Making Monthly Payments: Avoid The Death Trap

Get It With Debit.

I personally disdain credit cards, but I do see their use. On the other hand, however, why not get some of the benefits of credit cards but with borrowing the money… like a debit card? The only downfall of debit is that you must have the money when you buy something with the card, although some of upsides include that it teaches responsibility and balancing a checkbook, since debit cards are linked to your checking account.

Banks often offer free credit cards (free meaning no fees) with rewards. The Visa Debit Card from Commerce Bank, for example, offers the same Visa rewards that regular credit cards offer, but Debit purchases only get .5 of a point per dollar, rather than 1 per dollar. I’d rather get that free gift card in double the time and not have to worry about any APYs or fees.

Why Buy The Cow… (When you can get something just as good for free?)

To read about prepaid debit cards, click here. These are hot on college campuses because you can’t go broke using them, nor will you hurt your credit care.

Use available resources.

Many college bookstores and organizations or businesses offer student discounts; take advantage of it! AMC Movie Theatres offer discounts when you bring your ID, and many smaller retail stores have similar deals. If you’re unsure, just ask. For stores, they’d rather give the discount and get the mass patronage from free word-of-mouth advertising.

Have any ways you save money while living away? Tell me how below!

For Eight Savings Strategies For Students, click here.

For more articles on managing your credit payments and score, click here.

For more savings articles, click here.

For more of my articles, click here.

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