Money Tips

College freshmen are often offered multiple new ways to spend money. Apartments, transportation, and tuition all require money. Credit cards are often the payment of choice for college freshmen; however debit cards are gaining popularity. Credit cards and debit cards do not offer the same level of protection from fraud. In addition, both can have hidden charges. Be sure and know the limit on the cards that you carry. Some cards offer a limit of $200-300, however the minimum monthly charge is $30-50$. These cards are designed to take advantage of college students that are trying to build credit. Search for a card that requires a low annual fee or no fee at all.

Debit cards deduct funds from checking accounts. Consequently, it may be easier for a criminal to drain your checking account and you may be responsible for all of the total cost compared to a credit card. Search for a card with a photo ID to aid against criminal fraud.

Credit cards can be used to accumulate debt that can burden any college graduate. Debt cards only allow you to spend what is in your account. You may overdraw your account accidentally. Use both types of cards sparingly. Many college graduates rotate the balance of their credit cards between companies with zero percent balance transfers offered by many credit card companies. If you are planning to get married during or following college, the debt you accumulate may become a burden in the marriage. Spend smartly; avoid debt; and enjoy your future.