What College Freshmen Should Know About Money
College freshmen are in their first weeks of school across the country, and for many, it’s their first time living with out their parents. There’s no one to tell them what to eat, when to go to bed – or how to spend their money. So what should college freshmen know about finances? Jill Schlesinger of CBS News discusses this with Here & Now’s Peter O’Dowd.
Personal finance tips for college freshmen from Jill Schlesinger:
- Use an app like Mint or YNAB (You Need A Budget) to help you track your money in real time.
- Get a secured credit card, which works more like a gift card that can be loaded with money, as an alternative to a credit card. This helps you build a credit history without the risk of ruining your credit score – or your parents’.
- Get a job. “I think working is great – and not just internships,” says Jill. “I think working in horrible jobs is not a terrible thing to remind your kids ‘this is why you’re in college, so you don’t end up in this horrible job when you actually graduate.'”
- Put aside some long-term savings if you end up with extra money from your job. Open a Roth IRA and get your parents to match the money you put in the account.
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