College finances 101

Save your pennies! The best advice I could possibly give the incoming class of squeaky clean, fresh-faced ex-high schoolers who are about to commence learning independence is to fiercely covet those arbitrary bits of copper. Those tiny percentages of dollars – the remnants of awkward transactions – can truly add up, as anyone who has seen the movie Office Space can attest to. Sadly, I cannot promise that by the end of your time here your pennies will add up to the hundreds of thousands of dollars Peter Gibbons and his friends were able rip off their employer, but counting up that little jar of loose change on your dresser at the end of a semester is sure to yield a surprisingly large amount.\nIn the same vein, you don’t necessarily have to sacrifice immediate pleasure to save a buck. Simply adjusting little habits throughout the day can save pennies (or even quarters!) here and there that add up quickly. Instead of buying that extremely overpriced (and high-calorie) specialty drink at Starbucks, order the double shot of espresso. Same amount of caffeine, a fraction of the cost. Instead of buying bottled water everyday, buy one at the beginning of the week and fill it at your tap for an entire week. Make little changes like that and soon you’ll be an independent millionaire! Perhaps that’s an exaggeration, but you get the picture.\nIt can become addictive, saving money. Akin to the joy of a kid on Christmas morning, the simple act of counting the spare change you’ve collected over a few months and treating yourself to something special you’ve been working towards (a fancy meal with friends or a light-weight road bike, for instance) can inspire a revolution of saving. \nThis is the time to start experimenting with savings accounts, perhaps even getting familiar with small-time stock investment. If you get a refund for financial aid at the beginning of semesters, tuck a percentage away in any sort of yielding savings account for a rainy day, as those rainy days are sure to come. It’s an indescribable feeling of freedom knowing that you are secure enough in your own funds to be able to care for yourself in an emergency. And you might as well become fluent in personal finances now while your parents are still willing and able to help you out on occasion.\nFinally, take this opportunity to start building your credit. As a college-aged individual you will soon be flooded with tons of offers from credit card companies. Do not fear this. We live in an era where you must have a credit score of some kind to be taken seriously in the world, so choose one or two small-limit cards and use them sparingly, always paying your bills on time. Once you graduate, you’ll be golden. Just don’t overdo it. Try not to charge more than you can pay off each month. Covet your pennies and build your credit. Good luck and happy saving!