College Prep: 2022

Part II

By Tonya Miller

FINANCIAL ADVICE FOR STUDENTS

Leaving home for the first time to go to college is a huge milestone that comes with new responsibilities, such as managing your own money.

College is a good time to learn how to budget, especially if you’re living in the dorms and using the meal plan, which takes care of two of your biggest expenses.

START BUILDING CREDIT

Your credit score may be even more important than your GPA once you graduate. It’s a number that tells lenders how likely you are to pay back a loan. The higher the number, the better. Everyone from banks to landlords to potential employers will pull your credit, so it’s important you start building up a good credit score now. Get a card or have your parents add you as an authorized user. Avoid carrying debt and pay the card off in full every month.

HAVE A BUDGET

Create a spending (and saving!) plan that meets your needs and track how you’re doing every month. There are tons of apps and websites out there that help you do this and, once you get the hang of it, it becomes a great habit that will serve you well in the real world. If you learn this while your life is still relatively simple, it’s easier to manage when things get complicated by homes, investments, marriage and children.

 SET ASIDE A RAINY DAY FUND

In that budget, make sure you plan for emergencies. If you have a car, plan to set aside money for repairs and maintenance. Have a pet? Plan for illnesses, prescriptions and veterinary visits. There’s no set number you need to save, but you should have some set aside in case the worst happens. Just knowing it’s there will relieve some stress.

LEARN HOW TO INVEST

If you save up enough, you can learn how to invest it and let it earn money for you. Look at tax-free accounts, such as IRAs. Avoid using alternative investments and financial adviser apps and stick with the tried-and-true. You don’t have much of a nest egg and it’s important to keep it safe. Notice how the markets and fees affect your investments and remember that this is a good time to try new things, cautiously.

APPLYING FOR SCHOLARSHIPS

Somewhere in the big pile of paperwork that you filled out when you started school was a FAFSA, a Free Application for Federal Student Aid form.

It’s the piece of paper that qualifies you for loans, grants and even a few scholarships. But there’s a lot more out there that the FAFSA might miss. And it’s important because scholarships are a gift that doesn’t need to be repaid later, unlike loans. Schools, employers, churches, companies, nonprofits and more all offer different kinds of scholarships for all kinds of reasons.

TYPES OF SCHOLARSHIPS

Some scholarships are merit-based, meaning that you earn them by meeting or exceeding standards set by the group or person giving the scholarship. They can be based on academic or personal achievement, or a combination thereof. You might get one for a talent, a sport or anything else you do well at.

Scholarships based on financial need address the gap left between what you and your family can pay and what schools cost. No matter your grades, if you and your guardians’ income meets a certain threshold, you can qualify for these scholarships.

A third group of scholarships targets groups of people, such as military families, people from a certain religion, women, graduate students and more. If you can think of a way to group people, there’s probably a scholarship for it. No matter your income or grades, if you fit into that group, you are eligible for the scholarship.

WHAT SCHOLARSHIPS MIGHT COVER

That depends on the award and the people giving it. Some scholarships only cover room and board in certain dorms, for instance, or may only apply during one semester. Other gifts span the whole time you’re in school, but may only cover tuition, not fees or room and board. All of them are worth your time and energy, because that’s money you won’t have to pay back later.

FINDING SCHOLARSHIPS

Contact your school’s financial aid office and ask about scholarships you can apply for. They probably have a comprehensive list. You can also check at the public library, your high school counselor, federal agencies, your parents’ employers, with your town’s government or online. Be careful; some scholarship sites look real but are just ways to get your information for nefarious purposes.

RESOLVING ROOMIE TROUBLES

Your first time away from home may mean the first time you have to deal with living with someone who’s not a family member.

Roommates are great in that they cut down on your out-of-pocket costs, especially if you’re renting an apartment, but they take some getting used to. Here are some tips for living your best life with a roommate.

SETTING BOUNDARIES

You can head off all sorts of roommate troubles by setting clear boundaries in common trouble spots. Take, for instance, cleaning your abode. You and your roommate probably have different ideas of clean, so it’s important to get that out there before it becomes a problem. Divvy up responsibilities and set a clear schedule of who is responsible for what when.

Another potential pothole is having company. Establish rules about having friends over, especially significant others. Some questions to ask include the following:

• What is the time limit for guests?
• Can significant others spend the night?
• How can you tell the other person that you would appreciate some privacy?
• Should you set a lights-out time?

Once you’ve hashed out some rules, write them down and sign them. It may seem juvenile, but it will help keep you both accountable. This agreement can serve as a starting point if further discussions are needed.

HOW TO RESOLVE PROBLEMS

No matter how careful you are, college is a stressful time and there’s bound to be conflicts. Working through them builds valuable life skills and can strengthen friendships, if you do it the right way. If you have a problem with your roommate, set up a time to talk in person so that they don’t feel ambushed and there’s less of a chance of them misconstruing what you say in a text or on social media.

Once you have their attention, focus on one problem at a time and be ready with suggestions of how to solve the problem. Talk about the behavior, not the person. Instead of: “It’s rude of you to use all of the hot water in the morning in your three-hour shower,” try “I don’t have any hot water for my morning shower. Can you try showering at a different time or setting a timer to save water?” Your roommate may not even realize how their behavior affects you.

Lastly, remember to listen to their side of the story. It’s probably not that they’re deliberately out to annoy you with cold showers. They may have reasons for their behavior that you haven’t considered. Try to remember how you would want to be treated if the roles were reversed.