If this year is typical college students here in the United States will spend almost 800 million dollars in credit card fees and fees on their bank accounts.
The typical student will have more than two over-drafts a year–that’s about 35 dollars each..
One out of three students will pay a credit card bill late; that’s an average of 35 dollars each time it happens. All told that’s 73 million dollars in late payments according to Nerd Wallet-they did the study. Parents, if you co-signed on their credit card you could be out the money and your credit score could be damaged if those overdrafts and/or late payments are reported to the credit reporting agencies.
In an attempt to avoid late fees some students like to send money directly to creditors using a third party service. Many times they do this over a mobile device. A couple of things about that: First, anytime you’re on a mobile device there could be somebody watching. Hackers could be close by monitoring your activities on sites that are not secure such as those in coffee shops, restaurants and public areas on campus. Also, a bank executive told me that some of those third party pay companies will not assume any responsibility if you or they are hacked! There’s plenty of fine print in their agreements that could be important reading. That fine print is rarely read.
For college students who may be taking a car to the campus call your insurance company make sure you have adequate coverage. Maybe you’ll save money! Students might be living in a area with lower auto insurance rates. Something else to check out; will students be working part-time? Will they be using the car for work, maybe delivering pizza or groceries? If so, insurance pros say make sure your policy covers business use..
If the coming school year is typical 70 to 80 per cent of students will find a job to make some money to help with college costs..
Here’s a tip: don’t work too much! A Georgetown University study found working 15 hours a week can actually be helpful to the student..
It can help make them better time managers because they’ll be forced get the most out of every day. In fact, many of those students even had higher grade point averages than others!.
But once a student works more than 20 hours a week that GPA falls according to a study by the Bureau of Labor Statistics..
Have a successful semester! Oh— and try to have some fun too!.