Independence is one of the joys of heading off to college - but financial independence can be an ongoing challenge as many students struggle with the responsibility of managing their own money.
Even though they're often equipped to the hilt with smartphones and iPads, few of today's students closely track their spending. They get their student loan money and a few months later are wondering where it all went. Here's a look at some common money mistakes college students face and how to address them.
Budgeting. It's a mistake to think of a budget in terms of deprivation or what can't be spent. Learning to live within certain limits can help students gain the discipline to save for their goals. Free online budgeting tools are offered on various sites, such as www.moneystrands.com and www.mint.com. Both offer smartphone apps.
Debt. It's common for students, who often don't begin repaying student loans until months after graduation, to put accumulating debt way in the back of their minds, said Casey Weade, a financial planner in Fort Wayne, Ind. "They don't feel like that's a real number to them," he said.
But an equally important concern is college students' use of credit cards. Recent regulatory changes now require card applicants under 21 to prove they can pay the bill, or have a cosigner to open an account, but most parents want their kids to have some card available, at least for emergencies.
The California-based Institute for College Access & Success estimates the average student loan debt for graduating seniors was around $20,000 at public universities, nearly $28,000 at private non-profit schools, and around $33,000 at private for-profit colleges.
Choosing a bank. Do some research. If a campus is dominated by one bank, students shouldn't assume that it offers the best terms. Many also will be bombarded by banks wanting their business and for them to open a credit account. Students should scrutinize ATM fees and online banking options. It's also wise to look into credit unions, many which offer lower fees.