Get financial lessons before heading to college

• Advocate staff report
• Published: Jul 30, 2008 - Page: 1E - UPDATED: 12:05 a.m.

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Warning to recent high school graduates: A study has shown that more students quit college because of credit card debt than academic failure.

Jeanette Tucker, LSU AgCenter family economist, recommends students and their parents read “40 Money Management Tips Every College Freshman Should Know.” (See Web site below.)

She particularly highlights the following:

• Talk to your parents to learn what they expect from you financially and what you can expect from them.
• Organize all important financial files — receipts, warranties, financial aid and college documents, checking account statements and bill payments — into a file box that locks and keep the box in a safe space.
• Keep applying for financial aid. Scholarships, grants and awards aren’t just for incoming freshmen. Meet with an adviser or financial aid officer as well as visit Web sites.

Recommended sites include:

• College Board at http://www.collegeboard.com.
• Fast Web, a financial aid search engine at http://www.fastweb.com.
• National Association of Student Financial Aid Administrators at http://www.finaid.org.
• Sallie Mae scholarship service at http://www.salliemae.com.
• U.S. Department of Education at http://www.ed.gov/about/offices/list/ope.

“Don’t forget to pay attention to deadlines,” Tucker warned.

“That’s a common mistake students make when applying for scholarships,” she said.

Some of her other tips:

• Aid does not continue automatically from year to year. File a free application for federal student aid each year as soon as possible after Jan. 1. File online at http://www.fafsa.ed.gov.
• “Pay yourself first” by putting money in your savings account before you spend it on other things.
• Prepare, and follow, a budget.

“A budget is one of the best tools you can employ when keeping track of your money,” Tucker said. She suggests using a budget, or spending plan, as a financial map. It tells you how much is coming in each month, where you have to spend it and where you may be able to save.

About those credit cards. If one is necessary, keep only one major card. Shop around for a card with no annual fee, and be sure to find the lowest interest rate. Don’t charge anything that you can’t pay for at the time, unless it’s an emergency. After the transaction, subtract the credit purchase from your checking account so you’ll have enough money to pay the bill.