Are You Financially Fit For College By Wendy Owen  Thursday, February 22, 2007

To put it simply, college isn’t free. There are going to be more costs than you can count just to get started, and then once you are a student, it never seems to end! Getting your finances in order early on is the best way to begin your college experience.

Now that you know you really want to go to college, the question is, can you afford it? If you have to take out hefty loans and quit your job, the answer is probably no. If school is going to be a financial burden and you can’t obtain grants or scholarships, then you should probably wait until a better time. Getting an education is great, but not if you are so stressed about bills that you can’t even keep up your grades or make it to class. There’s nothing worse than taking out loans on a degree you may never finish.

When I graduated high school, I had absolutely no savings of my own and none of my family members had the kind of money to put me through college. I had a part time job at a grocery store that paid for my car and other necessities but nothing else. Luckily, I had my scholarship and pre-paid college to get me through the first two years. I never had to take out one loan, and because I worked that same grocery store job all through school, there was always money of my own to pay for classes.

If you think that you can afford to go to college at this point in your life, then there are still a few things you need to square away. Here is a list of things you should probably consider:

1) Checking and Savings account: Do you have one? Many students don’t have any sort of checking or savings account right out of high school. Now is the time to learn to manage your funds, no matter how meager. Many banks will offer free student checking, so shop around and find the best deals with your bank too.

2) Credit Cards—Beware!: A credit card is an excellent resource to have for a number of reasons; in case you have an emergency and need to pay for something right away, for making airline reservations, and best of all, for establishing credit. It can also be an evil demon of temptation, and makes it really easy to buy a bunch of junk you definitely don’t need. By all means, get one, but if you find yourself charging silly things, leave it at home.

3) Insurance: What kind of health and auto insurance do you have? Many times you will find that insurance agencies have great deals for students as well. See what your school offers for student health insurance, and ask if your auto insurance gives “good student” discounts.

4) What do you already owe?: If the answer is nothing, great! Let’s try to keep it that way. If you already have a car payment, and a mortgage and a massive credit card bill, make sure that your current finances can cover these debts while you go to school. Late fees for bills and services can be sneaky and frequent and will only add to a mountain of debt!

Once you know where you stand financially, you can get a little better sense of your situation and have some peace of mind. If your current credit situation is good and stable, then don’t feel bad about taking out student loans to cover the necessities. Just make sure you don’t end up spending your loan money on concert tickets or a great pair of shoes—you’ll surely regret it down the road.