STUDENT: TEEN & COLLEGE AGE
Learn to manage money and prepare for the cost of higher education
You may still rely on financial help from your parents or other family members, but it’s not too early to start cultivating sound money-management habits. Many financially sound adults accomplished their goals through careful financial planning that began when they were students.
How can you start on the path to sound money management?
Complimentary Checking – A checking account just for you. No monthly fee, no minimum balance required, ATM/Debit Card, online banking and more. $100 minimum to open this account.
Here are some sources to help you and your parents plan how you will finance a higher education:
- College Savings Plans – Central Bank offers several options to help you fund the cost of a higher
education. It’s OK to start small, but start now with a college savings plan that both you and your
parents can contribute to:
US Government EE Savings Bonds – EE Bonds are reliable, low-risk government-backed savings products that you can use toward financing education and other special events. These are available through Central Bank. These are purchased at half of face value and can earn interested for up to 30 years.
US Government I Savings Bonds – I Bonds are also low-risk government-backed products that you can use to help finance your education. These are available through Central Bank. The customer pays face value for these and can earn interest for up to 20 years.
Parents may purchase bonds in their name and use those bonds for their children’s education. The perk; parents won’t have to pay tax when those bonds are cashed in if they can show the money was used for college expenses!
- Federal Financial Aid for Higher Education (FAFSA) – All college applicants and their parents or
guardians should become familiar with the most recent FAFSA guidelines and deadlines which can
be found at http://www.fafsa.ed.gov/. Applications for federal student aid may also be available
from your high school counselors, public library or college financial aid office.
When you are 18, you may open a savings account on your own at any bank location. Younger students may open checking accounts with the co-signature of a parent, and you need to do this together inside the bank.
TIPS FOR EFFECTIVE FINANCIAL MANAGEMENT
- Set a savings goal and keep track of your progress.
- If you have a job, don’t spend everything you make.
- Record ALL your transactions daily for your checking and savings accounts, whether they are made with debit or credit cards or paper checks and deposit slips.
- Know your account details such as overdraft charges, interest rates, withdrawal restrictions, minimum balances, etc.
DOUBLING YOUR MONEY
When it comes to finances, it’s usually safe to say that the longer you invest your money, the more you’ll have. You can figure out how long it will take to double your money with the “Rule of 72,” by dividing your interest rate into 72.EXAMPLE: Savings interest rate = 3%, 72 ÷ 3 = 24, Money in a savings account earning 3% interest takes 24 years to double.
For help determining the best accounts and products for sound and productive money management during
your Student Lifestage, please contact us at 731-925-9046 or firstname.lastname@example.org.