Comments on: Money Advice for the College Student – Part III http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/ Money issues for college students and 20-somethings, without being boring. Tue, 24 Apr 2012 13:02:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Annie @ Credit Dispute http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-76486 Annie @ Credit Dispute Tue, 04 Aug 2009 08:05:06 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-76486 I was a working student when I was in college. I entered as a student assistant assigned in the registrars office of our school. The school pays for all my tuition fees and they also give me an allowance every much. Very hard to work while studying but its all worth it. I was a working student when I was in college. I entered as a student assistant assigned in the registrars office of our school. The school pays for all my tuition fees and they also give me an allowance every much.

Very hard to work while studying but its all worth it.

]]> By: Ann http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-76024 Ann Thu, 23 Jul 2009 02:55:53 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-76024 College can drain your wallet fast. Before, when I was entering my my senior year of college, in there I found out juts how hard it is to find some extra cash, either for entertainment or other reasons. College can drain your wallet fast. Before, when I was entering my my senior year of college, in there I found out juts how hard it is to find some extra cash, either for entertainment or other reasons.

]]> By: STFY http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-75255 STFY Fri, 03 Jul 2009 06:27:22 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-75255 As a college student it was really hard to save some money from my monthly allowance. And I'm still thinking twice if I'll get a credit card. I'm afraid i might not be able to pay my bills. As a college student it was really hard to save some money from my monthly allowance. And I’m still thinking twice if I’ll get a credit card. I’m afraid i might not be able to pay my bills.

]]> By: Stephanie http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-71405 Stephanie Tue, 24 Feb 2009 20:53:25 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-71405 @Katarzyna: it all depends on your time frame. If you want to be able to use that money within the next 10 year, then your money is probably best where it is - a savings account. If you want it to grow over the next 10 years (or longer), you should look into investing. If that's the case, I can recommend a <a href="http://poorerthanyou.com/2009/02/04/review-the-bogleheads-guide-to-investing/" rel="nofollow">book to get you started</a>. @Katarzyna: it all depends on your time frame. If you want to be able to use that money within the next 10 year, then your money is probably best where it is – a savings account. If you want it to grow over the next 10 years (or longer), you should look into investing. If that’s the case, I can recommend a book to get you started.

]]> By: Katarzyna http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-71404 Katarzyna Tue, 24 Feb 2009 14:53:50 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-71404 Hello, Since I discovered this site, I thank God that I didn't blow my $1000 on crap. I don't know what to do with it. Someone borrowed $500 from me so now $500 is siting on my savings acct in a credit union. I don't know what will $500 will get if I buy stocks? I don;t know what to do. It'd be nice to help ;) Hello,

Since I discovered this site, I thank God that I didn’t blow my $1000 on crap. I don’t know what to do with it. Someone borrowed $500 from me so now $500 is siting on my savings acct in a credit union. I don’t know what will $500 will get if I buy stocks? I don;t know what to do.

It’d be nice to help ;)

]]> By: Stephanie http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-51539 Stephanie Wed, 21 May 2008 14:43:37 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-51539 @Nick - It's true that credit cards aren't for everyone. But the reason I suggest them is that they ARE a good way to establish a credit history. In fact, I saw this happen just the other day: a friend of mine is very lucky, he's getting through college and now grad school with absolutely no loans! This also means he has <i>absolutely no credit history</a>. Banks aren't willing to touch him with a ten foot pole - we found this out when he tried to get a credit card (to establish a credit history!). He was denied for having <i>no credit history</i>. Luckily, the second time around, he was approved for a student card. Of course, it DEFINITELY matters that he is the type of person who will be very careful with his card, and never spend what he can't pay off immediately. Dave Ramsey has some great philosophies, and I know he disagrees with me on this topic. But if you don't have any other loans to establish a credit history, you could end up screwed. @Nick – It’s true that credit cards aren’t for everyone. But the reason I suggest them is that they ARE a good way to establish a credit history. In fact, I saw this happen just the other day: a friend of mine is very lucky, he’s getting through college and now grad school with absolutely no loans! This also means he has absolutely no credit history. Banks aren’t willing to touch him with a ten foot pole – we found this out when he tried to get a credit card (to establish a credit history!). He was denied for having no credit history.

Luckily, the second time around, he was approved for a student card. Of course, it DEFINITELY matters that he is the type of person who will be very careful with his card, and never spend what he can’t pay off immediately.

Dave Ramsey has some great philosophies, and I know he disagrees with me on this topic. But if you don’t have any other loans to establish a credit history, you could end up screwed.

]]> By: Nick http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-51493 Nick Wed, 21 May 2008 05:56:27 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-51493 I don't think the whole using credit cards thing is a good idea. I also don't think there is such thing as "good debt"; all debt is ultimately just a way for banks to make money off of you! I ended up with so many credit cards; one was for my parents to use and pay, one was for emergencies, one was for me to buy what I needed and then my parents would pay off the balance, one was a great introductory rate, blah, blah, in the end I filed for Ch7 bankruptcy. If you get a credit card, you are doing business with a multi-billion dollar industry. Do you really think you'll get ahead? Even after a bankruptcy, probably because of my student loans, I still have a credit score that's 700+. There goes the "you need credit cards to build your credit score" theory. Check out Dave Ramsey's site, he has some good words. I don’t think the whole using credit cards thing is a good idea. I also don’t think there is such thing as “good debt”; all debt is ultimately just a way for banks to make money off of you! I ended up with so many credit cards; one was for my parents to use and pay, one was for emergencies, one was for me to buy what I needed and then my parents would pay off the balance, one was a great introductory rate, blah, blah, in the end I filed for Ch7 bankruptcy.

If you get a credit card, you are doing business with a multi-billion dollar industry. Do you really think you’ll get ahead? Even after a bankruptcy, probably because of my student loans, I still have a credit score that’s 700+. There goes the “you need credit cards to build your credit score” theory.

Check out Dave Ramsey’s site, he has some good words.

]]> By: Stephanie http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22468 Stephanie Thu, 08 Nov 2007 18:13:05 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22468 <b>Fred</b>: The compounding I wrote about was compounded annually, not daily. 10% compounded daily would be a very high risk investment, indeed! It's true, inflation is usually around 2-4%. And while that does eat into a 10% investment, it doesn't cancel it out or mean you shouldn't do it. Also, this doesn't have a whole lot to do with banks, but as far as them "offing your account," they won't, so long as the account is FDIC insured. There are some accounts that aren't FDIC insured (Money Market Accounts, for example), where this could happen. That's why you should always be aware of whether your bank account have FDIC insurance or not. But in general, what I'm talking about with the 10% interest rate is stock investments. I know it's something I haven't covered in detail - if you're interested in the subject, I highly suggest this book: The Bogleheads' Guide to Investing Fred: The compounding I wrote about was compounded annually, not daily. 10% compounded daily would be a very high risk investment, indeed!

It’s true, inflation is usually around 2-4%. And while that does eat into a 10% investment, it doesn’t cancel it out or mean you shouldn’t do it.

Also, this doesn’t have a whole lot to do with banks, but as far as them “offing your account,” they won’t, so long as the account is FDIC insured. There are some accounts that aren’t FDIC insured (Money Market Accounts, for example), where this could happen. That’s why you should always be aware of whether your bank account have FDIC insurance or not.

But in general, what I’m talking about with the 10% interest rate is stock investments. I know it’s something I haven’t covered in detail – if you’re interested in the subject, I highly suggest this book: The Bogleheads’ Guide to Investing

]]> By: Fred http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22392 Fred Thu, 08 Nov 2007 03:27:21 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22392 of course The inflation rate in any nation is usually around 2-5% so a 10% interest rate would normally be a good thing. But of course the banks KNOW this which is why they make the account HIGH RISK meaning if the bank starts going south and having to pay out your account gets offed first. of course The inflation rate in any nation is usually around 2-5% so a 10% interest rate would normally be a good thing. But of course the banks KNOW this which is why they make the account HIGH RISK meaning if the bank starts going south and having to pay out your account gets offed first.

]]> By: Fred http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22391 Fred Thu, 08 Nov 2007 03:25:01 +0000 http://poorerthanyou.com/2007/02/14/money-advice-for-the-college-student-part-iii/#comment-22391 This is interesting, but you leave out the most important thing about investing money into a HIGH RISK account. First off it is a HIGH RISK account if you want 10% interest compounded daily (you don't need to compound your account any more often than that). Second - in order to come out on top in the end your interest needs to beat the inflation rate. If inflation is growing at 12% while you have a 10% interest account then you are losing money by about 2% every year off of the value of the money when you first put it in. If it were to continue like that then it's like putting $1000 into the bank and it becoming $500 instantaneously. This is interesting, but you leave out the most important thing about investing money into a HIGH RISK account. First off it is a HIGH RISK account if you want 10% interest compounded daily (you don’t need to compound your account any more often than that). Second – in order to come out on top in the end your interest needs to beat the inflation rate. If inflation is growing at 12% while you have a 10% interest account then you are losing money by about 2% every year off of the value of the money when you first put it in. If it were to continue like that then it’s like putting $1000 into the bank and it becoming $500 instantaneously.

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