Posted by: sailingspirit | April 11, 2011

Saving You Strife: College Tips pt.7

#7  Credit Cards, Handling Money, and Student Loans

Credit cards will be pushed on your students every single day from the moment they step on campus.  No joke.  They’ll get dozens in the mail every month, most of which can be activated by simply using them.  Applications and approvals?  Nah, that’s old school.  The banks prey on students like pihranas because they know it’s guaranteed profit; students pay huge amounts in interest and fees without even knowing it.  They need to know it takes some 30 years to pay it off, and how much they’ll actually be paying.  Simply telling them they have to pay it back isn’t enough.  And the kinds of things students buy are usually expensive, so the balance shoots up very quickly.  Even just pizza–a month of pie delivery will cost $553.50!  Student Loans are pushed on them with the same slippery smile, but are just as bad as the Mortgage Crisis.  I highly recommend you avoid this option if at all possible, and if not possible, spread out the education timeline so they can be paid off as you go.  A lifetime burden is not worth saving a year or two on your timeline.  And it really causes a major burden to have to start out life with.  You will NEVER get out from under them; you can’t even claim them in a bankruptcy!  Loans in general are not advisable.  Cash is best.  Admittedly, I have no patience for budgeting and balancing accounts and am only now–in my 30’s–learning how to prioritize needs and desires, wait patiently while saving, know that if I don’t buy such-and-such today I will find something else I like another day because they will always make more stuff, and honor God with my tithe.  Having a heart truly renewed by God helps a lot.

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