What do we all have in common regardless of our age or major? At some point, we will need to manage our own finances (or we already are). This can be scary for some, and confusing for others. Knowing where and how to start is critical. Regardless of where you are in life, these are simple steps to help you take control of your financial future.
Begin with a budget
If you already have a budget – great! Make sure you are reviewing it regularly and adjusting for life’s changes. If you don’t have one, now is the time to start. Even if you do not have a regular income you can budget the allowance you get from your parents, or student loan and scholarship money you receive each semester. This is especially important if you are receiving lump sum payments, and you need these funds to last the entire semester. You can use the spending plan worksheet at k-state.edu/pfc/budgeting/ to help you get started, or make an appointment with Powercat Financial. Other budgeting tools can include using an online App such as mint.com.
Check your credit report
Checking your credit report is important. A credit report is a summary of your financial reliability – your history of paying debts and other bills. The three credit bureaus are Transunion, Equifax and Experian. You can obtain a free credit report once a year from each of the three bureaus at annualcreditreport.com. We recommend requesting one every four months (for example – Transunion in January, Equifax in May, Experian in September) to identify fraudulent activity or errors, and track your credit history. Also note, the report does not include your credit score (the numerical value calculated from information in your credit file that is used by lenders and landlords to assess your “credit risk” at that time), but you can get your free credit score at creditkarma.com.
Set up an emergency fund
Pay yourself first! This sounds simple, but the easiest way to contribute to a savings account regularly is to set up an automatic transfer from your checking to your savings account. Having an emergency fund of 3 to 6 months of expenses can keep you from using credit (and paying the interest) or stressing about money in an emergency. Just make sure to only use it in an emergency and to replenish your savings afterwards.
Get out of debt
Whether you have credit cards, a car payment, or student loans, it pays to get out of debt. Paying only the minimum on your credit payments ensures you will pay the maximum amount of interest. Even paying a little extra on your payments can help you save a lot of money in interest – and this just means more money in your pocket in the long run!
Take a class
April is financial literacy month. We encourage you to explore your finances through expanding your education. SALT is a free resource available to current K-State students and alum. You can find SALT courses that explore a variety of financial topics, and they do not require a huge time commitment – usually, they can be completed in about 30 minutes. Additionally, SALT has articles, infographics, and other resources to help you become financially savvy, so sign up today at saltmoney.org. For every SALT course you complete during the month of April, you are entered to win a $250 scholarship from Powercat Financial Counseling. If you want to explore your personal finances in more depth, K-State also offers an introduction to personal financial planning class. Finally, if you ever have questions, or need some help with your financial situation, we would love to meet with you individually. Just make an appointment at k-state.edu/pfc/. Good luck and remember, now is the time to take control of your financial future!
Shari Humbard
Peer Financial Counselor I
