ReadingAThemostimportantsubjectyoustudy—intheclassroomorintheschoolofhardknocks—couldbepersonalfinance.Butifyourcourseloadistooheavytofitthatin—orif,likemostcolleges,yourschooldoesn’tofferit—allowustogetyoustarted.Yourfirstlessonistosetupabudgetandsticktoit.Thisisthebestwaytotakeresponsibilityforyourmoneyandavoidfallingintodebt,whichcanbeanoosearoundyourneckforyearstocome.23ReadingA“Surprisingly,wefindthatmanystudentshavenotthoughtmuchaboutthesethings,”saidBrendanCoughlin,headofeducationfinanceatCitizensFinancial.“Managingyourfinancials,beingonyourownforthefirsttimeisnewtomoststudents.”Nomatterwhatstageoflifeyou’reat,creatingabudgetandstickingtoitcanbetedious,butCoughlinandotherconsumeradvisersagreethatit’sthekeytoyourfinancialsuccess.45ReadingAMoneyIn>MoneyOutAbudgetisaroadmap(ormaybearoadapp)tomakesureyoudon’tspendmorethanyouhave.Inshort,ithelpsyoutolivewithinyourmeans.“Itstartswithunderstandingyourincomeandunderstandingyourexpenses,”accordingtoCoughlin,“[and]havingadisciplineaboutspendingondiscretionaryitems.”BudgetsiteslikeMandothertoolswillhelpyoudeterminehowmuchyoucanspendeachmonthandsemesteronessentials—suchasfood,housing,booksandotherschoolsupplies—andforfun—usuallylistedinabudgetasenterainmentorrecreation.67ReadingAThen,justmakesureyouspendlessthanyou'rebringinginfromallsources:work,parents,wherever.Itcomesdowntogettingintoaroutine.Compareittoothertaskslikegoingtothegymorlosingweight.Yes,it'seasiersaidthandone,butonceitbecomessecondnature,itcanpaylifelongdividends.(Andifbeerandotherrecreationalbeveragesrepresentasignificantlineiteminyourmonthlybudget,itmaybetimetorethinkyourfinancialpriorities.)8ReadingACreditCardsAreImportant,TooEarlyoninyourPersonalFinance101course,you’llneedtolearnaboutcreditcards.Somepersonalfinanceadvisorsfocusonthenegativesofplastic,butlet’sstartwiththepositives.Usingacreditcardmeansyoudon’thavetocarryaroundalotofcash,cangiveyoualegupontrackingyourspending,andcanhelpyouestablishagoodcredithistoryifyoupayyourbillontimeeachmonth.And,ifyoupayitoffinfulleachtimeitarrives,theinterestwon’tbecometooonerous.ButitcanbeabitofCatch-22situationforcollegestudents:You’llneedacreditcardtoestablishyourcredithistory,butifyoudon’thaveacredithistory,youmaynotbeabletogetacreditcardwithoutaco-signer,usuallyaparent.9ReadingA“Wefindthatparentsareveryengagedintheirkids’financiallivesandhelpingthemmanagetheirmoney,”saidCoughlin.“Parentscanhelpthembuildupacredithistoryquickerthantheycandosoontheirown.”However,youcangetintodeeptroubleifyoustarttouseplastictobuythingsyoucan’tafford.Ifyoumissthepaymentdeadlinealtogether,whetherit’sbyonedayoronemonth,you’llbehitwithafeerangingusuallyfrom$24to$35.Andlatepaymentsoftentriggerhigherinterestrates.Ifyoucan’tmakeapayment,atleastcallthecompanybeforetheduedate;thecardcompanymightbewillingtowaivethefeeorreduceit.1011ReadingAShoppingtheUn-saleRackButifyougetintothehabitofjustmakingtheminimumpaymentseachmonth,orcarryingasignificantbalance,thehighannualpercentageratechargedbycardcompaniescanmakeeverythingyoubuymuchmoreexpensive.It’slikegoingtothestoreandshoppingthe“un-salerack”—whereeverythingyoubuycosts25percentmorethanthelistprice.ArecentreportfromBsaysanaveragecardholderwitha$1,000balancewhomakesonlytheirminimumpaymentswillneed73monthstopayoffthatbalance,andthatthe$1,000worthofmerchandisesheboughtwillendupcosting$1,840.1213ReadingACoughlinalsowarnsstudentstowatchoutforcreditcardscamsandavoidcardswithunreasonablyhighfeesandinterestrates.14ReadingAOtherAdviceforCollegeStudentsOpenacheckingaccountandobtainadebit(notcredit)card,butmakesurethereisatleastonebranchoraffiliatedATMnearbysothatyoudon’thavetopayfeestowithdrawyourownmoney.Ifthebankyouandyourfamilyusedbackathomedoesn’thaveapresenceonornearcampus,switchtoabankthatdoes.LookfordiscountprogramsattachedtoyourstudentID.Manylocalbusinessesgive10percentto20percentdiscountstostudents.Getapart-timejob.Youmayfindmorejobopeningsatthestartofeachsemester.Startsavingforemergenciesandforbigpurchasesyoumaywanttomakedowntheroad.Buyusedbooksonlineorfromotherstudentsatyourschool.Youcansaveasmuchas50percent.15ReadingBWhenyou’reinschool,learningthestatecapitals,themultiplicationtables,andtheperiodictableisimportantbusiness.Icanstillseemythird-gradeteacherwiththoseflashcards,runningthroughthesixtables.Youjusthadtoknowthosetables,remember?Hadyounotlearnedthemandallthatothermust-haveinformation,youprobablywouldhaveendeduprepeatingagrade.WhateverHappenedtoPersonalFinance101?1Thingsweren’ttoomuchdifferentincollege,either.Youcouldn’tmovetothenextcollegehistoryleveluntilyouwereabletospeakwithauthorityaboutthepoliticalsituationofearly20thcenturyRussiaoradvanceintheEnglishprogramwithoutbeingabletoanalyseatleastthreeShakespeareansonnets.ButIbetmoney,personalfinance,andfinancialplanningweren’tevenpartofthecurriculum.2ReadingBArecentsurveyofhighschoolseniorsshowedthatmorethanhalfofthemthoughtU.S.SavingsBondshadabetterpotentialforreturnsovertimethanthestockmarket.Morethanaquarteroftheseniorssaidyou’dgetthemostbackonyourmoneybyputtingitinasavingsaccount.Almostone-thirdofthosesurveyedthoughtthatsocialsecurityiswhatyougetfromyourformeremployerwhenyouretire,andhalfofthemthoughtthatincomefrominterestonasavingsaccountwouldn’tbetaxed.3ReadingBThislackofknowledge,expertssay,shouldnotbeasurprise.Kidscan’tknowwhatthey’veneverbeentaught.Ifnoonetellsyouthatpersonalfinanceisimportant,howareyousupposedtoknowit?Granted,thesubjectofmoneywillariseifyouhappentotakeaneconomicsclass,butitismorelikelytobeinrelationtotheGreatDepressionthantoyourbankaccountorretirementfund.Thetheoriesofsimpleandcompoundinterestsaretaughtinsomeschools,buttheyarerarelyappliedtothestudents’savingsaccounts.Theseconceptsaretaughtintheabstract,sokidshavelittleincentivetorememberthemoncetheclassends.4ReadingBButAmerica’sschoolscan’tbeartheblameforfinancialignoranceallbythemselves.Expertssaythatkidsaren’tlearningresponsiblepersonalfinancefromtheirparentseither.Kidsoftenpickupbadmoneyhabitsathomeandcontinueinthosehabitswhenthey’reontheirown.Beforeyougettoodepressedaboutthesadstateoffinancialeducation,though,itlooksasthoughthingsmightbestartingtochange.Althoughitwilltakesometimetoknowforsure,thereisencouragingnewsconcerningattitudestowardteachingandlearningaboutfinance.5ReadingB6TheJumpStartCoalitionforPersonalFinancialLiteracy,agroupadvocatingthatfinancialeducationbetaughtinschools,wasfoundedin1997.BasedinWashington,D.C.,it’smadeupof