Far too many Americans have fallen victim to credit card debt, but it is my goal to help educate and inform you about the dangers of debt as well as how to avoid it by making smart choices.

Here are five helpful tips that will keep you from falling into the credit trap:

1. Have a budget, and expect that it will require frequent adjustments.
   With a budget, you will be able to live within your means and avoid unnecessary debt. If you want to buy those designer jeans at the mall that cost a little more than you might otherwise spend, you’ll know where you can cut back on other spending, ask for more hours at your after school or summer job, or dip into your savings.

2. Build your savings as a safety net for your budget.
   Because many Americans live paycheck to paycheck, many deal with emergency expenses in the worst way possible: by going deeper into debt. When you go off to college, you should have a savings account for when you blow a tire on your car or someone steals your winter coat at a party. You should never have to go into credit card debt to pay for those expenses.

3. Use cash as much as possible.
   People who use cash spend less. The best example is that when McDonald’s allowed customers to use credit cards rather than cash, the average sale went from $4.75 to $7. Use cash for anything less than $20.

4. Adjust your spending when your circumstances change.
   With the dramatic increase in gas prices, are people using the same amount of gas and doing exactly the same things as before? Maybe with gas prices so high, you need to cut back on clothing or groceries that you really don’t need. Maybe with movie prices so high, it’s time to see fewer first-run movies.

5. Pay attention to what you’re spending your money on.
   Dave Ramsey, in his New York Times bestseller, “The Total Money Makeover,” estimates that 90 percent of people in our culture buy things they can’t afford. You need to understand your needs versus your wants, even at this time in your life. The worst thing you can do is to go into debt to have things you want but can’t afford.

Judge Ninfo is a retired Bankruptcy Judge and the founder of the CARE Program, a National financial literacy program of the bankruptcy community in high schools and colleges in all 50 states.

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If you’re a student who just landed an internship or part-time job, it’s time to think smart about money. Those paychecks will begin rolling in, and having a plan to manage your money is essential.

College is certainly the best time to begin healthy financial habits. For example, creating a budget and living within your means can have an impact on years to come.

“There are so many important decisions that college students have to make in support of the ultimate goal to become financially independent,” according to the U.S. Department of Education. “And, as tuition, books, housing and more only rise, the dream of financial independence has only become more difficult, and stressful.”

Start off on the right foot with spending and saving habits that will facilitate financial independence down the road.

Create a Financial Plan

Creating a financial plan during your college years can keep your degree debt low. Let’s face it, financial aid doesn’t even scratch the surface when it comes to your degree debt after you graduate.

Items to consider when budgeting your upcoming semesters are . . .

• Estimated tuition cost
• Fees for special classes
• Room and board (on or off campus)
• Books and supplies
• Creature comforts

You can get a good idea of each item’s cost by talking with your financial aid office. The better you budget now, the less money you need to borrow, and the bigger the impact on your loan debt later.

“Financial responsibility is one of the many skills students need if they are to be successful in college and life,” says Theresa Hitchcock, Director of Advising and Resource Center

University of Southern Indiana.

Make Budget Adjustments

You are new to financial planning, and you will certainly need to make adjustments to your budget as you go. However, it is important you stick to the budget you outlined.

Your college budget is merely a learning opportunity. The first few semesters of budgeting all those college needs will be challenging. But always remember that you can make changes.

Just like everyone else in or out of college, you will face some financial firsts that will be cause for adjusting your budget. Seek advice from parents or financial aid advisors, since they have all made budget adjustments multiple times in life.

Learn to Balance Your Budget

Balancing your budget is the most difficult part of learning how to be financially independent. This is even more challenging for those in college.

“College is also synonymous with young people assuming a greater responsibility for managing their own money – away from the reliable security of mom and dad’s wallet,” according to U.S. News.

You will need to go with the flow and get crafty when it comes to spending habits. And you will be balancing your budget to fit your internship or part-time job as well.

However, when it comes to saving a sliver of those hard-earned paychecks, college students have a few advantages for spending less.

• Student discounts. You can find a variety of stores on and off campus that offer student discounts. You can save up to 20 percent in some cases just by flashing your student ID.
• Keep textbook cost low. The digital era has created several ways for you to get buy cheaper textbooks, or in some cases, get them for free. Check Amazon for discounts and ebooks. You can even make copies as you go using the textbook on file at your university library. This could save you hundreds every year.
• Make saving mobile. One way to save more is to not even see the money. You can set up an automatic deposit from your internship or part-time paycheck to your savings account.

Saving Money Can Be Habitual

If you set up a clear financial plan with a semester budget, you are on the right track to financial independence. And you may even find saving to be habitual.

After all, who doesn’t like seeing more digits in their checking or savings account?

Making a habit of saving can lower your school debt after graduation.

Or you may want to put the paychecks from your internship or part-time job toward a study abroad program to further your academic growth. And if you are studying abroad in the U.S., you will find financial independence to be liberating so far from home.

Financial independence certainly begins in college. You’re finally staking claim to your very own personal and professional growth in life.

Your decision to take on an internship or part-time job is a good indicator of future success. But make sure you spend wisely.

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