{"138791":{"#nid":"138791","#data":{"type":"news","title":"Money Management 101","body":[{"value":"\u003Cp\u003EStarting college is full of new experiences \u2013 from academics to sharing a dorm room. For some students, one of the most unfamiliar and overwhelming experiences is learning how to successfully manage their own finances while in college. According to a recent national Chronicle.com survey, about one-quarter of dependent undergraduates have used credit cards to pay tuition. The same study also reveals that approximately only half of high school seniors knew that card holders accrue finance charges if they only pay the minimum balance. From managing a bank account to paying on a credit card, students usually have a lot to learn to sharpen their financial know-how.\u003C\/p\u003E\u003Cp\u003ESince it has been some time since I first opened my bank account and learned the perils of credit cards, I decided to consult with our resident Tech financial \u201cexperts\u201d regarding helpful, practical advice to share with today\u2019s Georgia Tech families. The following information was contributed by Jim Pierce, director of Treasury Services; Jennifer Mullins, associate director of the Office of Scholarships and Financial Aid; and Carol Payne, Bursar of Georgia Tech.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003ELearn how to budget\u003C\/strong\u003E \u2013 While this skill may come easily to some, it is not innate and needs to be taught and practiced. Parents and students should work together to outline all the foreseeable expenses they will incur for the semester such as housing\/rent, meals, books, tuition, fees, and other planned expenses. The BuzzCard\u0026nbsp;\u003Ca href=\u0022http:\/\/www.buzzcard.gatech.edu\/tools-and-resources\/deposit-estimator\u0022\u003EDeposit Estimator\u003C\/a\u003E is a great tool to help parents and students budget for expenses including the Georgia Tech Dining Meal Plan. Visit the \u003Ca href=\u0022http:\/\/www.buzzcard.gatech.edu\/\u0022\u003EBuzzCard website\u003C\/a\u003E for more information on managing a BuzzCard account. Parents and students should also visit the \u003Ca href=\u0022http:\/\/www.finaid.gatech.edu\/costs\/budgets\/index1213.php\u0022\u003ECost of Attendance (2012-2013)\u003C\/a\u003E webpage located on the \u003Ca href=\u0022http:\/\/www.finaid.gatech.edu\/\u0022\u003EOffice of Scholarships and Financial Aid website\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003EStudents should learn to plan for out of pocket expenses such as gas, convenience items, and other miscellaneous expenses. These can add up quickly and can cause even the best planned bank accounts to go into a deficit. Students who keep a log on how they spend their money are usually quite successful in budgeting for their expenses. For instance, if they realize that they are spending $100 a month on bottled water, they tend to make different choices in the future. While learning to budget may be daunting at first, it can also be very empowering.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003ELearn the basics about managing a bank account\u003C\/strong\u003E - Students who have never had to manage their own money especially need to learn the basics of how money is deposited and what happens when it is withdrawn whether via a check, debit card or automatic withdrawal. There are numerous national bank branches located within the Tech vicinity with convenient ATMs on campus (e.g. Student Center). If possible, students should consider opening an account over the summer with one of these national banks in their hometown so that the transition to banking while at Tech is as smooth as possible. During the summer months, it is also advised that students practice writing checks, using ATM cards, tracking their account balance between statements, as well as balancing their check book monthly against a bank statement. Don\u2019t forget \u2013 talk to your student about what happens when they overdraw their account. Students don\u2019t always understand the snowball effect that one bounced check can have on their account!\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EBe aware of common pitfalls\u003C\/strong\u003E\u003C\/p\u003E\u003Cul\u003E\u003Cli\u003E\u003Cstrong\u003ECredit Cards\u003C\/strong\u003E \u2013 while considered a necessary evil to some, using a credit wisely during college is a great way to establish credit. Students need to understand interest rates, minimum payments, and how charges and interest accrue. One rule to follow is to never put more on a credit card than what is in their bank account.\u003C\/li\u003E\u003Cli\u003E\u003Cstrong\u003ESpring semester charges\u003C\/strong\u003E \u2013 these tend to sneak up on students after they return from winter break. Remember that no invoices are mailed to either the parent or the student. Instead an invoice is available online so that a student can see all the charges that have accumulated via registration, housing assignments, meal plans, et cetera. Charges are usually due during the first few weeks of January. Students can elect to have their parents pay their bills online via the \u003Ca href=\u0022http:\/\/www.bursar.gatech.edu\/billpayment_parents_instr.php\u0022\u003EParent Payment portal\u003C\/a\u003E.\u0026nbsp;\u003C\/li\u003E\u003Cli\u003E\u003Cstrong\u003EFinancial Aid\u003C\/strong\u003E \u2013 if a student receives financial aid for books or a computer it will be very important to monitor how this money is spent \u2013 it goes very quickly.\u0026nbsp;\u003C\/li\u003E\u003C\/ul\u003E\u003Cp\u003E\u003Cstrong\u003EHave a plan to manage any refunds\u003C\/strong\u003E \u2013 Refunds can occur for a variety of reasons. For instance, financial aid may be awarded in excess of charges on a student\u2019s account and will be refunded to the student. A student may drop a class or withdraw from school and, in some circumstances, be given a credit that will be refunded. All refunds are done through a direct deposit to the student\u2019s designated checking\/savings account. Parents and students should establish a set of rules to manage any funds returned to the student. This will ensure that the money is allocated appropriately into the predefined accounts.\u0026nbsp;\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EConsider a part-time job\u003C\/strong\u003E \u2013 as important as it is for students to learn how to manage their expenses, it is just as important for many students to understand how to earn extra money while in college. It has also been documented that students who work during college tend to perform better academically. While opportunities exist off campus for students to earn extra income, Georgia Tech also offers a variety of opportunities right here on campus. Visit \u003Ca href=\u0022http:\/\/www.career.gatech.edu\/\u0022\u003ECareer Services\u003C\/a\u003E for information on part-time employment and other career strategies, the \u003Ca href=\u0022http:\/\/www.profpractice.gatech.edu\/\u0022\u003EDivision of Professional Practices\u003C\/a\u003E for information on co-ops and internships, and the \u003Ca href=\u0022http:\/\/www.finaid.gatech.edu\/\u0022\u003EOffice of Scholarships and Financial Aid\u003C\/a\u003E for information on Federal Work Study. Not only does working while in college help generate income, but it also looks fantastic on a resume.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EKnow how to address a financial issue and get back on track\u003C\/strong\u003E \u2013 this is very important and a sign of maturity. Let\u2019s face it, we all have had times when we wish we had been more proactive in managing our finances. Talk to your student about the importance of understanding the financial situation they are in, how to stop the situation from getting worse, and how to proactively meet and discuss the issue with the department of concern. By addressing the situation head-on, your student is taking the first step in correcting the situation. Plus, it gives the student a sense of ownership and control over the situation.\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EStarting college is full of new experiences \u2013 from academics to sharing a dorm room. For some students, one of the most unfamiliar and overwhelming experiences is learning how to successfully manage their own finances while in college.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":"","uid":"27164","created_gmt":"2012-07-03 15:02:11","changed_gmt":"2016-10-08 03:12:29","author":"Rachael Pocklington","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2012-07-03T00:00:00-04:00","iso_date":"2012-07-03T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"related_links":[{"url":"http:\/\/www.buzzcard.gatech.edu\/tools-and-resources\/deposit-estimator","title":"Deposit Estimator"},{"url":"http:\/\/www.buzzcard.gatech.edu\/","title":"Georgia Tech Buzz Card"},{"url":"http:\/\/www.finaid.gatech.edu\/","title":"Financial Aid"},{"url":"http:\/\/www.bursar.gatech.edu\/billpayment_parents_instr.php","title":"Parent Payment portal"},{"url":"http:\/\/www.career.gatech.edu\/","title":"Career Services"}],"groups":[{"id":"1298","name":"Parent and Family Programs"}],"categories":[],"keywords":[],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:rachael.pocklington@vpss.gatech.edu\u0022\u003ERachael Pocklington\u003C\/a\u003E\u003Cbr \/\u003ECommunications Manager\u003Cbr \/\u003EDivision of Student Affairs\u0026nbsp;\u003C\/p\u003E","format":"limited_html"}],"email":["parents@gatech.edu"],"slides":[],"orientation":[],"userdata":""}}}