Gina Cordell (cordegn@mail.auburn.edu)

FINANCIAL SAFETY KEY TO COLLEGE FRESHMAN SUCCESS

AUBURN -- Being a college freshman is tough enough, but the added stress of financial problems can be a nightmare. With a few simple tips, however, financial difficulties can be avoided, say Auburn University experts.

"The transition between high school and college is really rather sizeable because students have to learn a lot of life skills as well as the subject matter that they're going to be studying here for the next four years," says Fred Waddell, an associate professor in AU's School of Human Sciences and a specialist with the Alabama Cooperative Extension System. "Among those important life skills is how to keep control of your financial life.

"It's very important to get off on the right track, and credit cards can be the No. 1 problem for college freshman," said Waddell, suggesting that students "have one credit card and use that very wisely . . . pay off those balances at the end of each month."

But Waddell says keeping credit card debt in check is not an important issue just while students are in college. Credit history can also affect the future because employers can check the credit records of potential employees.

"If a potential employer checks a graduate's credit record . . . and they are not in control of money and are not paying bills on time, it will very definitely affect their ability to get a good job," he said.

Waddell also advises students to have a budget or "plan" for their finances. "Know your perimeters, and stay within those limits," he added.

Waddell also advises parents of new college students to "not get in the habit of bailing students out. Demonstrate tough love. It's very dangerous and counterproductive in the long run for parents to bail their students out."

In the event of out-of-control spending, he says parents should help their children once and let them handle it themselves the second time around.

Erin Argo of Birmingham, a senior at AU in international trade, agrees that credit cards can be difficult to handle.

"One of the biggest problems freshmen face financially is having an emergency credit card that turns into something more than an emergency credit card," she said. "Credit card debt tends to jump on you at once. It seems like it comes out of nowhere sometimes.

"When I was a college freshman, I ended up getting suckered into a lot of credit card debt that I didn't intend to, but parents can avoid that kind of problem by going over it with their students."

Argo opted to accept an on-campus job that helped to take the burden off her parents. "With an on-campus job, you can only work 20 hours, so it gives you some extra money without cutting into other activities and school work," she said.

A money management guide, College Fund-Amentals, gives students advice on how to be financially smart. To become a responsible credit user, students should get organized, make timely bill payments and keep track of finances. One of the best ways to do that is to create a budget and stick to it, says the magazine. A budget will allow students to track expenses so that they don't spend more than they have.

The magazine also gives student credit card users a warning -- negative information such as late payments and referrals to collection agencies can stay on a credit report for up to seven years and cannot be removed if the information is accurate. So, once a student's credit slips, only the passage of time can clean it up.

Kathy Waterman of Estill Springs, Tenn., a senior at AU in public relations, says fall quarter is the hardest from a financial standpoint because it's an adjustment period when students are learning how to handle their own money and freedom.

It's also the quarter that many students establish patterns that will be detrimental, says Waterman, who provided these and other suggestions to entering freshman at AU during Camp War Eagle.

"Balance your checkbook, and don't forget to deduct ATM charges," Waterman said. "Use credit cards with caution, and budget yourself."

Extracurricular activities often become expensive, and even normal things like eating out can become an extracurricular activity to some people, she said. "You can't afford to go out all the time. Try to eat beforehand or only go out a certain number of days a week," she said.

Telephone bills are another large expense for freshmen, so Waterman's advice is to be mindful of the rates, and to have a list of things to cover with parents so time is not wasted and important things are not forgotten.

As freshmen step out on their own for the first time, it is imperative that they accept responsibility on the financial front as well as the personal front. By using these simple tips and pointers, freshmen can enter college free of financial woes, and they can leave college in four years free as well.