PART THREE OF A FIVE-PART SERIES:Credit cards, student loans and seemingly free money inundate college students. But eventually, college life ends, and it's time to pay the bill. Don't get stuck paying interest on that pizza you bought freshman year when you have bigger things on your plate. A house, a wedding and college tuition for your own child might seem far off, but the road to a financially sound tomorrow begins today for college students.
How can Ball State University students graduate with money instead of moths in their pockets?
A myriad of ways to start saving for life after graduation exists in Muncie.
The little ways:
-Buy generic food brands instead of name brands. The small differences in price between the supermarket's in-house brand and the more popular name brand can make a bigger difference in the long run. A large box of Cheerios costs $3.89 at Marsh on Tillotson Avenue, while the store's brand, Tasteeos, costs $2.49, or $1.98 with a Fresh Idea card. A 2-pound, 10-ounce container of Quaker Oats costs $3.19, while the Marsh version costs $1.99. A box of Quaker's instant oatmeal, with artificial fruit and cream flavors, costs $3.59, while you can buy the Marsh clone at two for $3. A 15.25-ounce can of yellow corn from Stokely's or Jolly Green Giant costs 99 cents. The Marsh version costs 59 cents, while ValuTime costs 45 cents.
-Get into the habit of saving. Even if you don't have a lot of money left over after paying bills, it may be worth it to put it in the bank to finance your future instead of financing a weekend party.
-Get out of your car. If you live within the vicinity of campus, try walking or riding a bicycle. It's better for your health and you don't need to buy gas. If you're farther from campus, ride the MITS bus.
-Stay close to school for vacation. Instead of flying to Daytona Beach or Cancun, limit travel destinations to areas near Muncie, or just go home for break.
The big ways:
-Avoid credit cards. Credit companies will often advertise what look like low rates. The envelope of a recent mail advertisement for the Orbitz World MasterCard said the card had "0% intro APR," or annual percentage rate. A look at the fine print, however, revealed that the rate would last for the first six billing cycles. After that, rates would be as high as 21.99 percent, depending on credit rating. Translated into English, this means credit cards will cost you a lot.
-Quit smoking. Not only will your respiratory and circulatory systems thank you, but your pocketbook will as well. The average price of a pack of cigarettes at Marsh on Tillotson is about $3.30. If you're a pack-a-day smoker, this could cost up to $1,000 or more per year, depending on the brand. That's $1,000 you could save or spend on textbooks, new clothes, a new computer, health care or food.
-Dump the debit card. And get rid of the checking account while you're at it. Instead, open a regular savings account. You may find yourself spending less money if you can't get to it so easily.
-Open a Certificate of Deposit. CDs are accounts gather more interest than regular accounts and mature after a period of months or years. The bank will charge a penalty if you withdraw before the CD matures. The main drawback is that most CDs require minimum opening deposits of $1,000 or more. First Merchants Bank, however, offers the 1 Year Smart Saver, which requires a minimum opening deposit of $25.
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