Text (http://msnbc.msn.com/ID/5876473)

I disagree with his logic on the $200 coat for $100. If you were planning on spending $200 on a coat that you needed and you got it for $100, you saved $100. Now if you didn't need it, you just wanted it... that's a different story. And that's the problem - differentiating between wants and needs. He's got some good points though - keep track of your spending, don't let your credit cards get out of control, shop at second-hand stores, SAVE money...

He forgot #14 - if you are going to buy stuff you don't really need, at least find a deal on it at GottaDeal.com :)

Mostly common sense stuff. I like this part: "Use cash whenever possible because counting out the bills underscores the connection between the purchased item and money leaving your wallet."

I don't know about you, but I can't ever remember seeing someone at the register pull out the cash, stare at it, think about it for a few seconds, and then decide not to buy whatever they were going to buy, lol.

mugs,

Great article, thanks for posting this :)

Hmm, isn't 90% of that common sense?

common is far from these days. most people are stupid.

Hmm, isn't 90% of that common sense?

The fact that you recognize that is a good sign - most college students have a very difficult time managing their money, especially when the credit card offers start pouring in. A girl I went to high school with managed to rack up a $6000 credit card bill in her FIRST SEMESTER for non-necessities (eating out, tons of clothes, etc).

The fact that you recognize that is a good sign - most college students have a very difficult time managing their money, especially when the credit card offers start pouring in. A girl I went to high school with managed to rack up a $6000 credit card bill in her FIRST SEMESTER for non-necessities (eating out, tons of clothes, etc).


I don't see how she could have done that without thinking to herself once "Sh1t... I am really digging myself a hole here."

If your that oblivious, you shouldn't even own a credit card :D

heh, i seem to do all right, even with buying myself goodies, eating out, and new clothes often.

right now my $3300 visa is at ~$1400 balance. My $3700 Amex Blue is at ~$150 balance. All my store cards are clear. all this working only 15 hours a week, and going to school full time.

THe only reason my visa is so high is i just started a new job (school job at a public university, there's a 6-8 week lag between job start and first money).

l

Zugzwang152,

Just remember to make your cc payments on time even if you can only afford the min montly payment.

Do your VISA or Amex cc's at least offer perks/rewards?

Zugzwang152,

Just remember to make your cc payments on time even if you can only afford the min montly payment.

Do your VISA or Amex cc's at least offer perks/rewards?

They surely do. In fact I posted them in the "what credit cards do you have" thread. :2roller:

He forgot #14 - if you are going to buy stuff you don't really need, at least find a deal on it at GottaDeal.com :)

Mostly common sense stuff. I like this part: "Use cash whenever possible because counting out the bills underscores the connection between the purchased item and money leaving your wallet."

I don't know about you, but I can't ever remember seeing someone at the register pull out the cash, stare at it, think about it for a few seconds, and then decide not to buy whatever they were going to buy, lol.

Actually, I do that. It's one of the reasons I always pay with a check for anything larger than, say, $100, so I have to actually fill out the check and get it through my head... "this is $120."

I don't see how she could have done that without thinking to herself once "Sh1t... I am really digging myself a hole here."

If your that oblivious, you shouldn't even own a credit card :D

The problem is most young adults have a rotten understanding of personal finance. They get to college, and the first week there they see reps from banks pushing credit card applications on them. What's the harm, right?

Many students disassociate from the total balance, and only see the minimum payment. They don't understand they could still be paying 18 years later for last night's pizza if they only pay the minimum every month. Buy another $100 of clothes? "That's only $2 more a month, I can afford it."

And one day they realize they ARE in a big hole. They just don't see it coming due to inexperience. And the banks don't mind, of course. They know that if Junior gets in too deep on his brand-new credit card, mommy and daddy will probably cover the bills so Junior's credit rating doesn't go in the dumper. Best case scenario for the bank - high interest balances with low risk!

Hmm, isn't 90% of that common sense?

You would think so, but I sure could have used a lot more of that common sense before I started in college. Especially "Pay off your credit card balance fully" and "Keep track of your spending." I think about all the money I could have put away in college, since I was living at home for the first couple of years and basically my expenses were tuition, food, and car insurance. I had the mindset that since I had the extra money I could spend it. :fryingpan

As many times as he said students were "astonished" by this or that, I have to wonder about what kind of morons they are letting into college.

I think all of this stuff is common sense. It's not that they don't know that "$20 a week for 52 weeks is $1040??? OMFG!!!", it's that they don't care.

I think all of this stuff is common sense. It's not that they don't know that "$20 a week for 52 weeks is $1040??? OMFG!!!", it's that they don't care.

Another part of it is that many students are used to their parents footing the bills for everything or the major purchases such that they've never had to budget.

Another part of it is that many students are used to their parents footing the bills for everything or the major purchases such that they've never had to budget.

Very true. I made sure that I always handled the finances when I went to college; that way I was always aware of how much I was spending, where my scholarship money went, and how much my tuition and room and board was costing me.

Very true. I made sure that I always handled the finances when I went to college; that way I was always aware of how much I was spending, where my scholarship money went, and how much my tuition and room and board was costing me.

Good for you! My sister learned this all the hard way when she was in college .. my parents paid for everything her financial aid package didn't cover. When she wanted to take over paying for everything herself (our parents use, or used rather,money as a way to control what we did, if we didn't come home every other weekend or anything else they'd bring up the fact that they were involved financially, basically hinting that'd they would cut us off!) she was blown away with how much everything cost. With a little guidence she's completly covered all her education expenses and is now in grad school, no loans or credit cards!

I think this is all a matter of common sense, or lack there of! If you're going to buy a $200 coat and it's only $100 that's a good deal but if you buy it just because it's 50% off that where you're going to get into trouble! Same with anything else! I still don't understand why anyone would pay full price for anything, ever! That's why I love GottaDeal :g_dance:

common is far from these days. most people are stupid.

I was in college when ATM machines were still fairly new... I knew a girl that couldn't grasp that every dollar she took out of the machine was attached to a bank account that SOMEBODY was putting money into... Her parents kept checking the balance and kept putting money in it when it got low...

Obviously, her level of "financial acumen" was her parents' fault, but I don't think that it was all that uncommon either... And I think the same is true in *most* households across the country today...

Think about it this way, most households are in debt... when people are in debt, they try to shield their kids from the "stress" of financial matters... so the kids never learn about finance from their parents... and they certainly don't learn it in school (at least not in the depth that they should)... so they get to college and they're not prepared to make financial decisions... I really think this is the case in the *majority* of American households...

Holy old thread bumpage! This one was a year and a half old! What ever happened to AFB/AMDFanBoy? I haven't seen him here or on AT lately.