Fall * 2002

(Download the .pdf version - Adobe Acrobat Reader needed)

The beginning of the new college semester is a good time to review spending habits with your student. A few words of advice now can help your student avoid costly mistakes. A discussion of how to "live within your means" and avoid overspending may sound old-fashioned, but it is very relevant to every student's financial future.

There are typically five warning signs of overspending: always paying bills late; paying only the minimum payment on a credit card each month; exceeding the credit limit on accounts; working overtime to keep up with credit card bills; and using one credit card to pay off another.

Parents can help their students avoid these problems by stressing this list of dos and don'ts.

Do pay bills on time.
When students do not pay bills on time, they damage their credit history, which can hurt their chances of getting a loan, an apartment or sometimes even a job. If he or she cannot pay a bill on time, encourage your student to call the creditor in advance to work out a payment schedule. The best approach is establishing and following a realistic budget.
Do pay more than the minimum amount due.
Explain that making the minimum payment on an outstanding credit card balance won't do much to eliminate debt. If making only the minimum payments, it could take eight years to pay off $1,000 balance on a card with a 19.8 percent interest rate. Finance charges could total $843.
Do stay within your credit limit.
Alert your student to the fact that exceeding the credit limit on an account can damage a credit history and may result in fees. Staying within the limit is easy. Most credit card issuers have a toll-free line that students can call to check their current balance and limit. Encourage your student to call with any questions.
Don't end up in a situation where you are working overtime to pay off your credit card bills.
Living within a budget means that students should divide their monthly income, without overtime, in order to cover their expenses. If students are still having trouble keeping up with their bills, help them find ways to cut spending.
Don't juggle credit card balances.
Finally, inform your student that using one credit card to pay off another is never a wise idea. Shifting balances will not eliminate debt.

NC State offers several services to help students manage their spending habits. The Center for Student Leadership, Ethics and Public Services addresses credit card use and abuse in personal financial management workshops offered through the Leadership Development Series. The workshops also address money and debt management, personal investing and goal setting. For additional information about the Leadership Development Series, call 919-515- 9248 or visit csleps.ncsu.edu/leadership.html.

Student Legal Services is available to assist students in credit card debt. Staff members will work with students to develop a budget and can serve as a buffer to harassing collectors. Student Legal Services also provides assistance to help prevent lawsuits and give students alternatives to bankruptcy. Services are available to registered students free of charge. For more information about Student Legal Services, call 919-515-7091 or visit www2.ncsu.edu/ncsu/stud_affairs/legal_services.

For more assistance in talking with your students about money management, visit College Parents of America' s Web site, www.collegeparents.org, and review a copy of Money Talks- Helping Your High School and College-Aged Children Master the Financial Facts of Life.

Reprinted with permission from The College Parent Advisor, the newsletter of College Parents of America (CPA) - a national membership association dedicated to helping parents put their children through college more easily, economically and safely. College Parents of America, 8300 Boone Blvd., Ste 500, Vienna, VA 22182, www.collegeparents.org, 888-256-4627.

* Americana
* Bulletin
* The Nubian Message
* First Year College Parents' newsletter
* The State of Living & Learning
* Technician

Parent Resources
Questions about NC State? Answers are just a click, tap, or ring away. NC State's parents' web site features everything from a job internship network to VIP discount program information. Use the site to check on current tuition and fees, find out about events just for parents, or boost your student's spirits with an e-postcard.
The university also offers the Parents' HelpLine, a toll-free number operated by the Parents & Families Services program, to respond to your concerns. Call 877-568-5733 or email ncsuparents@ncsu.edu for personal assistance with your questions.*