 1. There are good reasons to go to college.There's ample evidence that
a college degree increases earnings. People with a bachelor's degree earn 84
percent more over a lifetime than those who have only a high school diploma,
according to a Georgetown University study. The median lifetime earnings for
those with a bachelor's degree is $2.3 million, compared with $1.3 million for
people with only a high school education. If you're uncertain about whether to
plunge into college now or put it off until later in life, remember that it
could be tougher to go back once you're working or have family responsibilities.
2. There are smart ways to cut college costs.
Want to know one great way to graduate from a top-notch school without taking
away a heavy debt burden along with your diploma? Begin your studies at a
community college, then transfer to a four-year college later. Tuition at
community colleges is generally less expensive, so this is a cost-conscious way
to build credits toward a bachelor's degree and still receive a diploma from a
four-year school. Just be sure that the college you'd like to transfer into will
accept credits from the community college you choose, and that the classes you
take match the course requirements for a degree at the four-year school.
3. Start saving now.
You're thinking there's plenty of time for that later, right? Well, the
beauty of saving early and often is that it makes it possible to build up a very
impressive nest egg over time. Once you start getting a paycheck, it will be
tempting to spend every bit of it, but give serious thought to having a portion
deposited automatically into a retirement or emergency savings account. Of
course, it can be tough to set anything aside when you're dealing with student
loans, entry-level salaries and the costs of renting or buying and furnishing
your first home. You can dial back your saving if you have to, but don't let the
challenges you face prevent you from doing it.
4. Be careful with credit.
If you learn how to live within your means now, it will serve you well
throughout your life. When you use a credit card to finance your purchases,
you're paying extra every time you buy because of the interest that the credit
card companies charge you. Avoid splurging on things you can't afford, and save
up for expensive items over time. If you do use a credit card, make sure you can
pay it off in full each month to avoid hefty interest charges.
[to top of second column] |
5. Keep track of what you've got.
It's difficult to make sound decisions if you don't have a firm
grasp on your current financial situation. Get into the habit now of
reconciling your checking and credit card account statements each
month so you know your account balances and understand your
spending. Make a monthly budget and compare these statements against
it to make sure your spending remains on track.
Although students and young professionals who employ these
tactics can still find managing their finances daunting, remember
that these matters don't have to be confronted alone. The Illinois
CPA Society has a free, quick and easily identifiable
CPA
directory that anyone can use to select a local CPA. CPAs help
individuals at all stages of their financial life make the best
financial decisions.
[Text from file received from
Illinois CPA Society]
The Illinois CPA Society,
founded in 1903, is the fourth-largest state CPA group in the
nation, with more than 23,000 members. It is the premier
professional organization that represents CPAs in Illinois. For more
than a century, the society has advanced the highest ethical and
financial standards of the profession and remains a leader in
educating the public on financial issues. More on Twitter:
@IllinoisCPA.
Money management columns are a joint effort of the American
Institute of CPAs and the Illinois CPA Society, as part of the
profession's nationwide
360 Degrees of
Financial Literacy program.
 |
