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For college students who live on campus in a dorm, life may be relatively easy. However, many students choose to live off campus and this often increases expenses considerably. Wherever you live, here are some smart great tips to live frugally and still have fun:

* Living off campus means you need a way to get to class. Find a good, reliable used car. It will cost less initially and you may be able to purchase it outright. If that’s the case, you can get by with paying for insurance, maintenance, and fuel. If you choose to live on campus, you may not need transportation at all.

* Use the public library rather than purchasing books you’d like to read. This can easily save you hundreds of dollars a year, particularly if you’re a voracious reader. Many libraries also offer movies on DVD, which means you can save on movie rental charges.

* Share an off-campus apartment with friends. This will cut down on the total amount you’ll each pay when you split the cost evenly. The more people you can have comfortably living in one apartment, the less each of you will pay.

* Eating on campus is going to be cheaper than nearly anything else you can do. This is also going to be true for non-residents and non-students alike. If you’re tired of cafeteria fare, buy food at a grocery store rather than eating out. Sure, it may take you longer to get your food when you have to cook it yourself but there are so many things you can make that cost less than at a restaurant.

* If you do go out to eat, choose water rather than getting a soft drink. You can often save $1.50 or more per meal by drinking water. If you eat out four times a month, that’s $6.00 you’ll have saved, which may be enough for another meal.

* Buy and make your own coffee rather than stopping at a pricey coffee shop. Maybe your coffee won’t be as fancy, but it won’t cost $8.00 for a single cup either.

* Clothing is a necessity no matter where you live when attending college. Go to consignment stores or swap clothes with friends. Finally, be sure to either hang items of clothing you’re going to wear again or place them in a basket to be laundered. Leaving clothes on the floor could damage them which means you’ll have to replace them sooner.

* Hit sales as much as possible. This can be for food, clothing, furnishings, or whatever. If you can get it on sale you can use the money you saved for something else.

* Go to the matinee showing of the movie you want to see rather than going when you’ll pay regular price.

* Use your student ID where they offer student discounts. You may be able to save 10% or more for items you need, so why not take advantage of it?

* Purchase used text books rather than brand new ones. This could save you considerably when you add all the books you’ll need together.

Remember, when thinking of ways for college students to live frugally and still have fun, it’s a trade off. Decide what’s most important to you and then budget your money accordingly. You don’t have to forgo having a night out with friends if you save up for it by cutting back on money spent elsewhere.

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Tracking expenses can be challenging at every stage in life, but in college it gets more complicated. First of all, for most college students this is the first time away from home and living independently. Secondly, college itself involves all sorts of expenses that can take you by surprise.

It’s not just books and tuition – food, drinks, clothes, and all those other things that were just “there” at your parents’ house suddenly need to be purchased. Here are some easy ways to keep track of those expenses so you don’t find yourself running out of funds.

1. Search the internet
There are quite a few online resources that can help you track your expenses. Do a search and find one that fits your needs and personality. Since this is a paperless method, everything can be stored on your computer’s hard drive or portable data carrier, and you won’t have to shuffle papers around.

2. Check with your bank
If your bank offers online banking, sign up. This is a great way to see your transactions in an organized way – and you don’t even have to organize them! With online banking, you can check your balance any time you have access to the internet (which is pretty much always these days), and see exactly how much money you have available and how much you have spent.

3. Computer software
The spreadsheet is still a very popular way to track expenses. Inexpensive computer software can be purchased, or often downloaded for free, to help with budgeting. If all you need is a simple spreadsheet format, your computer probably already has such software installed.

4. Old-fashioned paper
Some people just like things on paper – and if that’s what works for you, do it. It can be more hassle than it’s worth to try and conform to a budgeting style that doesn’t fit your personality. You can use a blank checkbook ledger – it’s basically a portable, paper spreadsheet. There are many ledgers to be found in office supply stores as well.

5. Paper files still have a place
There is no such thing as going completely paperless if you save receipts and other paper evidence of expenses. For these, use file folders or an accordion file with categories to stash your paper expense trail.

Whatever method or methods you choose, the important thing is to keep track of your expenses. You will have a more rewarding college experience and a better future if you do.

How to Build a Good Credit History While at College

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Many college students yearn to be considered as adults, despite the fact they’re barely out of high school. They often think having a credit card will give them the status they seek. Unfortunately, college students sometimes make bad financial decisions. Here’s how to build a good credit history while in college rather than ruining your credit.

Good credit is so important. Not only will it help you receive decent interest rates when you’re trying to buy a home – having a good credit rating can also affect whether or not you get hired for a job, since some employers are now looking at your credit history. It can also affect what type of deal you can get for a cell phone and how much you’ll pay for insurance.

Check your credit report even if you don’t think you don’t have a credit history. You can order a free credit report from each of the major credit bureaus once a year. The report is used to determine your credit score, which is what creditors look at when deciding to extend credit to you.

If you don’t think you have a credit history, it’s still a good idea to get the report to ensure there aren’t any errors. You could be a victim of identity theft or there could be an error where someone else’s information has been added to your report. It’s better to get the report now rather than wait and have your entire credit history ruined because of an error or identity theft. This will also give you an opportunity to get any errors corrected before they do too much damage.

Think about opening checking and savings accounts. Lenders see these types of accounts as signs of stability. They are also the only accounts you can have as a minor that can affect your credit history. You’ll have to wait until you’re at least 18 before you can apply for a credit card.

How is your credit score determined? It is determined by comparing how much of your available credit you use and whether or not you pay your bills on time. If you have a credit card with a $500 limit and you have it maxed out, your credit score may take a dip. Paying your bills late will also make the total score go down.

To ensure you pay your bills on time you can either set up automatic payments or mark them clearly on your calendar so you’re not late. One missed payment can affect your score and it won’t be taken off your report for seven years.

Try to keep the balance you owe on credit cards less than 30%. This will keep you from getting into credit card debt you can’t pay, and will help you maintain a good credit score. Paying off your balance each month is also a great way to build your credit history while at college.

Remember, credit cards are like a double-edge sword. With one edge you can build your credit history. With the other you can tear it down. Once you’ve learned how to build a good credit history while at college, don’t neglect it. You’ll want to get your credit report each year and ensure your credit history stays good.

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Many people have heard about trust funds and custodial accounts. But what is the definition of a custodial account? Why are they an option that parents or grandparents may want to consider for their own children?

In its simplest terms, a custodial account is any account which is created for the benefit of a minor. This means you can make investments on your child’s behalf. You can also transfer property you already own to that child. You can open accounts (whether at a bank, brokerage firm, insurance company, or mutual fund company) in your child’s name and have it managed for them.

You choose who will act as the custodian of the account. This could be you or another adult you feel is financially savvy and who is trustworthy to manage the account. It could also be a financial institution.

You choose when the child reaches the age of majority where they are able to access the funds in the custodial account. This age is usually set at either 18, 21, or 25 years of age. Factors that determine this are the state in which you live and which type of account chosen. “Majority” is the age at which the child has the legal right to control the account and use the assets as they see fit.

There is one thing to consider before choosing this option as a means to reduce your own tax liability. If you have these assets in the child’s name, it may limit the amount of financial aid your child qualifies for when they decide to go to college.

There are two major tax rulings concerning custodial accounts: Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA). Under these rulings, earnings or interest up to $800 are tax-free for children under the age of 14. Amounts over $800 but less than $1,600 are taxed at the child’s rate. Anything over $1,600 is taxed at the parent’s tax rate. Once the child turns 14, earnings and interest will be taxed at the child’s rate, which is considerably less than what a parent would pay.

In some cases the custodial account may be set up to support a minor child under the UTMA. This means the custodian may use funds from the custodial account to pay for things benefiting the child. One such case may be a grandparent setting up a custodial account for a special needs child’s daily living as long as a parent or guardian doesn’t avoid using their own funds to support the child.

You’ll want to talk to a professional financial counselor or lawyer before setting up a custodial account. This will ensure you understand the definition of a custodial account, what benefits it has, and any legal obligations regarding this type of account. They will also be able to advise you on the particulars for setting up the account, the best majority age, and any limitations to the account.

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You may have heard the saying “money doesn’t grow on trees.” You may have even told your children the same thing. Here are ten ways you may want to try to teach your kids about money.

When you decide to teach your children about money is something you and your partner will want to discuss. They will obviously learn something about money at school, but you may want them to learn some specific things:

* How to earn money by having a job
* How to save money by setting aside money for larger purchases
* How to budget by limiting how much is spent each month to ensure needs are met prior to purchasing things they want

Don’t be afraid to talk about your family’s finances. Talk about what you do for a job and why you work. Explain to them that you have monthly bills that must be paid. Tell them about how banks are used to hold money and disperse it to pay people.

1. If you don’t currently have a budget, take the opportunity to do that as a family. This allows everyone to understand what money comes in and what goes out each month.

2. Show them your paycheck and how much is taken out for withholdings. Explain what each item is and why it’s important.

3. Let them watch you fill out the deposit ticket. Show them how you can keep some money out as cash and the rest goes into your checking account to be used.

4. Pay your bills with them watching. Explain why you choose to pay bills according to due date and what happens if you’re late in paying them.

5. Tell them how long you have to work to pay for things. If your telephone bill is $50 and you make $10 an hour, it would take you five hours to pay that bill. This may help them understand the value of money a little better.

6. Some families use credit cards. Tell about the potential dangers of using them; that it’s easy to buy things you really can’t afford and that you will end up paying more for those items in the long run due to interest.

7. Consider giving them an allowance so they understand how to earn, how to save, and how to comparison shop to get the best deals. Real life experiences – whether positive or negative – may have more of an effect on your child’s learning than what you say.

8. Discuss how having money comes with responsibility. While it would be great to be able spend everything they have, that’s not a good idea. Teach them to save first, be charitable, and then spend money responsibly.

9. Allow your children to make mistakes with their allowance. If they spend everything in one day, it will help them understand the concept of budgeting when they want something later in the week. Now would be a good time to ask them to work extra to get extra money to pay for something.

10. To teach them to budget, have them write down what they “want” and then prioritize the list. Explain how to save up for larger items, like an mp3 player, by setting aside a little bit out of each week’s allowance and still have some to spend each week.

These ten ways to teach your kids about money are by no means all available. Think about your family and its needs. Then choose one of these methods or another that will best meet your goal of teaching your children about money.

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As a parent, you know your children are not shy about asking for money. Some families give their children money when they ask, others give their children allowances. If you don’t currently give your children one, here are ten things to know about allowances.

Pros for giving your child an allowance:

* You may want to teach your children how to handle money; the earlier you start the better. By beginning to teach children about money at an early age, they’ll be more teachable and less likely to question your teaching.

* Having their own money will teach children to be responsible with their money. If they’re not, they face the unpopular consequences if they spend too much or lose it.

* Parents can breathe a sigh of relief because children won’t bother them for money if they have their own.

Cons of giving your child an allowance:

* Your children may think they can buy whatever they want because the money is theirs. This may mean they buy things their parents don’t approve of, which could result in stress parents may not want.

* Your children will probably complain that their allowance isn’t enough and ask you to raise it.

1. Why give an allowance? Having an allowance can be effective for teaching your children about money.

2. What can it teach? Allowances given to pre-teens and teens can be used to help finance their college career if they choose to go. By giving them an allowance, you give them the opportunity to open a saving account and checking account, both of which will be important when they leave home.

3. When to give it? A good time to start giving an allowance is when your children begin learning about money in school. Remember, if they can’t count it, they won’t know how much items cost and how much to use to pay for them.

4. How will it be used? You may not expect them to pay for school lunches, but you do want them to have the benefit of actually paying for some items with their own money.

5. What about saving? Explain that they will be expected to save a portion of their allowance. This teaches them the importance of saving, and expecting them to put something in savings first will help them learn this.

6. Will it be tied to chores? You will want to choose between linking your child’s allowance with doing household chores. That decision, obviously, is one you’ll want to make as a family.

7. How much do you give? You’ll want to consider your family’s financial situation, how much you can afford to give, and what your children generally ask you for money for. Some reports say the average allowance for 6-8 year olds is around $5 a week, $7 for children 9-11, and $15 for 12-17 year olds.

8. How often do you give it? Depending on how often you’re paid, you may not be able to give a weekly allowance. Also, as children get older, you may want to give them an allowance on a monthly basis so they learn to budget their money.

9. What else can they learn? When you give your child an allowance, you’re teaching them about spending wisely. It’s much easier for them to learn about losing $5 now rather than $500 when they’re older. An allowance gives your child a chance to make mistakes now when the stakes aren’t so serious.

10. What about docking their allowance? There may come a time when your child does something that makes you want to keep their allowance to teach them a lesson. If you choose to do this, don’t overuse this technique. It may cause resentment in your children.

Allowances and whether to give them is something each family will want to decide on their own. These ten things to know about allowances are by no means complete, but some things you may want to consider when deciding if they are right for your family.

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Parents and grandparents want the best for the children in their lives. With this in mind, some of them establish children’s trust funds – often days after a child is born. You may think wealthy families are the only ones who can establish children’s trust funds, but that’s simply not true.

What are children’s trust funds?

Children’s trust funds are similar to long-term savings accounts set up by parents or grandparents for the benefit of a child. It is a legal entity whereby one party, normally the parent or grandparent, sets aside a certain amount of money or property for the benefit of a minor child.

The property (money, stocks, bonds, or physical property) is held in trust by a trustee. The trustee is the person who looks after the property for the benefit of the child. This person may also be the grantor (the person who gave the money to the trust), but does not have to be.

There are two basic benefits of setting up a trust for a child:

1. The child is too young to manage the property. By setting up a trust for the property, the assets are protected for the beneficiary. The trustee will protect the assets until the child has reached the age set forth in the trust. Often children’s trust fund will set an age of 18 to 21 as the age at which a child may access the account.

2. The person setting up the trust is looking for tax savings. Income, estate, and gift tax advantages are common when establishing a trust for a child or grandchild. To understand the tax advantages of establishing a trust for your loved one, contact a professional tax advisor or financial consultant.

Once a children’s trust fund is established, the funds belong to the child. The person setting up the trust cannot reclaim the fund. Depending upon how the trust is set up, the child may be able to access some of the income or principal from the trust. Normally, however, trusts are set up to limit a minor’s access to the trust without getting approval from the trustee.

According to the Internal Revenue Service (IRS), there are two types of trust funds they will acknowledge. The first is the 2503 which allows the use of the funds until the child reaches 21, at which point the money is disbursed and the child may choose to reinvest or spend as they see fit. The second is the 2503b which distributes money to the child each year. If the child is too young, the money may be set aside in an account until the child is old enough to be given the money.

Choosing to establish a children’s trust fund is a serious matter. You’ll want to think about who should be the trustee, what requirements are going to be set in place, when or if the child will be able to access the funds while a minor, and more. To better understand children’s trust funds, speak with a lawyer and financial consultant. They will be able to give you the best advice for establishing the trust for your child or grandchild

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Economic circumstances can change rapidly for families and individuals. To help prepare for this reality, you can begin teaching children about money and financial responsibility while they’re young.

You may think your children are too young to learn about money, but unless they’re preschoolers or younger, this isn’t the case. In fact, the earlier you can start teaching children about money, the better off they will be because they’ll have practical knowledge and can learn to handle money wisely now.

The following seven benefits of opening a traditional bank account for children may encourage you to start the process.

1. Teaches them about money – Opening a traditional bank account will allow children to learn basic accounting principles. Let them be responsible for keeping their own account register. This may also teach them that everything costs something – in money and in time.

2. Prepares them for the future – Giving children a weekly allowance will prepare them for being paid as an adult and is a tangible way to teach them about money management. Teach them how long they’d have to “work” to purchase an item; those $100 shoes they want would cost 10 hours of labor to pay for if they make $10 per hour. Ask them if the shoes are truly worth that much time and effort.

3. Teaches them about saving – Having your children put money aside from their allowance teaches them to save. This teaches responsibility with money, budgeting by saving for something they want, and patience to wait until they have all of the money to buy that item.

4. Teens can learn to do their own banking – This is especially important if your teen does odd jobs to earn money or is working a part-time job. Having their own bank account enables them to keep track of their money and will teach them to be responsible and put money aside rather than spending it all.

5. Teaches them to save for the future – If your child is interested in going to college, having a bank account gives them a place to put money aside. Having a savings account is also a good option if they want to purchase a car. By having the account now, it will teach them to save for big ticket items they’ll want or need.

6. Savings accounts for minors are tax free – Start the account in your child’s name and with their social security number and you won’t be responsible for taxes on any interest the account earns. If your children receive cash gifts from family or friends, they can add to the account at any time. Of course, if your children are minors, an adult will have to be on the account as well.

7. Allows them to see where family money is spent – Setting up a traditional bank account for your child will enable them to see the process of earning an income and can teach them how you choose to spend that income. You may even want to consider getting your children’s input when you have discretionary funds.

One of your goals as a parent may be to teach your children to be financially responsible. Helping them open a bank account is a great start to teaching them about money and how to use it wisely.

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Parents hope for their children’s lives to be better than their own. They want to ensure their children have opportunities they may not have had. One way parents can help prepare for their children’s future is by opening a children’s savings account (CSA). But what are children’s savings accounts and how can they benefit your child?

One benefit is to help your child’s savings for Education. Upromise was founded with a single mission in mind — to help families achieve the goal of a college education for the children they love. Upromise provides the programs, products, and information parents need to help them reach their college-savings goals and it’s free to sign up.  I personally use this program for my son’s future education and it is awesome.

College educations cost anywhere from $30,000 and more for a Bachelor of Arts degree depending upon the course taken. With expenditures this high, beginning to save as soon as possible is a wise financial move. In the past, the Education Individual Retirement Account (Educational IRA) was limited to having $500 added to the account each year. When the accounts were renamed in 2001 to the Coverdell Education Savings Account, the contribution limit was raised to $2,000 per year.

Any parent, grandparent, or other adult can set up the Coverdell Education Savings Account and designate a child seventeen or younger as the beneficiary. Contributions are added each year. These contributions are not tax-deductible; however, as long as withdrawals are made to pay eligible school charges (tuition, books, etc.) they can be withdrawn without being taxed.

What are some of the other benefits of starting a children’s savings account for a child you know? Here are a few of them:

* You can add money to the CSA and receive credit for doing so up to the date you file income taxes in April.

* Instead of having a cut off of the child’s eighteenth birthday, contributions for children with special needs can be made past their eighteenth birthday.

* Any adult can add money to a child’s account as long as the total contributions for the year do not exceed $2,000. If money over $2,000 is placed into the account, there is a six percent excess contribution tax charged even if the funds come from different people.

* You can start a Coverdell account and a state-sponsored college tuition program account for the same child.

* Coverdell and other children’s savings accounts can be opened at any financial institution that offers IRA accounts. The contributions can also be made in any of the following – stocks, bonds, mutual funds, and certificates of deposit – as long as the contribution does not exceed $2,000 per year.

To learn more about the financial benefits of starting this type of children’s savings account, talk with a financial counselor. They will be able to give you more information and answer any questions you might have.

A college education is a dream many parents have for their children. However, the cost of that education is exorbitant for many families. It’s possible to begin to save now for their education as long as they are younger than seventeen. Learn all you can about what children’s savings accounts are and how saving now can help your child with their educational future.

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Parents often make the mistake of thinking that preschoolers are too young to understand financial matters. It’s true that kids that young won’t understand compound interest or mutual funds, but there are some things they can learn about money that will benefit them later in life. Here are some things that we as parents can teach our kids at a young age.

One of the first things that kids learn about money is that you can use it to buy things. We rarely have to teach them this, because they learn it from being with us when we go shopping. But they are usually unaware of most of the aspects of money we take for granted.

* Preschoolers can learn about the different denominations of money. They may not remember that there are 100 cents in a dollar, but they can usually recall which coins are worth the most and least. Learning a little about this before they start school will give them a head start in math.

* You can teach the basics of bank accounts. When kids see us writing a check or swiping a card and taking something home, they may think we got it for free. Teaching them that you have to have money in the bank in order to write a check or use your debit card will help them understand that the things we need in life come at a price.

* Preschoolers are not too young to learn about earning money. You can assign chores and pay them a certain amount for each one completed to illustrate the concept of working for money.

* Saving money is an important lesson for kids to learn young. You can help instill the importance of this by encouraging them to save a portion of their allowance. After they have saved for a few weeks, help them count up how much they have and decide what to do with it. Or better yet, have them set a goal for savings and see how long it takes to reach it.

* Shopping provides a wealth of opportunities to teach kids about money. You can discuss how to save money by using coupons and buying things while they’re on sale. You can set a budget and see how much you can buy with it. And you can let them help you count the money when it’s time to check out.

Small children catch on to the importance of money quickly. We can help them develop a healthy attitude toward it by teaching them basic concepts and modeling good spending and saving habits. This will build the foundation for a lifetime of good money practices.