Financial tips for college freshmen

Financial resources for college freshmen:

- "Dollars & Sense," an online program sponsored by the California Society of CPAs, is packed with money management skills for college students, including saving, investing and avoiding credit card debt. www.calcpa.org

- Compare rates on student credit cards, which generally carry lower credit limits and slightly higher interest rates, due to the risks. Companies like www.LowCards.com and www.CardRatings.com offer comparisons, based on annual fees, APRs, grace periods, credit limits, etc.

- Practical Money Skills, sponsored by Visa, offers smart basics on college student money issues (www.practicalmoneyskills.com). Its edgier counterpart, www.whatsmyscore.org, has hip tips on credit scores, apartment hunting, car buying and budgeting.

- TruthAboutCredit.org, an arm of the Public Interest Research Group, is pushing legislation to limit credit card marketing on college campuses. Its survey, "The Campus Credit Card Trap," said students get an average of five credit card solicitations per month.

Financial tips:

For parents

- Have the chat. Talk about money - what you'll pay for (tuition, rent, etc.) and what's their responsibility (social life, Starbucks, etc.). Also talk about what happens - and who pays - when the inevitable mistakes occur, like overdrafts, bounced checks or late payment fees.

- Talk them through your own credit card bill. Explain interest rates, minimum payments, grace periods and finance charges. If you've had late fees or payment problems, use these as "teachable moments."

- Credit vs. debit? Some experts recommend never giving teens a credit card, even in college; others say it teaches responsibility, if used properly. Judge your student's maturity and decide what works.

For students

- Dull as it sounds, make a budget. Use one of the Web-based student budget calculators, like www.bankrate.com. Write down everything you spend. Then tally your income. Subtract your expenses from your income. If you're short, a budget lets you decide where to cut back.

- If you're using an ATM card, don't pop it out at every stop. Instead, withdraw a set amount of cash each week for spending. When it's gone, close the wallet.

- If you're using a credit card, always pay off your monthly bill. If you don't, you're risking costly fees: late payments, overdraft charges, higher interest rates. And the start of a lousy credit rating.

- Don't forget "payment-due" dates for bills. Make yourself a reminder, sign up for e-mail alerts, write it on your calendar.

- Do your homework. Before signing up for any new account or card, check the fine print for fees and charges. Always shop around for the best rates.

- Don't use your credit card for cash advances, which generate costly fees.

- Enjoy college to the max but look for a low-cost lifestyle, whether it's consignment store clothes, used textbooks or cheap movies and concerts. To lower bills, share housing, food, entertainment. Turn off lights. Buy generic. Stay healthy.

(Distributed by Scripps Howard News Service, www.scrippsnews.com.)