Drive Safely, Save Money

Getting a driver's license is an exciting time for a young adult. A driver's license means more freedom, but also more responsibility. Driving is a dangerous activity for everyone involved. The passengers in your car have a big impact on how safely you drive. In fact, the number of young passengers in the car could be a risk factor for new drivers.

The AAA Safety Foundation found that whenever s teen driver travel has a teen passenger, the risk of a deadly crash increases by 44 percent. When there are two teen passengers, the risk of a fatal crash is double that of driving alone. And with three or more young passengers, the driver's risk of a fatal crash quadruples. 

Hopefully, by  driving safely,  you will not be involved in a serious crash. Consider beforehand the chance that your driving habits and passengers could lead to an expensive accident. Medical bills and damage to your car (and any other involved) could rapidly deplete your savings. Insurance premiums, which are already high for teens, may climb significantly following even a minor crash. Even if you don't have an accident, traffic citations for speeding or running a stoplight can carries heavy fines. And these traffic violations can look very bad if your cause a crash later on.

To avoid such dangers, limit the number of friends and other distractions you have in your vehicle. Also consider regularly driving with an adult, since adult passengers reduce your  risk of fatal accidents. Being a cautious and courteous driver helps protect you, your friends, your finances.

Question for readers: Have you ever been in a car wreck or received a traffic or speeding ticket? Have any of your friends? How were you (or they) affected emotionally and financially?
Comment below!

Reference:

Stanton, Dr. R. A. (2012, August 19). "Teen drivers need adult guidance: simple steps to help keep them safe." Lexington Herald-Leader. Retrieved August 23, 2012, from http://www.kentucky.com/2012/08/19/2304051/teen-drivers-need-adults-to-guide.html#storylink=misearch.

How to Save Money While Going to College

After paying tuition, student fees, and dorm costs, your budget probably already seems tapped out before you even go to your first 101 class. College is expensive, but there are ways for students to cut costs and save more.

·         Shop around for textbooks -- Yes, purchasing books at the school's bookstore is a great time saver because it is right on campus. However, the prices are far from the best deal. Try getting the used textbooks online from Amazon.com or other similar sites. Make sure that the books are the same edition so that the content will be the same as what is described in the syllabus. If the newest version is still pricey, though, try contacting the professor and asking if a cheaper, older edition is okay. Many instructors will not mind if you use the 5th edition instead of the 6th.

·         Sell your textbooks once you're done with them -- Let's be honest. Once the class is over, you will probably never look at that Introduction to American Government book again. Then why keep it? You can try getting the money you spent back by selling the book online. Amazon.com and eBay are good places to start. Campus bookstores will also buy back textbooks at the end of the semester. You can also cut out the middle man and sell books directly to students who you know will need them next semester.

·         Mind your food budget -- If you spent good money on a campus dining plan, don't waste it. Try to use your dining plan as much as possible and avoid budgetary black holes like coffeehouses and pizza. Students who get bored with the campus food should first explore what local restaurants provide student discounts. If you want to branch out more, plan ahead and use Groupon.com or Restaurant.com to get coupons or discounts.

·         Let your school entertain you -- The Campus Events and Student Life departments of your schools work hard to bring entertainment to the students so that they don't have to spend money off campus. Schools often host free screenings of popular movies or even have free concerts and festivals. Check your the Campus Events calendar to find out what fun things will be available for you to do for free. Is there an entertainment dry spell? It happens even at the best of colleges. In that case, you can go to movie theaters or concert venues for a discount student rate. Just do not make a habit of it. Going out frequently can quickly eat away at your budget.

Readers: How do you plan to save money while in school?
Comment and let us know!

 Reference:

Johnston, S. (2010, Nov. 16) "Campus on a budget: Money saving tips for college students." MintLife. Retrieved June 15, 2012, from http://www.mint.com/blog/saving/budgeting-tips-for-college-11152010/.

Crash Course in Budgeting: Back-to-School Shopping

Back-to-school shopping can be the perfect chance for high school students to test their budgeting skills. School supplies are an expense of which teenagers can take ownership and understand. Parents should try to use the end of summer rush as a learning opportunity, and let teens taking charge of the back-to-school money. 

Teens and parents should first establish the dollar amount to be used for supplies. Then strike a deal: If the student gets everything needed with money left over, then the remaining money can be used for something fun (movies, iTunes, clothes, etc.). The reward encourages teenagers to actively participate and shop around for the best bargains.

Students should write a list of everything they will need for the academic year, including class supplies (often given in schools' supply lists) and new clothing or shoes. Parents can then hand over the budget. Cash may be best for teens new to budgeting. Paper money is more tangible than debit; and once cash is gone, it's gone. 

After that, teens can start comparison shopping by checking prices in nearby stores or online. Students should calculate carefully since the budget money has to be stretched to cover all school-related expenses. For example, a backpack may be $5 cheaper online than in store, but the online store charges $7 for shipping. A designer shirt may be on sale for $25, but that is twice the cost of shirts at the discount store. 

Teens should also practice setting aside money for expenses that they know will arise once the school year begins. There may be required club dues to pay, or equipment fees for sport activities. Teens can contact the school ahead of time to find out about such costs, then include the fees in their budgets.

Teens can show their parents how well they managed their money by keeping track of the receipts. At the end of the back-to-school season, parents and kids can review the good spending habits using the remaining money and receipts. If there was no money left over or if the teen did not get everything on the list, then parents can explain how to shop better from now on.

Readers, what do you think? Would you like to take charge of your back-to-school budget? When is it important for kids to start learning about budgeting?

Reference: Gobel, R. (2010, Sept. 10). Back-to-school budgeting lessons. Mintlife. Retrieved July 25, 2012, from http://www.mint.com/blog/how-to/back-to-school-budgeting-09012010/.