Page 312 - Keys To Community College Success

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How Effectively Do You Manage Money?

For each statement, fill in the number that best describes how often it applies to you.
1 = never 2 = seldom 3 = sometimes 4 = often 5 = always

1. I am aware of my personal views on spending and saving money. 1 2 3 4 5
2. I know how much money I can spend each month. 1 2 3 4 5

3. I know the difference between things I want and things I need, and I shop accordingly. 1 2 3 4 5
4. I control my spending by using a monthly budget. 1 2 3 4 5

5. I successfully balance my responsibilities at work and at school. 1 2 3 4 5
6. I understand the benefits and responsibilities of financial aid. 1 2 3 4 5
7. I know the current interest rate, late fees, and balances on my credit cards. 1 2 3 4 5

8. I know my credit rating and its potential effect on my finances in the future. 1 2 3 4 5
9. I add to a savings account or CD regularly. 1 2 3 4 5

10. I have begun planning for my retirement. 1 2 3 4 5

Each of the topics in these statements is covered in this chapter. Note those statements for which you filled in a 3 or lower. Skim
the chapter to see where those topics appear, and pay special attention to them as you read, learn, and apply new strategies.
REMEMBER: NO MATTER HOW EFFECTIVELY YOU MANAGE YOUR MONEY, YOU CAN IMPROVE WITH EFFORT AND PRACTICE.

WHAT DOES MONEY
mean in your life?

According to the American Psychological Association, nearly three out of four
1
people in the United States cite money as the number one stressor in their lives. The
cost of college tuition continues to rise more quickly than the rate of inflation, and
books and other college expenses take a toll on bank accounts. Self-supporting stu-
dents have to pay for living and family expenses on top of college costs. Students who
take longer than expected to complete a degree or certificate often pay more for the
additional time in school. Add the recession that the United States is currently experi-
encing, and it adds up to challenging financial situations for the vast majority of col-
lege students.
Thinking analytically, creatively, and practically about money management can
help you take calculated risks that reward you with increased control over your
finances. First, analyze who you are as a money manager and examine the relationship
between money and time.

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