Page 334 - Keys to College Success

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YOUR FINANCIAL LIFESTYLE

Examine your current financial lifestyle. Circle your answers to the following questions:
1. Which do you typically spend money on first?
a. Needs
b. Wants
2. Where do you tend to find yourself at the end of the month?
a. With a little bit of spending money
b. Down to zero
3. How do you typically use credit cards?
a. Only when I know I can pay off the balance at the end of the month
b. Frequently, and I pay the minimum each month
4. How aware are you of money coming in and going out?
a. I check my finances regularly and stay aware
b. I don’t pay much attention to my finances
5. Where do you keep money that you’ve saved?
a. In a checking or savings account
b. I don’t have savings

Add up the number of a and b answers: a_____ b____
More a answers than b answers indicates more financial stability. More b answers than a answers indicates less financial
stability. Whether you tend to be more or less stable is not a judgment on you, but an opportunity to assess the effects
of your financial lifestyle and decide if you want to adjust it in order to increase your stability. What is your reaction to
this small look at your habits? Describe your reaction in a short paragraph on a sheet of paper or digital file.

Consider Saving for Retirement

Should college students put money away for retirement? Although earlier is better
when it comes saving for retirement, it can be challenging to save when you are
struggling to cover the cost of education. Students with big tuition bills, heavy loan
debt, and/or high credit card balances should put any extra money toward those
expenses first.
If your costs are more manageable, however, you would be wise to consistently
move some cash, however small an amount, into a retirement savings account. Con-
sider looking into Individual Retirement Accounts (IRAs) offered by financial
institutions or banks. When you open an IRA, you can contribute to it monthly or
at the end of each year. There are two kinds of IRAs. With a traditional IRA, the
money you contribute is tax deductible, meaning you can deduct it from your annual
earnings and lower your taxes. You cannot draw the money out without a penalty
until you are 59-1/2 years old, and you must pay taxes upon withdrawal. With a

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