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What is the most efficient way to manage money as a college student to avoid debt after graduation?

I want to be able to leave college with minimal debt, and would greatly appreciate advice on how to save now for the future. #kinesiology #music #passion #college #financial-planning

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Alex’s Answer

More information is needed to answer this accurately. What grade are you in now? How much do you have saved? These answer would affect what one can recommend to you.

Money doesn't build quickly. If you're young enough, you should create a college savings account at a bank. They can be accounts similar to CDs, Savings, IRAs, etc. Lots of variety. If you're older and heading to school now, then you should have roommates, work hard to pay for living expenses from your job, go to the school that provides you with the most scholarship, and get a degree that can provide you with a job after graduation. All degrees are not created equal and if you're unemployed, $20k of debt will be extremely difficult to pay off. If you make $100k, then a $50k debt would still be manageable.

Passion is great to have for a job, but passion does not pay the bills if there are no jobs to be had with your passion. In the end, make a budget in Excel. That will show you what you will need to live, and what you have to pay for school. Be realistic in your estimations. Excel can help you see what you have to make to pay as you go, or what your monthly payments would be if everything was in loans (don't forget interest). Go in-state. You may or may not have a big name school on your resume, but you have to prioritize if get your dream school is worth the extra time in loan repayment.

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Karl’s Answer

Stay away from the all the credit card offers, do you homework on what it take to establish good credit. Choose one card with reasonable interest rate and keep a low balance. Avoid overspending on the card as much as possible and make sure you can pay off the balance at the end of the month. That does mean you have to however it a good way the set a spending limit each month.