For many students, college is the first time out in the real world and mastering money is a major milestone on the road to independence. Some rise to the challenge while others stumble slightly, while still others fall flat on their face and need reconstructive surgery to repair the damage. To avoid being the latter, here are the most common student money mistakes and how to avoid the financial turmoil caused by them.

Not knowing enough about credit cards before you get one. Many credit card companies sponsor giveaways and other events at universities. The whole point is to push credit cards on unsuspecting students. Don’t fall for it! These cards usually have good introductory rates but when a couple months go by the real rates kick in, you’ll be left wondering how your $200 balance turned into $600 in the blink of an eye. If you want to get a credit card, read Choosing Your First Credit Card to get good tips on what to look for in a card. Read more…

As new students start to enter college they will make mistakes. But forgetting to study for the mid-terms is small compared to the horror stories of people that have plummeted into credit card debt during college. These mistakes, if not dealt with properly, can cost thousands. Dealing with mistakes and setbacks is an important part to mastering your personal finances.

The best way to deal with financial setbacks is by being prepared and educating yourself about money. The best defense is a good offense after all. Unexpected medical bills and car repairs are usually the main culprits when it comes to that unexpected slide into debt. An emergency fund can be a lifesaver when those unexpected bills pop up. Make sure to put a little aside every month into a separate savings account. Make your money work for you by opening a high-yield savings account instead of a regular one. Also educate yourself on the ins-and-outs of your loans and personal finance. By reading blogs, magazines and other resources you can get some pretty good ideas on everything from easy ways to save money while in college to tips and tricks to save gas. Read more…