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Rachel

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A few years ago when I was a banker, a high school student came in looking for help. He was freaking out because he had overdrawn  his account again and his dad was going to take away his car. "You have to help me!" he pleaded.

Oh, to be in high school again and have the threat of your car being taken away. People, listen: Of all things to have your car taken away for, banking trouble should not be one of them. You got this. Here's what you can do.

1. Make sure you have overdraft protection set up. When you spend more than you have in your account and you have overdraft protection set up, money can be automatically transferred from your savings account or credit card to your checking account to cover whatever you bought. This transfer costs money but it's less than a full overdraft charge. But don't let it come to this. You still have to replenish your savings or pay off that charge to your credit card after the fact. Do what you can to prevent this from happening altogether.


2. Play a little money mind game with yourself. For most of us, if there is money in the account, we're going to spend it, right? And if you only have $5 left in your account until Friday and you really want that Red Bull , you are going to justify the purchase. Here's what I used to do: When I opened my checking account with $100, I considered my account at zero. I pretended that $100 = $0. That way I always had an emergency cushion. When I say pretended, I mean it. That $100 in my checking account was invisible to me. Very rarely did I let myself go below the $100 and when I did, it was usually for something "really important: the day before payday.


3. Set up a text message alert to send when you enter the danger zone. You can get a text you when your account gets down to a certain amount, whatever you designate.


4. When in doubt, send a text to check your balance. This way there is no guessing or assuming and you know exactly where you stand.


5. And of course, be sure you are logging in to online banking as often as you do Facebook.  Knowing what's up will help you stay out of trouble, at least with your bank account.

Barbara

I saw my dream car  on the way to work today. While idling at a red light about 6 blocks from work, my eye drifted over to the car on my right. And there she was...Galaxy Gray Metallic with an Ivory interior and the "hybrid" stamp on the trunk. Ahhhhh.

I heart that car...a lot.

But lately, as the 2008 Diet Coke Savings Plan (part of my down payment savings) slowly progresses forward and my Alero keeps on truckin', I've been taking a closer look at my options.

There are quite a few things to consider when searching for a new or new-to-you car. I recently came across a fantastic tip sheet from our friends in the Wells Fargo Personal Credit Management group — they specialize in vehicle lending. This resource really got me thinking about my auto search and financing.

Pretty early into my search, I settled on a hybrid. The idea of going green , plus some tax credits  for doing it, really appealed to me. However, that means paying more upfront.

And if I want to reap those tax benefits on the specific model I've chosen, I have to buy before the end of the year. But that's probably not realistic given the amount I want to save for a down payment, so I've got some thinking to do.

Could I finance a little more with a smaller down payment? Should I give up the tax break? Would it be better to wait and buy used? Should I rethink my hybrid mentality? And the list goes on...

The wheels are turning (ridiculous pun, sadly, intended).

So I decided to follow tip #6. Get the opinion of an objective friend (or more than one). What do you guys think?

Caroline

If you're off to college this fall, you've probably loaded up on the necessities  like sheets, towels and cool décor for your dorm. But put one more thing on your list, if you haven't already: a bike.

A bike probably wasn't the mode of transportation you chose in high school—and maybe you haven't ridden one since the fifth grade—but bikes are the best way to get around on a college campus.

Biking is much cheaper than driving, when you consider gas prices and parking tickets. (Ask any experienced college student—you WILL get a parking ticket!) And it's faster than walking—good news when you oversleep the day of your bio quiz.

OK, I admit, I'm a little biased. I really like to bike. My most recent vacation was spent biking—I rode a couple days on RAGBRAI®  (Register's Annual Great Bicycle Ride Across Iowa™) in July. It's a touring ride across the state. And it's ginormous—about 10,000 people participate every year. It's actually a really relaxing vacation, because when you hop on a bike you completely change the pace of your life.

That's another benefit of biking that's great for college life. When you're busy and stressed, biking to class or a study session may be just the exercise and change of pace that you need to feel refreshed. Biking around campus can also help you ward off the "freshman 15"  without dragging yourself to the gym.

So dust off that two-wheeler and pack it up! Are you bringing a bike to college?

Dinna

At the risk of sounding like a total nerd, I've never had an issue with debt and have always had good credit. Somehow, Mom and Dad got the message through to live within my means and pay off debts quickly.

Maybe it was because I saw my parents living simply, budgeting their money, balancing their checkbook, and not buying many of the big-ticket luxuries that their friends were indulging in. I can remember hearing my father say to my mother, "When you see me driving around a Mercedes , I won't be worrying about making payments." I guess I took that to heart and didn't want to worry about making payments, either.

I was the older of two kids from immigrant parents and grew up in a middle-class neighborhood. My dad was in the Navy , and my mom worked in the banking industry. My parents bought their first home when I was about 10 years old, and my mom managed the household finances.

When I was old enough, Mom gave me money management “training wheels” by putting me on her credit card account. But she didn't just hand the card to me without instructions—she taught me the basics like credit limits, balances, minimum payments, and payment due dates. And, while I didn't completely understand its value at the time, she emphasized how proud she was of her good credit rating . She said that I should try to build my own good credit by paying back my debts and always paying on time.

Now that I work in the credit card industry, I recognize the value of these lessons. And, from talking to friends, I've learned how uncommon it is for parents to give their kids the basic financial guidance I was lucky enough to get. By the time I got a credit card in my own name, I understood that each purchase I made was actually a little loan that needed to be paid back—so I really thought long and hard before using it.

Thanks to my folks, when I ventured out on my own I did so with a good credit history. This signaled to lenders that I was a good risk to buy a car or to rent an apartment. I was surprised to learn that even employers were interested in my credit rating. And, when it came time to buy a house of my own, I was able to qualify for a mortgage with a lower interest rate, which saved me a considerable amount of money.

What money management lessons—good or bad—have you learned? And who have been your teachers?

Editor's note: Please welcome Dinna as the newest member of the Student LoanDown blog team!

Kathy

During my freshman year of college, I got my first introduction to the reality of limits. Speed limits.

On my way back to Texas A&M University  from San Antonio after Thanksgiving break, I didn't have a care in the world as I drove north on Highway 21. Belting out Chumbawumba's "Tubthumping"  (or some other equally awesome ‘90s song), I hardly noticed my speedometer as the distance between me and College Station decreased.

Until I reached the thriving metropolis of Dime Box, Texas , that is.

Suddenly, I was jolted out of my temporary euphoria by the unforgiving sound of police sirens coming from behind me. My eyes darted to the rearview mirror to confirm my horror—and then down to the speedometer to see what the damage was. I was going 82 in a 70 mph zone.

You see, according to the latest U.S. Census , Dime Box has a population of 381 people—at least one of whom is a police officer. And he was clearly on duty as I sped through his town that day. Despite my best intentions, I had gone over the speed limit, and I was introduced to the harsh and expensive consequences of doing so.

Another adult privilege that comes with a clearly-defined limit is a credit card. Just like speed limits, it is important to know your credit limit (also known as a credit line) and be sure not to go over it. Your credit limit is the maximum amount of money your credit card company is willing to lend you, and it is specified by your "Card Agreement and Disclosure." If you go over your limit, you will likely be charged a fee (again, this should be specified by your card agreement).

Let's do a little credit limit math: Say you have a $500 credit limit. This month you charge $200 on your credit card for essential purchases such as gasoline , groceries  and an oil change . If you pay off $150 of your balance on your statement due date, you have a remaining balance of $50 and you are $450 under your credit limit.

It is important to note, however, that credit cards vary in terms of when unpaid balances begin to accrue interest—so you need to monitor your account to see what your actual balance and remaining credit is at any given time.

Confused? Check out the "Young Adults" section of the Hands on Banking® program—Wells Fargo's fun, educational resource to help you learn about financial topics such as this!

Caroline

Since July 4th is tomorrow, let's talk about another kind of "Independence Day"—the financial type.

I've always liked feeling financially independent. I had a paper route  as a kid and relished having my own money for movies, candy and Ms. Pac-Man . I worked as a grocery checker  in high school, spending my cash on clothes and other extras I wanted for myself.

In college, I was able to pay my own way through school with a combination of grants , scholarships, student loans, work-study  and regular jobs. And after college, I was soon on my own and paying all my own bills from cable to car insurance.

But I distinctly remember the day I felt truly financially independent. I was 29 years old and had just purchased my first car without consulting my parents in any way, shape or form. Finding that little Mazda  all on my own and securing the financing was a little scary, but it felt great. I'd crossed that final bridge to true financial independence. Light the sparklers!

Got any stories to share about your own Financial Independence Day?

Rachel

Yesterday we asked: What does your first car say about you? Well, if you are what you eat, and you are what you read, one could make the assumption that you are what you drive. The only problem with this logic is that it's much easier to choose what we eat and what we read. And what we drive, especially for those just starting out, may just be a matter of happenstance.

I'd like to give a quick shout-out to my fellow drivers who rock their hand-me-down Hondas and Volvos with names like "The Beast." Your car—regardless of year, make or model—may not define who you are, but it will help build your character.

The great news is this year Wells Fargo will be giving one lucky student an opportunity to make a statement of their own—with a chance to win a 2007 Honda Civic Hybrid!

We call it the MPG3 Sweepstakes:

MPG = Miles per gallon
MP3 = iPod®

Here's the deal. When you open a Wells Fargo College Checking® account, you're automatically entered to win:

• Grand Prize: 2007 Honda Civic Hybrid with an 80 GB video iPod loaded with the top 25 college albums of 2007.
  
  
• First Runner-Up Prizes: Five winners will be awarded an 80 GB video iPod loaded with the top 25 college albums of 2007.
  
  
• Second Runner-Up Prizes: 20 winners will receive free music for one year to be awarded via 30 free downloads per month from eMusic.com .

You can also go straight to http://backstage.wellsfargo.com and enter on your own. (Maximum of two entries per person; see the complete rules here.)

So keep reading your choice of books (or those selected by your professors), eat well at your dining commons, and enter the Wells Fargo MPG3 Sweepstakes for a chance to win!

Staci

The Student LoanDown wants to know: What does your first car say about you?

My first car was a 1981 Honda Accord hatchback, pretty close to this . Turquoise blue with a racing stripe and an AM radio—hot. My mom bought it for me after my sophomore year in high school, but I had to wait until I completed Driver's Ed that summer before I could drive it. Twenty years later, I'm still driving a sensible Honda.

Pam's first car was far cooler than mine—a yellow and black 1956 Ford convertible with rolled leather interior. It was a 16th birthday present from her parents in 1963 . Gas cost 27 cents a gallon, so her weekly gas budget was all of $3.00. Once a convertible gal, always a convertible gal—Pam tools around in a Mercedes now.

Arriving during her sophomore year of college, Caroline's first car was a 1976 Caprice Classic in a lovely powder blue. According to Wikipedia , her car was 19½ ft (5.9 m) long—longer even than many modern full-size pickup  trucks, which probably explains why to this day she still pulls WAAAY too far into the garage and parking spaces.

Rachel's first car, which she shared with her mom, was really more of a bus: a 1987 Volkswagen Vanagon Westfalia. She'll never forget the look on the DMV guy's face when she showed up for her California driver's exam. But it was functional—it even had a kitchenette and slept four people. The family in "Little Miss Sunshine"  should've been so lucky!

A 1987 Oldsmobile Regency was Barbara's first set of wheels. She and two friends christened their boat-sized automobiles the Nina, the Pinta, and the Santa Maria  (Barbara's pretty sure she was the Pinta). Unfortunately, the Pinta had some health issues—fading paint and rust—so she didn't last long.

Why do we ask? Tomorrow we'll fill you in.