Yay, fall! Not only are the leaves beginning to turn shades of red, yellow and brown, but it's tailgating and football time! I'm more partial to the tailgating aspect of the sport. However, as a native Nebraskan, I've basically been programmed since birth to follow Husker Football . Admittedly, though, I've always been more interested in the marching band  — Go Big Red ! 

Whatever team you're rooting for this fall, be it in football or another sport (or the marching band) you can learn something from their strategy. No team goes into a game without a plan. It takes lots of research, practice and dedication to get the win.

The same can be said of your financial world. It's best to have a game plan, more commonly known as a budget, to ensure you succeed.

For those of you who've just graduated, this is especially important. With your student loan grace period dwindling, the first payments toward your debt aren't far away. There is no time like the present to evaluate your financial obligations and determine the best plan of action.

Just like with sports, you can find resources to coach you through. Here's a great article  to consult when you're making your first budget or evaluating your current budget.

By sticking to the right game plan, you're sure to come out on top. Go team!

Posted by Barbara at 10:15 AM |  Contact Barbara |  Permalink  |  Comments (2)
Found in Budgeting, Debt, Financial education, Looking back, Money management, Paying, Post-college, Preparing, Student loans, Wells Fargo Bank

It's hard to avoid all the bad economic news  these days. College students, I wouldn't blame you if you're nervous about leaving the safe confines of campus. The real world isn't looking too inviting these days.

So with a rough economy, are you considering grad school as — and forgive me as I pull from the headlines here — a bailout plan?

I found a great story  on NPR on this very topic. It pretty much confirms my opinion on the subject: Going to grad school just to ride out the bad economy or because you don't know for sure what you want to do is not such a good idea.

However, if you do know what you want to be when you grow up, and grad school is a means to get there, then certainly, go.

I know it often feels like the smarter choice to stay in school rather than graduate with a bachelor's degree , only to find yourself still working at a coffee shop or taking some other job that doesn't require a $75,000 education.

But the truth is, if grad school is just a chance to bide your time and figure out your goals, then you're better off getting a job — any job — than taking on more debt.

What do you think? Is the state of the economy impacting your choices as you prepare to graduate from college?

Posted by Caroline at 10:00 AM |  Contact Caroline |  Permalink  |  Comments (1)
Found in Back to school, Debt, Financial education, Graduate school, Jobs, Paying, Wells Fargo Bank

On Sunday I went to the ATM, which I usually do in order to have some cash for the week. After I'd gotten cash, I went to put away my debit card and noticed that I had a check from my best friend Charlie to deposit. So I put my card back in the ATM, completed the deposit, took my receipt, and drove away.

Without my debit card.

Half an hour later — while in the grocery store checkout line — I opened my wallet and realized what I'd done. I paid for my groceries with the cash and flew back to the ATM to see if my card was still there.

It wasn't.

Panicked, I called the Wells Fargo Phone Bank to cancel the card. Fortunately there hadn't been any charges on it, but it was going to take five to seven business days to get a new one. Then I really panicked. How was I going to function for that long without my debit card?

For me, check writing has gone the way of the dinosaur . I'm lucky if I write one check per quarter, and that's usually only for some rare service that doesn't take online payments. But I don't think I'm alone — some new checking accounts no longer come with paper checks. And many retail establishments don't even take checks anymore.

Even if I have become overly dependent on my debit card (is there some sort of twelve-step program  for that?), for the next five to seven business days I will have to be creative, patient, and frugal — or resort to writing a check or two. Barbara would probably argue that this is a good lesson for me: forced thriftiness!

What payment methods do use most often? Are you as addicted to your debit card as I am?

Posted by Staci at 10:10 AM |  Contact Staci |  Permalink  |  Comments (8)
Found in Banking, Checking, Debit cards, Financial education, Money management, Paying, Shopping, Wells Fargo Bank

It's payday today.

I always know when it's payday. It's the curse of a young professional with financial OCD (and usually a fairly low checking account balance).

A couple Fridays ago, Staci and I were heading out to enjoy some lunch together. I mentioned that I could go somewhere a bit more spendy since my cash flow wasn't as tight thanks to payday. To that, Staci responded, "Oh yeah, I forgot it's payday."

And with that response I mentally put a milestone on my financial roadmap. It's a bunch of financial accomplishments that I'm looking forward to reaching — like buying something at Nebraska Furniture Mart without financing.

The new milestone: Not knowing if it's a payday Friday.

When I reach that point, I'll know that my money isn't as tight and I won't worry as much about little things throwing a kink in my budget.

Reaching those financial milestones, even though they may seem tiny, can really boost your confidence in your financial future. If you're like me, hitting those places on your financial roadmap can be just the motivation you need to keep on truckin' toward the next goal.

What are your financial milestones? Paying off loans? Savings goals?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (3)
Found in Budgeting, Checking, Debt, Financial education, Money management, Paying, Saving, Wells Fargo Bank

We've talked in the past how valuable internships can be. This summer I got the chance to meet a super-cool student who got a head start when it comes to internships — in high school.

Jacob Jackson is now a senior in high school here in Sioux Falls, and he was an intern at Wells Fargo this summer. An internship in high school...how awesome is that?

Jacob is in a program through his school called the Academy of Finance . Students in the program take classes throughout their junior and senior years that deal with business and finance. Then, during the summer they apply for paid internships that put their knowledge to use.

Plus, they get college credit! When he's done with the whole program, Jacob will have around 16 credits to take with him to college.

Before Jacob left to head back for his senior year of high school, I got the chance to talk with him about his experience and what he was taking away from his internship and the program.

At first, he told me he wasn't very keen on the idea of participating in the program. His aspirations were leaning more toward the literary world than the financial realm in becoming a writer or novelist. Jacob didn't think that the experience would change his plans, and it may not have, but he definitely gained some perspective on his different options, like one day running his own business.

And his internship offered more perspective. In addition to his daily work, Jacob got see how the business ran from start to finish. He spent time with each group learning what they do and how it affects the business. Particularly, he found himself interested in Marketing and is considering that as a college major.

Another benefit of his work at Wells Fargo: learning about student loans. Before starting work here, Jacob had no idea about how student loans worked. Obviously this isn't a perk of all early internships, but it's helpful nonetheless.

Have any of you readers participated in or heard about similar programs? I'm curious what you learned or how the experience changed or affirmed your future plans.

Posted by Barbara at 10:10 AM |  Contact Barbara |  Permalink  |  Comments (2)
Found in Academic Credit, College, Financial education, High school, Internships, Money management, Student loans, Wells Fargo Bank

I was listening to NPR  the other day and heard this story  about students downloading their textbooks from the Internet. It's not legal — similar to downloading music from unauthorized places — you can't just take copyrighted material without paying for it.

Downloading books is something that never occurred to my 37-year-old self, but I can understand the temptation. I've written before about the expense of college textbooks. And again this semester, my stepdaughter spent about $540 on her books.

Making textbooks available electronically makes sense to me. It would save trips to the bookstore, reduce paper waste, and relieve students of having to lug around (and store) heavy books.

Based on the article, it sounds like some publishers are beginning to offer digital versions of their textbooks at discounted prices.

Is this something you would consider instead of purchasing books the traditional way?

Posted by Caroline at 10:40 AM |  Contact Caroline |  Permalink  |  Comments (2)
Found in College, Paying, Saving, Shopping, Wells Fargo Bank

Not long ago I read an article that made me cringe: A graduate student at California State University, Northridge  decided to put her tuition on a credit card.

On her credit card? With all the other options out there? [Gasp.]

Although Jennifer didn't put her tuition on her credit card, she did charge some of her living expenses, which left her in a bit of a bind. Here's the final part of her story.

Mistake #3. Living on Credit — Not Taking out Enough Money in Loans to Cover Living Expenses

When I went away to college, my mother made a deal with me. She would give me an allowance of $200 every two weeks for living expenses (basically all she could afford). She also got me a credit card. Six years later, we still have the same deal and the same credit card.

When I took out loans, I only borrowed enough money to cover tuition costs and my rent. As it turns out, that $200 every two weeks hasn't been enough to live on, and I now have a standing balance on my credit card that I can't pay off.. Very recently a wise financial advisor pointed out to me that the nearly 18% interest rate that I pay on my credit card balance exceeds the interest rate of my student loans. Neither my mother nor I thought that it might be a good idea to budget living expenses into my student loans even though she's encouraged me to keep putting the larger, unusual purchases on my credit card.

Now that we've learned out lesson, my credit card will be paid off this fall before I start my new grad program. I've taken out extra money for my living expenses and I'm going to try something new once I'm established at school: My credit card is going in the pencil box that I bury in the bottom of my desk drawer, and I plan to withdraw a budgeted amount of cash every week.  The objective will be to live “cash to mouth,” or to make the cash last the whole week, without running out — groceries, coffee, everything. Any extra cash will go into a reward fund that I will utilize at graduation, one year from this September.

While the economy is increasingly digital, and more merchants can handle small $2.00 coffee transactions digitally, stick to cash because it's tangible. It's easier to see how the coffee adds up when you're making change and not just handing over a thin slab of plastic.

How many times have I heard that little gem of wisdom before? Lots. But there's no teacher like experience.

Jennifer's right — there's no teacher like experience. But perhaps the mistakes she made (or almost made) can help you avoid some financial pitfalls of your own.

Want to tell your student loan story? Have any wisdom to share about your own financial experiences? Send us an email — we'd love to hear from you!

Posted by Staci at 11:40 AM |  Contact Staci |  Permalink  |  Comments (2)
Found in Back to school, Banking, Federal loans, Financial aid, Financial education, Interest rates, International students, Lenders, Paying, Post-college, Preparing, Private loans, Student loans, Wells Fargo Bank

Generally, Wells Fargo recommends that students exhaust all of their "free money" (such as grants and scholarships) first, then borrow federal student loans, and if they need additional funds, consider private student loans .

Graduate student Jennifer weighs the pros and cons of that borrowing strategy in her next segment.

Mistake #2: Not Considering a Private Loan over a Federal PLUS Loan for Graduate Students

When taking out my loan for grad school, I decided that I had better do my research this time. As a grad student, I now qualify for federally subsidized loans. Stafford loans only go so far, and to finance the shortfall, my options are either a Federal PLUS Loan for graduate students or a private loan. A Federal PLUS Loan for graduate students has a fixed interest rate, so of course, this is the best option. But is it really?

The terms for the two loans differ: PLUS loans have a ten-year repayment term, which can be extended with broad deferment options (including one that covers insufficient salary), and a fixed government rate of 8.5%. Private loans have a longer repayment term — up to 25 years depending upon the lender — and relatively narrower deferment options. The interest rate on private loans is based on the Prime Rate  (which is the federal funds rate plus 300 basis points, or 3%), plus a margin (one or more percentage points) based on your credit history.

Now, here's the kicker: for a private loan, the Prime Rate, plus a percentage point or two, may yield an interest rate lower than the Federal PLUS Loan if you have a good credit history. However, choosing a private loan is a gamble. The economy is currently in pretty bad shape, and the Fed has been keeping interest rates low, but inflation is also a risk — it may lead to the Fed raising interest rates in the future. The Prime Rate has ranged from 4 to 9.5% since 2000 and currently sits at 5%. Banks calculate the applicable Prime Rate differently. For example, banks can use the monthly average, yearly average, or the rate on the final day of each month. If you're going to go with the private loan, make certain that you know how your lender will calculate the interest rate.

A private loan may be the way to go if your career path is more certain and you have a good idea of what your salary will be upon graduation — i.e., you don't actually need the longer repayment term, and you can repay the loan sooner before economic conditions change too drastically and take advantage of a relatively certain lower rate of interest. But again, this is a gamble. It might be smarter to go with a Federal PLUS loan if you tend to procrastinate or think that you'll need to utilize the relatively broader repayment deferment options.

Ultimately, it comes down to this: You have to do what's best for your own financial situation, and what might work for one student might be completely wrong for another. So do as Jennifer did — if you need to take out a student loan, weigh your options, weigh your individual tolerance for risk, and after educating yourself, borrow accordingly.

We'll have Jennifer's last piece of advice on Thursday.

Posted by Staci at 10:00 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Back to school, Banking, Federal loans, Financial aid, Financial education, Interest rates, International students, Lenders, Paying, Post-college, Preparing, Private loans, Student loans, Wells Fargo Bank

As we commemorate the second anniversary of the Student LoanDown — how can it be two years already? — I'm reminded of why we started blogging in the first place: To have a conversation about education financing.

Although we bloggers tell you about our experiences, it's really your experiences that resonate loudly and clearly with this community. And recently we were fortunate enough to get some great real-life experience from Jennifer, an American student about to begin graduate work at the the School of Oriental and African Studies  in London.

So for the next couple of days, I thought I'd share Jennifer's advice with all of you. It's a slightly different perspective from ours, which is what blogging's all about.

My parents were fantastic financial planners. They saved enough money to almost entirely pay for my entire undergraduate education, which was fortunate because they also made too much money for me to qualify for federal loans.

I did have to take out a couple of private education loans as an undergraduate for the summer course I took in Geneva and the month I spent doing volunteer work in Brazil. When I began to apply for loans, having already taken Intro to Microeconomics , I figured that the student loan market was probably homogenous because every bank offers student loans. How different can they be?

Plenty different, let me tell you. Thus, I would like to offer "The Three Mistakes I Made (or Almost Made) Financing My Education."

Mistake #1: Not Reading the Fine Print

Know the details of your loan. Before you sign the loan, read the fine print. I'll bet you're thinking, "Oh brilliant advice, everyone knows that you're supposed to read over the details of a loan before you sign it!" But seriously, how many people actually read the fine print, those tiny little details in seven-point font that appear in a new PDF window and go on for about six pages?

I didn't. Brilliant financial planner that I am, I was usually applying for loans after classes started, in an hour between classes, after I'd received the notice from Student Financial Services telling me that I owed the school money. I chose my lender based upon the lender my roommate at the time was using. I hate filling out loan applications because it feels as though the amount is always large and relatively abstract — while I theoretically know the value of $49,000 (the cost of 1 Masters of Science degree , also a year's salary, the cost of a luxury car, etc.), the reality of that large an amount of money remains relatively unfathomable. The possibility that I will ever earn a salary high enough to pay it back seems unreal. Even the meager $10,000s I needed sporadically as an undergrad felt relatively daunting and thus, I avoided loan applications until they became absolutely pressing.

The reality of the situation is that taking out loans requires comparative research. The first undergraduate loan I took out required repayment upon completion of my BA, regardless of whether or not I was continuing my education at the graduate level — something that I was in no position to do.

Select your private loan company carefully. Some loans allow repayment to begin before graduation, some charge an "origination fee," others do neither. It is a good idea to check the student loan options at the bank you keep a checking account with, as some banks offer post-graduation interest rate reductions for current customers. Consider opening a checking account with a bank just for the interest rate reduction; a lot of students relocate to a new city and have to open a checking account anyway, so check out which banks operate where you go to school. Many banks offer checking account applications over the internet, so you can apply before you leave home with plenty of time to apply for an education loan.

For a helpful guide to the different types of loans and their terms, check out Mapping Your Future , and for extra financial planning fun, click on the "play Show Me the Future" link on the left side of the screen.

Next week we'll be back with Parts 2 and 3 of Jennifer's financial aid life lessons. Stay tuned!

Posted by Staci at 03:00 PM |  Contact Staci |  Permalink  |  Comments (0)
Found in Back to school, Banking, Federal loans, Financial education, Interest rates, International students, Lenders, Paying, Post-college, Preparing, Private loans, Student loans, Wells Fargo Bank

To me, there's almost no bigger financial fear than the thought of bouncing a check or overdrawing an account. On top of potential embarrassment, there are also usually fees that go along with having insufficient funds. I normally try to keep plenty of money in my checking account to avoid any such concerns, but recently I've had more bills to pay than usual — I just finished grad school and began paying my student loans — so my checking account balance has gotten uncomfortably low. Adding to this stressful situation, my husband and I recently decided to move, which is an always unpleasant and expensive undertaking.

We spent a few weeks looking at apartments and finally found the one. It had the right mixture of price, amenities and location for our budget and lifestyle, so after speaking to the owner we were ready to submit an application.

As my fellow renters out there may be aware, most landlords require a security deposit to hold an apartment, and in our area that deposit was equal to an entire month's rent (that's a lot of money in Northern California!!) I had my checkbook with me and was halfway through writing out the check when the thought struck me: Do I have enough money in my checking account to clear this check?!

Just when I was about to panic, I remembered that I had signed up for Wells Fargo Mobile^SM Banking. so my balance and account activity are always at my fingertips. I pulled out my phone and texted "bal" (for balance) to "93557" (that's "WELLS" in mobile speak). Within 10 seconds — I kid you not — I had a text message response from Wells Fargo giving me my available balance.

Thankfully, I had plenty of money in my checking account to clear the check, so I let out a sigh of relief and finished filling it out.

I've played with the Wells Fargo Mobile Banking service a bunch since then, and I think it's actually pretty cool! There are a number of pieces of information you can get via text message, and there's a mobile browser option as well which lets you transfer money and find nearby Wells Fargo ATMs. I've used Mobile Banking everywhere I go — at the grocery store and even at the mall — to keep me on top of my money and under control.

BTW, I'm happy to report that we got the apartment thanks to the security deposit and my strong credit history...more on that topic later!

Mobile Banking works for me — does it fit into your lifestyle?

Posted by Kathy at 01:45 PM |  Contact Kathy |  Permalink  |  Comments (1)
Found in Checking, Fees, Housing, Mobile Banking, Money management, Moving, Online banking, Wells Fargo Bank

You're probably starting school soon, if you haven't already. So let us know how your funding came together for fall semester.

How are you paying for school?  Scholarships, loans, grants, Work-Study?  All of the above?

Did you hit any bumps on the road in figuring out your financing? Got any questions?

Let us know how it went!

Posted by Caroline at 11:35 AM |  Contact Caroline |  Permalink  |  Comments (2)
Found in Back to school, College, Federal loans, Grants, Money management, Paying, Private loans, Scholarships, Student loans, Tuition, Wells Fargo Bank, Work-study

A few weeks ago Staci blogged about back-to-school spending and how students and parents will spend less this year than in previous years. Sounds like everyone is trying to save money these days!

If you're among them, did you know that if you have a Visa card, you can get exclusive savings, tips, special discounts, and more on the Visa website? 

Just click on "Personal" and select "Visa Student" to find:

• Student savings, discounts, and offers from online places you love to shop

• Helpful credit management tips

• Advice on planning and living within a budget

Go check it out — you might find yourself a deal and learn something besides!

Posted by Dinna at 10:00 AM |  Contact Dinna |  Permalink  |  Comments (0)
Found in Back to school, Budgeting, College, Credit cards, Financial education, Money management, Parents, Saving, Shopping, Wells Fargo Bank

As I've mentioned, my stepdaughter is about to start her senior year in college. Boy, these last three years have gone by quickly!

I can't help but think back to the beginning of my senior year in college — not the best time for me. I was filled with panic, actually. I had just completed a time-consuming but unrewarding summer internship that left me feeling like I was completely unprepared to land a job after graduation.

Thinking back on it, there are some things I did and some things I wish I had done to have a more productive senior year in college. Here are just a few:

• Find a mentor . If you haven't already cultivated some relationships with professors or professionals in your field, it's not too late. Talk with your academic advisor, join a club related to your field, stay connected to coworkers from your internship — get creative about seeking out professionals who have achieved the kinds of things you'd like to in your life. They can help you get there.

• Work on your resume  early. Don't wait until May to get started on this document. Take the pressure off and start working on it this fall. This gives you time to get help fine-tuning it before your job-hunt starts in earnest in the spring.

• Try something new. This is your last chance to soak in all college has to offer. So don't get stuck in the same old rut. Go to a music performance, lecture or sporting event you've never attended before. Work out at the fitness center or join a club or activity you've never made time for in the past.

• Get a handle on your finances. Don't wait until you land your first job to start thinking about money management. Take a look at any debt you may have accumulated while in school (both in student loans and on your credit card) and start planning how you'll tackle it. (Will you make some student loan payments while in your grace period? Or will you try to whittle down your credit card debt before your student loan payments come due?)

• Make a plan A, B and C for post-graduation. I posted about this earlier. Be ready with a backup plan if your dream job doesn't come through. Set a time limit if you're moving back in with your parents. Anything to keep you moving forward as you step into your new life.

• Make some memories. Senior year can be an anxious time. Don't get so stressed that you forget to have fun! It's likely the last time you'll live in such close proximity to so many of your friends, so enjoy!

Posted by Caroline at 10:00 AM |  Contact Caroline |  Permalink  |  Comments (0)
Found in College, Debt, Financial education, Looking back, Money management, Post-college, Preparing, Remember, Student loans, Wells Fargo Bank

Since Caroline and Barbara have recently been extolling the virtues of frugal living, I thought I'd chime in and offer up a tip of my own: In this high speed internet age, you just might be able to survive without an expensive cable TV plan.

As crazy as it sounds, that's exactly what my husband and I have been doing for the past several months, and so far it's working out great! We recently downgraded our cable package from one of those 200+ channel options that was costing us around $80/month to a basic package — just the networks and a few other channels — for about $25/month. That's big-time savings for a small budget!

When we took stock of the channels that we actually watched, we found that there were only a handful that we regularly tuned into — and even then we were really focused on just a select few programs. One of my new favorite shows, Greek , is available via the ABC Family website so we can watch full episodes right there online. Furthermore, my husband got clued into the website www.hulu.com  and found that almost all of the shows we watch regularly are available (legally!) on that site. We hooked up our PC to the TV and viola! Television content delivered over the World Wide Web!

One disclaimer is that we're not HD junkies and can handle the occasional computer freeze-up which can happen when streaming video content online. For me, it's a small sacrifice to make for big monthly savings!

What do you think? Would this option work for you?

Posted by Kathy at 10:00 AM |  Contact Kathy |  Permalink  |  Comments (6)
Found in Budgeting, Financial education, Money management, Saving, Television shows, Wells Fargo Bank

I just got back from the airport. Unfortch, I was not returning from a fabulous trip to a tropical location . However I was buying a ticket to one...well, Florida's not quite the tropics, but I'm sure it will seem that way when leave the frozen tundra (a.k.a. South Dakota) to visit there in January.

I've decided to celebrate living a quarter century (a.k.a. my 25th birthday) surrounded by white sand while visiting a good friend in Daytona Beach . Luckily, certain airlines are offering great deals from Sioux Falls directly to the Orlando area, and my entire airfare is less than $300 — $282 to be exact.

However, while beginning to book my flight online, I found some interesting fine print on various fees. It turns out that by purchasing your flight online or over the phone you are charged a convenience fee for using that service — $11.50. That's a meal while I'm in Florida!

To be fair, this is a pretty common practice among online ticket purchases. Customers pay for the handiness of not having to leave their home to get their tickets. But for me, a trip to the airport is a mere five-minute jaunt from work. So I decided to go directly to the ticket office over my lunch hour and avoid a convenience fee. Subtract two quarters for the airport parking meter and I saved $11 on the trip! Woot!

On any purchase you make or agreement you enter into, it is very important to understand the fine print . It could end up saving you much more than $11.

Take student loans, for example: When you accept the loan, you get details on paying off their interest before it's added to the principal balance — also known as capitalization  — when you enter repayment. If you understand the impact of paying that accrued interest before capitalization, you could save hundreds of dollars over the life of your loan.

So read up!

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (1)
Found in Fees, Financial education, Money management, Paying, Preparing, Student loans, Travel, Wells Fargo Bank

Whether in a dorm room, apartment, or house, it's likely you'll be sharing space with someone when you head back to school. And when you're sharing space, you're also sharing expenses.

Chances are that you have some type of relationship with your roommate, and to make sure you are still on speaking terms after living together, it's best to have a financial plan for your shared expenses. Some people even go so far as to put it in writing through a roommate contract .

Here are some things to think about as you plan for shared costs:

• What's in whose name? (I feel like Abbott and Costello .) Try to get as many of your roommates' names on each of the bills (especially the lease). This way each of you is equally liable for the cost. For those bills that you can't put in multiple names, distribute the responsibility among your roommates so each person's name is on the line for something. This will help each person build a good payment history as well.

• How will you split costs? Decide whether you're going to split equally or based on usage and space. Does the person with the biggest bedroom have to pay more? Is the person who doesn't watch cable still responsible for paying part of that bill?

• What about bigger items? For big ticket items, like furniture, try to have each person contribute something that will be theirs to take when you part ways. If everyone went in on a couch, it'd be hard to split that 3 or 4 ways!

• What about the things everyone uses? When it comes to shared household items like light bulbs and paper towels, many roommates set up a schedule to rotate when each roommate buys something. Of course, you have to be conscious of whether or not it's an item that is used more by certain roommates. For example some grocery items, like milk, may not be consumed in equal quantities.

• When — and how — will bills get paid? Develop a routine for paying your bills. Put them in a specific place or have a message center with your roommates so you can see what bills are coming up and who you owe money to. Are you planning to write checks? Pay with electronic transfers? Use cash? Figure it out before the bills start coming in.

• How will you deal with financial conflicts? Be sure to consider possibilities of conflict about financial responsibilities. Is it OK for one roommate's significant other to do laundry at the house? Does that person become responsible for more of the utility bills?

Anyone out there have advice on splitting costs with roommates?

Posted by Barbara at 10:44 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Budgeting, Financial education, Housing, Money management, Paying, Preparing, Wells Fargo Bank

When you're choosing a roommate, there's a lot to think about — especially if you'll be living off-campus, where you have many more responsibilities than you do with on-campus housing.

One of the things to consider seriously is whether your financial lifestyles match.

What does that mean? Let's see...remember the early episode of Friends  where Monica, Ross and Chandler all had money to do things, and Joey, Rachel and Phoebe didn't? Well, it created a rift — similar to what can happen with roommates who aren't on the same page financially.

Here a few things to think about before you sign a lease with a new roomie:

• Do you agree about how much rent you can afford? This is basic, but you shouldn't even be apartment-hunting  with someone who's looking at housing that's out of your league. Let him find another roommate and you can use the pool and gym at their apartment complex when you visit.

• What about utilities? Remember, utilities go beyond water, lights and heat. What type of Internet service do you want to get? Will you be investing in cable or satellite television? Do you "need" TiVo^®?  Don't assume you both agree about what's necessary.

• How will you furnish the place? Are you both okay with mismatched hand-me-downs, or does one of you want to furnish the place from scratch? Can you afford whatever your future roomie is proposing?

• How about the day-to-day stuff? Make sure you discuss your approach to buying food and other household stuff. Don't wait until she eats your favorite organic pasta sauce to have this discussion. Make sure you agree about what to share the cost of, and what is "hands off." Find a fair way to split the community items. Otherwise you might always be the one buying the paper towels and dishwasher soap.

If you've already been through a financial mismatch with a roommate, got any stories to share?

Posted by Caroline at 10:08 AM |  Contact Caroline |  Permalink  |  Comments (5)
Found in Budgeting, College, Financial education, Graduate school, Housing, Money management, Moving, Paying, Post-college, Preparing, Wells Fargo Bank

Editor's Note: It's inevitable, Student LoanDown readers...school is about to start! In the next three posts, Barbara and Caroline — who have many years of roommate experience under their belts — share some tips on how to make dorm and roommate living a little more chic, comfortable, and fiscally responsible.

At back-to-school time, I usually have mixed emotions. Much like Staci, I love seeing the new school supplies in the aisles of the big-box stores. But I'm less excited to start seeing ads for an array of color-coordinated dorm accessories.

Room decorations and necessities can be a big clash between roommates. Have you had the talk with your roommate about what you need/want in your room? Make sure you consider your budget when you do!

You want to make your dorm room a comfortable, functional space. However, especially in these tough times, you don't need to break the bank to do it. After all, once you factor in studying in the library, participating in clubs, socializing with other students, etc., you might not even spend that much time there!

I'm a big believer in budget solutions to create what you need. (I heart watching Decorating Cents on HGTV and perusing thrift stores  and garage sales...including Staci's free sale.) So, here are some ideas to keep the dorm room essential costs down.

• Furniture — While coordinating papasan chairs may seem like a necessity, you can spice up a dorm just as easily by covering a second-hand love seat or recliner with a tapestry or even an extra bed sheet. Going frugal on furnishings doesn't mean compromising style. You can always bring in a funky retro item or personalize something with your own taste.

• Accessories — Just like with furniture, there's no need to buy all new accessories. Here's a great place to show a little ingenuity with some do-it-yourself projects. Check out DIY sites like Instructables  for ideas.

• Appliances — Instead of getting brand-new gadgets for your room, check with relatives or at garage sales to score inexpensive (or free!) necessities like a toaster, microwave, etc. Also, make sure you know if your dorm has a kitchen available for you, so you don't buy something you may already have access to.

• Space and storage solutions — If space is an issue in your room (which, let's face it, is the case at most colleges) check with older students to see if they have any lofts, shelving, or organizing units they are trying to get rid of. Students moving out of the dorms might have already created a solution that could help you.

What other tips do you have for furnishing your dorm room the frugal way?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Back to school, Budgeting, College, Money management, Preparing, Saving, Shopping, Wells Fargo Bank

In this last month before school starts, you've probably got a long list of things that you need to do before heading off to college — especially if it's your freshman year. While you're making preparations, be sure you cover all the basics on your financial to-do list.

Don't have one? Luckily, I've made a handy checklist of things to help get your finances organized before you head off on your own.

1. Make sure your college financing is in order. Taking out student loans? Be sure you have contact information for your lender and your school's financial aid office so you can work with them to ensure you've got your tuition bill covered.

2. Set up a bank account. If you don't already have one, be sure you've got a savings account and an ATM card. If this is your first time owning an ATM card, be sure you know how to use it to make both deposits and withdrawals.

3. Get a credit card   for emergencies. This is nice to have as a backup plan — especially if you're taking a car to college. But be sure you understand the interest rate and how it's calculated before you ever use it.

4. Create a budget. Remember that this will be a working document that will be adjusted as you learn more about how you spend money when you're on your own. But for now, make a list of all the expenses you can anticipate at this point, as well as the income you plan to be generating.

5. Get your financial information organized. Buy a flexible file folder and keep track of any financial papers that you receive in hard copy (statements from your bank, student loan papers, etc.).

6. Talk to your parents  . Visit with your parents about money and expectations. Share your budget with them. (See item #4!) Make sure you understand what expenses they expect you to cover, and what they will pay.

7. Make a bill-paying plan. If you're going to start receiving your own bills for the first time, make a plan to ensure that they get paid on time. Will you pay them online or by check? Will you pay them as they come in, or set up a couple times a month to get them all paid at once?

This list should get you started. Now, what other financial "to-do's" do you have before college?

Posted by Caroline at 10:00 AM |  Contact Caroline |  Permalink  |  Comments (0)
Found in Back to school, Budgeting, College, Credit cards, Debit cards, Federal loans, Financial aid, Financial education, Parents, Preparing, Student loans, Tuition, Wells Fargo Bank

These days you can't open a newspaper, click on an online news site, or turn on the television without being bombarded by reports on the state of the economy. I'm not sure if it's as bad as the news reports make it out to be (is it?), but I've gotten to the point where I have to tune it out. If I don't, I start to panic.

Even with the news spouting doom and gloom, time marches on. And now that it's August, you may be getting ready to go back to school or head off for college for the first time. Either way, the gear to get you settled comfortably in your dorm room — the laptop, the mini-fridge, the coordinated bedding with twin extra-long sheets — doesn't come cheap. Of course, these are extras that come after you've already paid for the essentials: tuition, room and board, and textbooks.

Recently the National Retail Federation released their annual survey on back-to-college spending , which — like everything else — has been impacted by economic issues. According to their figures, back-to-college consumer spending will drop seven percent this year, to just under $600.

But parents have the real say in these matters, since they're usually the ones paying for it. Earlier this week, I was chatting with a co-worker who is about to send his eldest daughter off to college in Minnesota. He'd found a carpet remnant for her dorm room at a home improvement store for a song — but it took some convincing before his daughter agreed to it. Ultimately she, like many college freshmen, knows that beggars can't be choosers! 

As you ready yourself for college, what adjustments have you made in your spending? Are you finding yourself being more frugal, or aren't you worrying about it?

Posted by Staci at 10:55 AM |  Contact Staci |  Permalink  |  Comments (1)
Found in Back to school, College, Money management, Parents, Paying, Shopping, Wells Fargo Bank

Think quick: How much loan money would you be responsible for paying if you graduated today?

Don't know? Don't worry; you're not alone. It's not uncommon for students to put loans out of mind until repayment. Even those who do know that they'll owe X amount once they graduate usually don't know what that means.

But since I've got you thinking about it, I challenge you to stray from the norm of being oblivious of your student loan obligations until repayment begins.

Here's a new way of thinking about borrowing: for the loans you already have (or those you are about to take out): Estimate how much your monthly obligation will be for that debt. Use a repayment calculator like these ones for Federal Stafford loans and private loans. Then, keep a running tab of what your total student loan debt will require each month.

I'll give you an example. Say I have $12,000 in Federal Stafford loans at a fixed rate of 6.8% and $10,000 in private loans at a variable rate of 7%, each with a 10-year repayment period. Using the calculators I find out that each month I'll be required to make minimum payments of $138 and $116.11, respectively. So once I graduate, I know that I'll have to budget at least $254.11 of my monthly income to my student loans.

Of course, since my private loan rate is variable, this amount could fluctuate.

By taking an approach like this, you'll know exactly what you're on the line for, and how much additional debt you'll be able to take on without feeling stretched each month. Ideally, your monthly student loan payments should not exceed 10-15% of your monthly income .

So in my above example, if my projected monthly pay will be $2,000, it may be a better decision to work more hours at a part-time job to help pay for my education so I can borrow less in the future.

You tell me: Is it easier to understand your student loan debt when think of it in monthly payments?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (1)
Found in Budgeting, College, Federal loans, Financial education, Interest rates, Money management, Paying, Preparing, Private loans, Student loans, Wells Fargo Bank

This weekend is our annual "Sales Tax-Free Weekend"  here in Iowa. Is yours one of the many states  that offers this special shopping weekend?

In a year when practically everyone is trying to trim their budget, this sounds like a great deal. But personally, I avoid the "tax-free" weekend like the plague. I shopped on that day a couple years ago, and the mall was more ridiculously crowded than it is two days before Christmas. Not my idea of fun.

Plus, I can't get around the fact that the savings of 6-7% that you get with a sales-tax holiday isn't all that much of a savings. After all, most clothing and shoes go on sale for 15-25% off or more at some point. If you're only saving the sales tax, you're better off waiting for a real sale, when the markdowns will be higher.

But there is something to be said fo