NEW YORK – August 28, 2021 – (Newswire.com)
As a student, you often incur debt during your studies. And for many students, even working part-time is not an option. This means that financial management is vital. And avoiding paying fees can go a long way in ensuring you have enough money to survive the school years. Here’s what you need to know about how to effectively manage your finances as a student without paying fees.
Avoid credit card fees
Student credit cards can be a useful tool for students who want to start building credit. But cards that charge excessive annual, late, or foreign transaction fees can end up costing more than they’re worth. So, when considering choosing a student credit card, go for a card that:
- Is free of charge: You’ll definitely want to avoid a card that requires an annual fee, but also look for cards that don’t have an overseas transaction fee if you’re planning on going overseas.
- Offers rewards you’ll actually use: Credit cards can offer impressive benefits for the expenses you already have. Make sure you choose a card that offers a convenient reward like cash back or statement credit instead of earning travel points if you don’t plan to travel in the next few years.
- Reports to the 3 credit bureaus: Since you are building credit that will impact you for years to come, you’ll want to make sure that your responsible financial management is reported to the 3 major credit bureaus: Experian, Equifax, and TransUnion.
Avoid bank account fees
Opening a checking account at a bank is one of the first steps in managing your finances. And many student bank accounts offer low minimum deposits and exemption fees during your college days. However, to avoid unnecessary bank account charges, it is best to:
- Choose a bank account designed for students: Student chequing accounts often offer benefits such as no monthly fees or transfer fees. Additionally, these accounts are a crucial part of managing finances as you can set up bill payment or direct deposit right from your checking account.
- Open a current and savings account with your bank: Keeping a checking account and a daily savings account at the same bank allows you to quickly transfer funds from one to the other as needed to cover an expense. Additionally, some banks may offer an option to set up an automatic transfer from savings to verification if you don’t have enough funds to cover a transaction.
- Create appropriate account notifications: With online banking, you can receive alerts directly to your mobile device when you have made a purchase or when your balance drops below a certain threshold. Set up alerts to give you time to transfer funds if needed before you are charged a fee.
Avoid student loan fees
According to recent data from Student Loan Hero, 56% of graduate students graduate through student loans. And while most loans don’t require repayment until graduation, there are ways to protect yourself against future fees when you enroll. Federal student loan rules and fees are often locked in and cannot be changed. But private lenders have more flexibility, and some don’t even charge late fees.
When you sign up for a student loan, make sure:
- You have a plan in place for making payments after graduation: Making payments on time is the best way to eliminate fees. Calculate your student loan repayment in advance so you know what to expect when you land your first job.
- You know the repayment plan options available: Especially for federal student loans, there are repayment plans that will reduce your payments based on occupation, income, and family size. Make sure you know what help you’re eligible for if you’re worried about making your payments on time.
The bottom line
Many financial institutions make money from students in the form of fees. But smart financial management means you can avoid charges on critical financial accounts like credit cards, bank accounts, and loans. Understanding the fee structures and amounts before opening any type of financial account means you are in control of your financial future.
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How to manage your finances as a student without paying fees