Personal Finance

IMPORTANT - If you receive a financial aid reimbursement

If you receive financial aid and receive money from Pierpont after your tuition and fees are paid (a reimbursement), be careful about spending it. 

There might be more expenses for required books or other items in classes in upcoming semesters that you are not aware of. 

If you pay for books or items at Pierpont's Campus Store after you receive a reimbursement, the amount might be put onto your Pierpont account, and you might have to pay the amount back to Pierpont to prevent having a hold on your account, which may prevent registering for an upcoming semester.

Discuss who is paying, expected expenses, financial aid,  and perhaps opening a new credit card or checking account.

Credit card companies are notorious for offering freebies (like t-shirts or Frisbees) and incentives (like low interest rates the first year) to students to get them to sign up.  

It is to their benefit, not yours, for you to keep a balance, which costs you monthly interest (like a loan) and possible fees.

The real cost of credit cards

A credit card sounds like a great way to make a large purchase. 

You can purchase nice things and pay for them in small amounts monthly rather than having to save and pay all at once. Unfortunately, the interest rate can change the payoff amount drastically.  For example:

A credit card with an Annual Percentage Rate (APR) -interest- of 21% that has a $3,000 balance will result in you paying $5,200 over almost six years! 

Is that really a good choice?

Using credit cards wisely

Do not use credit cards on things you can not afford.

Credit cards are a useful tool to consolidate spending, protect your identity, and build credit for future large purchases. They are not a resource for buying things you cannot afford. 

Only use the card for items you are able to pay off fully and on time over one or two months.  This will help you establish a positive credit score for future purchases like cars or a house.

Jobs and Internships & Credit Ratings

Some jobs and internships require a background check, which is a review of a potential employee's criminal, commercial, and financial records.  If your credit score is low, it could affect a future employer's decision of offering you a job or internship.   

Get in the habit of regularly checking your bank statement and credit card balances to make sure that there are no mistakes or problems.

Monitor your spending. Determine needs and wants, and decide which non-essentials you can do without.

Be Flexible.

A budget guides your financial life, but don’t treat it as if it’s set-in-stone. Every student’s budget is bound to change, just like life changes.

Some months may come with more expenses — like at the beginning of the semester when you have classes to pay for and books to purchase. Moving to a new apartment with rent and utility deposits or having your roommate drop out of school mid-semester could shake up your cost of living.

The summer months might be flush with extra income if you land a paid internship or seasonal job — or you could find yourself struggling to pay for summer courses that your financial aid package didn’t cover.

All of this is to say, you will probably need to regularly adjust your budget.

Print the templates below to create your own weekly & monthly budgets!

• Find a roommate to share rent costs

• Compare cell phone service providers

• See if you qualify for lower rates on services - utilities, rent, etc.

• Cook at home, check local food banks, and shop at discount grocery stores. Buy in bulk and freeze food.

• Shop for clothing at thrift stores 

• Give up unhealthy habits like smoking 

• DIY & barter - the internet is your friend! Google home projects or swap loaves of bread for help replacing a ceiling light

• Any time you spend less than your allotted budget, add that extra money to a savings fund

To save money, see if you can buy used textbooks or rent them. Sometimes you can find cheaper textbooks at various online resources. Maybe you know a student who took the class before you and is willing to loan you her/his textbook. Check with your instructor for more options.