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Many College Students desperately need to learn money skills. This issue not only causes them to start their adult lives in a huge financial hole, but it also results in huge problems for their parents.

The list below represents typical quotes from college students on the topic of money matters. A basic understanding of money management is a critical part of the daily responsibilities of college and adult life. Although many of the statements seem comical to experienced adults, they illustrate why so many young people get into financial trouble. We suggest parents spend time teaching their students money skills, or provide them with a quick money management course as the one recommended below:

Money issues are probably the top reason students drop out of college. We have created a crash course in money management skills at MoneyManagement101.org – this self study course clearly explains essential money skills that college students need to understand.

Quote examples of College Students:
-Spending $1,000 using my new credit card is way cheaper than writing a $1,000 check, because I only have to pay back $20 per month.
-The bank must be wrong, my account can’t be overdrawn, I still have 10 checks left in my checkbook
-I think someone’s ripping me off on my first paycheck, who are these people FICA and FUTA, and why are they getting part of my paycheck
-I just got my first credit card, I love it, when this one’s full, I am going to apply for a couple more.
-I am already getting credit card applications in the mail, but my mom is too uptight to let me have one. Once I move out, I’m going to get a bunch of cards, and finally get some cool stuff.
-I am going to work 25 hours a week this summer and will make $8 an hour. I’ll be able to afford that new SUV, and still save tons of cash for college tuition.
-I make $80 a week at my part time job and buy lots of awesome stuff. My parents both work full time, but they’re so cheap, they never buy anything.
-Having a ton of student loans doesn’t really matter; by the time I have to pay them back, I’ll be making the big bucks.
-I don’t worry about filling out my income taxes, my dad always ends up doing it for me, I guess he likes doing it. He’s kind of weird that way.
– I heard that collection agencies can’t bother you until you’re out of college.
– If you never leave college, you never have to pay back your student loans.

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Below are ten important benefits college students and other young adults will gain if they create a personal monthly budget worksheet. By the way, if you need assistance creating a monthly budget, we have created an easy to follow budget template as part of our Money Skills DVD.

A Budget…..

1. … creates a useful historical record of your spending habits from which you can identify favorable and unfavorable trends.

2. … can help confirm whether or not you will be able to pay your bills on time or be forced to miss a payment.

3. … can be a useful tool for maintaining a solid credit rating (see bill paying above).

4. … can clearly illustrate your inflows and outflows of funds.

5. … provides a useful tool to help control day-to-day expenses.

6. … helps you save for big ticket items.

7. … will help you develop spending discipline and avoid wasteful spending.

8. … helps you establish a cushion for unexpected or emergency expenses.

9. … helps you prioritize what you’re choosing to spend your money on and can highlight expenses that you should attempt to reduce.

10. … helps identify if you need to adjust your income level (i.e. work more hours) to adequately cover your expenses.

As mentioned above, if you need assistance creating a personal budget, or just need someone to clearly explain basic money skills, please consider getting our Money Skills DVD. It is specifically designed for college students and other young adults.

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More prospective employers are doing credit checks on job applicants. Many employers believe if someone can’t manage their bills, they probably won’t be well organized on the job either.
You may feel that this is an unfair practice, however that fact remains that many employers will pass you over if you have a poor credit history.

Its tough enough to get hired in this difficult job market. It’s hard to stay on top of your bills if you’re between jobs, but try your best to stay current to keep your credit clean.

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MoneyManagement101.org has released its Money Management Skills DVD. This 1 hour DVD is designed to quickly teach college age young adults essential money skills.

Samples of Topics Covered in the DVD:
How to avoid credit card problems
Peer pressure and avoiding excessive spending
Common money traps that young adults fall into
Living within your means and budgeting
How not to get buried in debt
Managing your bills and personal cash flow
How to stay focused and financially on track at college
How to Protect yourself from ID theft, fraud and rip-offs
Plus many tips to avoid problems

The DVD is available at MoneyManagement101.com

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A recent feature article in the USA Today talked about how many young professional athletes end up in personal bankruptcy. Many times while they are still in their playing days and make millions. Typically, despite large incomes these players ended up spending more than they should have or took out excessive loans.
One NFL player, who made over $10 million but ended up in bankruptcy said that no one ever teaches them personal finance or money skills in college (or anywhere else).

NFL players and money problems

Whether you make millions or limited income, it is crucial to learn personal money management skills.

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This is a guest post from Kevin of CreditShout.com

Cash back credit cards reward you by paying you a percentage of your spending. This can be a wonderful way to earn rewards on your day-to-day purchases and spending. Even better, with cash back, you can use the money for anything you’d like. The trick to cash back cards, however, is to use them wisely so you can maximize the benefits available to you.. Here are some tips for excelling at earning cash back on your credit cards.

Pick The Best Card For You

Some cards offer a flat percentage of cash back- usually around 1 percent- regardless of the type of purchase. However, plenty of other cards offer additional or bonus cash back in certain categories or if your spending exceeds a certain level. For example, there are cards that offer you bonus cash back for groceries or gas and car repairs. Other cards boost the amount of cash back you earn after you cross a certain spending threshold.

When shopping around for cash back credit cards, make sure you select the one that best matches your spending patterns. If you commute using mass transit, avoid cards that reward gas purchases (gas credit cards actually usually pay out cash back rewards), while if you aren’t a cook and primarily eat out, opt for a card that rewards that behavior instead of giving you a bonus at the grocery store.

When comparing cards, don’t be so swayed by the cash back deal that you forget the other terms of the agreement. If there is an annual fee, make sure the rewards program will allow you to earn more cash than cards that charge no fee for being a customer. If the best cash back card carries a high interest rate, consider whether you will really be able to pay off your card in full each month or whether the additional interest will offset any gain from the rewards.

Charge Everything (But Remember To Pay Off Your Balance in Full Each Month)

The more you put on your card, the more cash back you will earn. See if your monthly bills can be paid via credit card. Most cellular telephone bills can be paid by card, and you may even be able to pay your rent or utility bills using your charge. In fact, some companies will allow you to set up automatic payments right from your card. Any necessary monthly expenses you incur that can go on your card will result in free cash back that you might not otherwise have received.

Likewise, if you go out to dinner with a friend and plan to split the check, put the whole thing on your card and get the cash from your friend. If you have work expenses that are reimbursed, charge those too. Every extra little bit helps when it comes to earning rewards.

It’s very important regardless of what card your using to remember to pay off your balance in full each month! Cash back credit cards only make sense if you aren’t paying interest on the card, which can be avoided by never carrying a balance.

Understand the Rules

Some credit card companies require you to expressly claim your cash back bonus by requesting they send a check. Others will automatically apply the bonus as a statement credit. Make sure you completely understand the rules to your program so you don’t accidentally lose out on cash that is owed to you.

Check Your Statements

While creditors don’t often make mistakes, you’ll want to check your statement each month to make sure you got all the cash back owed to you. This is especially important if you signed up for a card that offered a special cash back promotion for a limited time. If the promotion wasn’t applied to the card correctly, you could miss out on the bonus cash owed to you.

Each month, compare your spending to the amount of cash back you earned to make sure you were paid your dues. After all, you went to all the trouble to choose the right card and charge as much as you can on it, so you want to make sure that effort paid off.

Avoid Fees

Interest charges, late fees or over-the-limit penalties can all negate any value you get from using a cash back card. Strive to pay off your balance in full and on time every month, and make sure you don’t go over your line-of-credit. Not only will practicing this responsible behavior help you maximize your cash back, but it will also protect your credit score so you can qualify for the best credit card deals.

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Effective February 22, 2010 credit card companies will be required to follow the guidelines established by the Credit Card Act of 2009

Below is a brief summary of some of the key changes that will impact college students and their parents.

    Restrictions on Marketing to College Students:

In exchange for applying for credit, card companies are not permitted to give gifts (i.e. T-shirts, pizzas, mugs, etc) to college students on or near campus grounds

    Increased Parental Involvement:

Cards cannot be given to those under 21 unless they get an adult co-signer, 
OR they provide proof that they have the ability (i.e. proof of sufficient income) to repay the debt.

Card companies cannot send prescreened card offers to anyone under 21, unless they have agreed to get card offers.

Card companies cannot increase the credit limit on co-signed credit cards held by college students under 21 unless they have gotten written permission from the co-signer.

    Limits on penalties and fees

Over limit fees may not be charged unless the card user has provided permission for transaction over their credit limit.

    Increased Disclosures:

Card companies will now be required to disclose the following on the card statement:

-the length of time, and the total dollar amount of interest that would be needed to repay the card balance, if only the minimum required monthly payment.

-the monthly payment amount needed to pay off the the total balance in 36 months
– a phone number to call for credit counseling services.

Card statements need to clearly disclose the required due date, late payment charge, and any late payment penalty rate.

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College Students and Parents Affected by New Federal (Credit Card) Laws
What You Need to Know

Most American college students use credit cards. However, many young people don’t always handle them properly, and often face late fees, increased rates, and high balances. Many of these problems are due to a lack of knowledge, or simply not handling cards responsibly. Although many of these problems are the result of bad habits of young adults, consumer groups believe many of these issues are due to questionable practices of credit card companies. To help address these issues, Congress passed new laws to restrict the ways card companies handle credit card arrangements with consumers.

Effective February 22, 2010, credit card companies will be required to follow the guidelines established by the Credit Card Act of 2009

The changes generally require credit card companies:
-to increase disclosures to card holders
-to provide more lead time or advance notice when changing terms
-to limit their marketing activities on or near college campuses
-to require increased parental involvement in credit card activities of individuals under 21.

More detail of these laws and other money issues affecting young adults and their parents are available on the educational website MoneyManagement101.org
For More Details see specific post http://moneymanagement101.org/important-cred…s-need-to-know/

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Stay Tuned for important information about money topics and issues affecting young adults and their parents.