Calling all university freshmen: Finance tips from someone who's been there

Many college students come out of college with mountains of debt and a low credit score. If you want independence from your parents, reconsider if that includes independence from sound advice on finances and other important life matters. This advice can save you from years of payments to creditors and unnecessary dings on your credit score. Here's what I would tell a freshman loved one about saving money and credit, from my own experience:

1. Budget.

More than two-thirds of recent graduates have student loan debt at graduation, according to Consumer Reports. Make a budget and stick to it. Sure, you will be tempted to blow it off and go party with no regard for the bills you have to pay later, but resist that temptation. Think of low-budget, affordable ways to have fun with your friends, like movie nights at home or making a meal together. You can find great budgeting tips from financial expert Dave Ramsey or check into the student organizations on campus; they usually offer budgeting classes.

2. Skip the Credit Cards.

Credit cards are easily accessible for students, and there are many lenders both on-campus and off that are just waiting to extend credit to you. This may seem like an easy way to get the things you want without waiting, but don't fall into this trap. Eventually, you have to pay that money back. And having a lot of credit card debt can lower your credit score and make it more difficult to get the things you need later. If you must have a credit card, try to find one with a low interest rate and reserve it for emergencies.

3. Cut Student Loan Debt.

Many students take out the maximum amount in student loans, whether they need it or not. They end up using the excess for frivolous purchases or just daily spending money. The average amount of student debt in Canada is $28,000, and almost 60 percent of students graduate with some type of debt, according to the Public Health Agency of Canada. Again, these funds have to be paid back and can take years to pay off. Only take what you have to have to pay for your education.

4. Work Part-Time.

Pick up a part-time job for help covering your living expenses and extra spending money. This will help you cut down on debt and have money for what you need. No one wants to be a broke student, sitting by watching their friends having fun. Just working a few hours a week can mean the difference between being left out of events or being the life of the party. Look into local restaurants, shops and eateries on campus, or even look into pizza delivery if you have your own vehicle.

One way to earn extra money and jump start your CV is to get a job in the field you hope to enter once you graduate. For example, if you're going to school to be a paralegal, see if any local law offices are hiring for data entry clerks or court runners. Paid internships help you get valuable experience and extra spending money, too.

5. Buy Textbooks Online.

This is an area where you can find huge savings. Purchasing textbooks from your university is a major expense; most students spend $800 to $1,000 per year on textbooks, the Financial Consumer Agency of Canada reports. Stop by the bookstore at your university, copy the ISBN numbers off the books you need and shop online for a better deal. Many times you can get these books for pennies on the dollar. Just be sure you get the correct edition of the required text so you'll have the information you need to pass the course.

Your university years should be the best of your life. Take care of your finances now to help ensure that these years don't leave a negative impact for years to come.

Taken from: Guest Post (article, By Norman Randal), Google (images).