This student financial literacy moment is brought to you by iGrad.com, an industry leader in providing solid financial advice and tools for college students.

We make resolutions as initiatives to work towards self-improvement, with the intent of fixing the problematic areas in our lives. For many college students, this problem area is the state of their finances; most of them want to resolve their issue, but don’t know what is required to do so. Well here goes: the first step is to make a resolution based on your areas of focus; the second step is to follow through with your resolution, which is where we come in to guide you. In order to successfully navigate your sojourn to financial self-improvement, follow these tips and guidelines to make sure that once you set out, you continue down the right road and attain your end goal.

Set a Goal (And Know Why You Want it)
It is not uncommon for the enthusiasm that once fueled your motivation for financial self-improvement to fizzle out over time, but there is a strategy to fight the fizzle; instead of simply setting a goal for yourself as a means to an end, you should really understand your motivation for setting this goal.

In the first steps of goal-setting, knowing why you want this one thing so badly is even more important than knowing exactly how you will get it. Do you want to increase your low credit score within the next year? Why? Because it will allow you to sign a rental lease on a new apartment? Because it will improve your job prospects for a promotion or new position? Because it will help you become a better candidate for a much needed school loan? All of these are significant motivating factors for wanting to increase your credit score. Once you understand your own reasons, it will be easier to formulate a strategy for achieving your goal and the probability of success will be higher.

Create an Organization System
If you really want to be successful in achieving financial health you must incorporate some organization into your life. Many people who’ve found themselves in bad financial shape claim to not have realized the extent of their troubles until it had gotten completely out of control; this is due in part to a poor money management system. There is simply too much paperwork involved for you to not have some sort of organizational strategy in place. 

You should keep your important documents (social security card, marriage or birth certificate, passport) separated from the paperwork you reference on a regular basis. The former should be kept in a secure lock box or cabinet; the latter, which would likely include bank or utility statements, receipts, investments, credit reports, loan information, and budget sheets, should be kept in a binder with categorized sections for each respective type of paperwork. By arranging all of your paperwork and important documents in a systematized filing system you will be much more equipped to stay on top of your finances.

Use Your Banks Financial Tools and Resources
Banks offer some great resources to help its clients manage their money better. The advent of internet technology has made online banking a convenient, useful tool for consumers who now have much more accessibility to their banking activity. For example, you can view your statement online at any time, making it easier to monitor your spending and keep tabs on your budget. 

Another useful feature is automatic account transfers, which are helpful if you want to establish a savings fund. Once you’ve set up a prearranged amount of money you would like to be moved into your savings account, you are no longer accountable for remembering to set aside money each month; the bank will automatically take care of it for you. In some cases, it is also possible to set up an automatic transfer from your paycheck into your savings account. (Ask your employer if this option is available.)

Start Sensibly Saving (For Real, This Time)

There are a few ways to get started doing this.

First, use small change to create big change. Literally. Empty out your pockets or purse at the end of each day and stash your loose change in an empty jar. Once the jar has reached capacity, take it to your bank and deposit it in your savings account. You would be surprised at how much it will add up to—think a few hundred dollars each time.

Second, set up the auto transfer feature for your bank account that we mentioned earlier. It is an easy, long-term, low-impact way to start a savings fund. Putting just 10% aside each month will go a long way.

Third, rethink any surplus. If you have extra money coming in from somewhere—be it a raise, a bonus, a tax return, some rebates, anything at all—resist the impulse to splurge on the frivolous. Instead of treating yourself now when you might not need it, elect to treat your future self, who might actually need the money for something important down the road, and put the money directly into your savings or emergency fund.

Improve Your Credit
The significance of your credit score cannot be stressed enough. This number is essentially the determinate for everything important in your life: it affects your chances of getting hired, your ability to rent a home, and the price of your loans, mortgage and insurance rates. To stay on top of your credit (or to rectify a current delinquent rating), it is imperative that you submit regular, punctual credit card payments and that you disassociate with any activity that could otherwise compromise you’re credibility.

Take advantage of your free annual credit report which you can get at AnnualCreditReport.com. By law, you’re entitled to one free copy of your credit report every 12 months from each credit bureau: Equifax, Experian and TransUnion. Look closely for any errors that could be negatively impacting your score; if you find one, immediately inform the reporting bureau.

A college degree is only beneficial if it leads to a job after graduation. Whether you receive an English degree or a physics degree, you face the daunting task of searching and applying for a job when you graduate from college. While the job search process may seem daunting, there are steps you can take to make finding a job in your degree field much easier. You have put in the hard to work to earn the degree, so it is time to make your degree work for you.

Do not wait until after you graduate to start the job search process. Take advantage of the career office at your college or university to find potential business contacts in your field, create a stellar resume and participate in mock interviews to prepare you for the job market. Contact members of your school’s alumni association who currently work in your desired field and ask for their advice on finding a job in the field.

Build up as much experience as you can before beginning your job search. Take an unpaid internship that relates to your future career. Volunteer with a non-profit organization that could provide you with valuable insight into your future career field. Read as many books as possible written by some of the top individuals in your desired career field. Become proficient using as many computer programs or specialized software programs as possible and include those skills on your resume to set you apart from other employees.

Promote yourself as the ideal candidate for the job. Create detailed profiles on popular social networking websites that make you appear to be a professional and someone who is more than qualified for a job in your field. Create a list of companies you would like to work for and get to know these companies inside and out by talking to former and current employees and reading company profiles. Use any connections you have to get interviews or have someone put in a good word for you.

Network every chance you get. Whether you’re at a job fair or standing in line at the gas station, always keep your eyes open for a chance to network. Ask for business cards, and make sure that people you talk to know your skill set and qualifications. With all of the changes that have happened in the job market over the last few years, it is important that you use every opportunity at your disposal to make an impression on potential employers; one thing that will always catch their eye and secure a place for you in their memory is an obvious desire to put your skills to use.

Getting a job in your field is not as simple as filling out applications and sitting through interviews. To make your degree work for you, you have to put in some work. By taking the steps to position yourself as the ideal job candidate and network with those in your desired industry, you will not have to settle for less than the job of your dreams.

Today’s guest article was provided by Joseph Baker.

The cost of college tuition has been increasing dramatically over the years — greater than inflation in many instances. Some schools have adopted double digit increases, others try to keep the impact on families at a minimum, while some have taken the Muskingum approach and slashed tuition prices.

Regardless of the various approaches to tuition pricing, the investment in a college education can easily be the most expensive purchase a family can make — with the exception of their home. However, from what I can see with the rising cost of college, it may be possible for that education investment to surpass the purchase price of even a modest home…

Since we insure our homes, would it not make sense for us to want to obtain some sort of protection on our college investment?

Sallie Mae, the nation’s No. 1 financial services company specializing in higher education, believes that a college education is worth insuring. They believe in it so much, they are rolling out a brand new division, Sallie Mae Insurance Services, to offer their services and products to students nationwide.

I recently had the opportunity to sit down with William A. Suneson AAI, Co-Founder and President of Sallie Mae Insurance Services, and learn a little more about the various insurance products they are offering to families.

The following is our Q & A session. I hope you find it helpful as you contemplate protecting your educational investment.

CheapScholar: A lot of families have never heard about Tuition Insurance. Can you provide an explanation of how Tuition Insurance works and why it might be a good option for students/families?

Suneson: After purchasing a home, paying for college is often times the second largest expense for families creating a growing financial risk.  Additionally, many colleges do not provide a refund after the 4th week of classes for medical withdrawals and only provide partial refunds up to that point.  Tuition refund insurance provides families with an option to protect their investment in college should a student be forced to withdraw for medical reasons.  Essentially the coverage provides reimbursement up to the policy limits for tuition, fees, room/board and other related expenses upon the verified medical withdrawal of the student.

CheapScholar: What kind of premium/expense (approx) can a family expect to invest in this type of coverage?

Suneson: The premium to purchase tuition refund insurance varies by the amount of coverage a student or family selects based on their cost of attendance, out of pocket exposure and risk tolerance.  Through school sponsored plans, our policy premiums range  from $186 for $10,000 of annual coverage up to $486 for $50,000 of annual coverage.

CheapScholar: Tuition Refund Insurance has been in existence on campuses since the 1930’s. What does Sallie Mae bring to the table to help distinguish their newly introduced tuition insurance product from others.

Suneson: Yes, tuition refund insurance has been available for decades but historically only to students attending private institutions or private K-12 schools.  With the growing cost of paying for college, Sallie Mae Insurance Services has launched a modern form of tuition protection that allows students from any accredited college or university to purchase a policy based on their individual needs rather than a single amount offered by select institutions.  In addition to coverage flexibility, our product provides 100% percent reimbursement for mental health related claims rather than the 60% offered in the past by other plans.

Another distinguishing factor and clear advantage of our tuition insurance product is the inclusion of the Student Protection Plan with every policy sold.  This comprehensive bundle of benefits has been specifically designed for college students and includes Identity Theft Protection, Computer Repair Coverage, Emergency Medical Evacuation and Extended Warranty coverage.

CheapScholar: College students have a number of insurance needs during their educational career. Does Sallie Mae plan on rolling out other insurance products and services that may benefit these students in coverage and cost?

Suneson: Yes, Sallie Mae Insurance Services recently launched a suite of products on www.salliemae.com/insurance including renters insurance, travel insurance, student health insurance and other products for young adults post college.  We also have a number of products in development including tuition payment insurance designed to help tuition payers (parents) maintain their payments should something unforeseen happen to them.

CheapScholar: Bill, is there anything I didn’t cover above that you would like to highlight regarding this new venture by Sallie Mae?

Suneson: Doug, Thank you for this opportunity and for bringing awareness to the risks students and their families face during this life stage.  For over 40 years, Sallie Mae has been helping families save and pay for college so protecting that investment is a natural extension of the business.  We are focused on helping students achieve their goals by protecting them against unforeseen risks.

If you enjoyed this conversation and want to discuss the topic further, feel free to leave comments below or you can always reach out to Mr. Suneson on Twitter at BILLSUNESON

To My Faithful Readers – please disregard this interruption to your regular CheapScholar.org programming.

Today I am doing a presentation for OASFAA (Ohio Association of Student Financial Aid Administrators) and OCAN (Ohio College Access Network) highlighting how social media can be utilized in the Student Financial Services arena.  As part of my panel discussion, I will be covering the intricacies of Facebook.

To My Financial Aid and College Access Network Friends- Below is some additional information for you to reference and utilize as you move forward in your individual social media projects on your campus. If you encounter any questions along the way, don’t hesitate to drop me a line. Enjoy!

Twitter Stats and Facts (2010)

• Over 106 million accounts
• 300,000 new Twitter accounts are opened each day
• Twitter’s website gets over 3 billion visits each day
• 55 million tweets are sent each day
• 61% of users are English (Portuguese take second place at 11%)
• Twitter ONLY has 175 employees
• Guide to setting up a Twitter Account (pdf)
• Connecting Twitter to Facebook (Facebook updates automatically post on Twitter)

Facebook Stats and Facts (2010)

• More than 400 million active users
• 35 million users update their status every day
• 60 million status updates are posted each day
• 3 billion photos are uploaded to the site each month
• More than 3 million (Fan) Pages
• More than 20 million people become “fans” of a Page each day
• Average user has 130 friends
• Average user spends 55 minutes on Facebook each day
• Facebook is most used in the United States followed by the United Kingdom and Indonesia
• Guide to setting up a Facebook Fan Page (jpg)
• Start your own Facebook Page here

Blogging Stats and Facts (2010)

• There are over 133 million blogs on the internet
• 77% of internet users read blogs
• 80% of blogs are abandoned within the first month
• 68% of Bloggers have been blogging for over 2 years
• 20% of Bloggers update their blog daily
• Some popular blogging platforms include: WordPress & Blogger

Here is a cool video that displays the impact of social media on the world

Got a college student? Your life can be complex. Add to that the confusion over whether your student needs to file a tax return and you might need help. Today my guest blogger is a CPA, Carol Topp of TeensAndTaxes.com.

When does a college student need to file a tax return? Here are some typical situations of when a student should file a tax return and may owe taxes:

• Your student received a W-2 and federal income tax was withheld. Look at the W-2 Box 2 Federal income tax withheld. He or she may be due a refund of that money.
• Your child received several W-2s, but did not have federal income tax withheld on all the W-2s (look at Box 2). They may not have had enough tax withheld and may owe income tax.
• Your student received a form 1099MISC and Box 7 Nonemployee compensation has an amount in it. Your son or daughter has been classified as an independent contractor and needs to file a tax return to pay self-employment tax and may owe income tax as well.
• Your son or daughter received investment income from interest and dividends. A child’s investment income may be taxed at the parent’s tax rate if the investment income is more than $1,900 and the child was a full-time student, under age 24 at the end of the tax year.
• Your student started a business and made a profit. He or she may need to pay income tax and self-employment tax. Visit MicroBusinessForTeens.com if your child has questions about starting or running a business.
• Your student started a business and lost money on it. He or she may wish to file a tax return to reduce their taxes in this year or future years.
• Your college student received a form 1099B from a broker, bank or mutual fund company because he or she sold stock or a mutual fund and had a gain on the sale. Your child should file a tax return and include the stock sale on Schedule D.
• Your student sold stock or a mutual fund and had a loss on the sale. He or she may wish to file a tax return to reduce their taxes in this year or future years. Capital losses are limited to $3,000 a year and can be carried forward.
• Your son or daughter had earned income from a job or a business and wishes to open a Roth IRA. File a tax return to establish that your child had earned income even if tax is not owed.
• Your student received a scholarship that included room and board. This portion may be taxable. See the IRS website http://www.irs.gov/individuals/students/ for details and examples of taxable scholarships:

If any of these situations happen to you, read more about taxes for your college student at TeensAndTaxes.com. Then consult a local CPA to help your son or daughter file a tax return.

Carol’s site, TeensAndTaxes.com has some helpful articles. She also offers an ebook and an audio to help clear the confusion about taxes for teenagers and college students.

The following is a guest article submitted by Carl Letamendi. He is a PhD student of Conflict Analysis and Resolution with a concentration in Crisis Management at Nova Southeastern University and also holds an MBA in Finance.

I made a prediction about a year ago that things were going to change in the student loan and education industry; based on being a student myself, having recently worked in financial aid and institutional collections, and also in enrollment service. I knew that there were many people out there, taking advantage of current loan programs, who only went to school for the refund generated to them each term as a means of earning an extra income, and some academic institutions were behind them encouraging enrollment based on the amount of refund money from student loans they were going to get. I knew that this would soon come to an end and that congress would catch on; and they did.

There is big news brewing behind the scene that seems to be getting swept under the rug. Effective July 2012, graduate students will no longer be able to get the much coveted Federal Subsidized Loan, which accrues no interest for the student until they are no longer enrolled in school. Although this is of no immediate impact to undergraduate students, those who are in Medical School, Law School, Graduate Business Programs, and any other graduate programs, should be very aware of what is going to happen in the next few years to come.

Being a current PhD student in Conflict Analysis and Resolution and a Finance MBA-grad, whose research interests are in financial and economic anthropology and the dynamics of how people conflict and behave during a financial crisis, I boldly unravel my seven predictions for the near future for the “business” of education and the student loan industry when the student loan bubble starts to slowly deflate, after July 2012:

1) For profit, minimally endowed, and tuition-driven schools will start to close their doors. Over the past few years, we have seen people with mortgages that caved in on themselves that put people under water as well as insurance and financial institutions failing. My prediction is that schools are up next. The notion of the “survival of the fittest” doesn’t just apply to animals and banks as we have recently seen, but we will also soon see it happen with academic institutions. Schools with strong finances, that have made wise investments in the past, and that have a strong network of alumni contributing to their university’s endowment, will survive the gradual deflation of our next bubble (notice I didn’t say “burst”). With schools closing, this also means losses of jobs for those who were working in these for-profit and minimally endowed schools.

2) Fewer graduate students will be able to afford going to school. One of the motivating factors for a student deciding which school they will be attending is the amount of aid they are going to be receiving. If a student has to pay for tuition, or if they are going to be receiving a less favorable financial aid award package, they are less likely to attend that school. Students don’t usually cough up thousands of dollars out of pocket for tuition per term; they rely on scholarships and loans. If there is no money for school, students will probably not be able to afford it; especially if these students are unemployed, and optimistic about graduate school making them more competitive in the job market.

3) Students will reconsider the value of their graduate education. There are a lot of television programs and articles in magazines questioning the value of higher education all together; and showing the incomes of very wealthy non-degree holders. One thing that I advise people who speak parallel to the objective of these articles and shows is that we are in a different time now than at the time when these millionaires became rich. They were innovative, they had ideas, they found niches in the market and societal needs, and met those needs by introducing something new to the world. You can still be innovative while getting an education, but the weight of a high-school diploma in the 60s and 70s is much different than the weight of a high-school diploma in our day and age.

4) Admission decisions will be greatly affected. Universities usually boast on having a diversified pool of students from various states. With universities offering reduced rates to in-state students, and in some states also offering students state grants ,why would a student attend a much more expensive university outside of their state of residence, and end up paying more money and incurring more expenses? The dynamic will change, and universities need to figure out how to invest in external talent if they want to continue to get out-of-state students.

5) Higher interest rates. Graduate students who do elect to continue to pull loans after July 2012 will only be able to pull the unsubsidized loan. There will still be a good number of students who are unable to repay their student loans, and interest will still be accruing. This means an increase in student loan defaults. The way to ensure that at least some of the money is recovered is regrettably, by increasing rates to other borrowers, a practice that is not estranged to us who know the credit and lending world.

6) Educational grants will be reduced for subsequent students. I predict that graduate students who will be entirely affected by this, those of the 2014-2016 class, will be less likely to contribute to their university’s endowment – a pool of funds usually used to issue scholarship and institutional grants to students.

7) Reduction of the subsidized loan for undergrads may be out in the horizon. I believe that this change will undoubtedly filter out students who are only in school for the extra refund money generated as a result of their loan disbursements. The success of this change, may also impact undergraduate students in the years to come.

If you would like to chat more with Carl Letamendi, please feel free to drop him an email at: letamend@huizenga.nova.edu

If you are already listed on your parents’ policy, ask to see a copy of the policy. Many policies allow a college student to stay on the family plan regardless of where they are attending school. In other cases, the student must attend school in the parents’ home state. Knowing this, you should ask Mom or Dad to call the insurance company to find out the details. You might be covered at no extra cost. Then again, you might be excluded from coverage. That would force you to buy your own policy.

An Individual Policy

While it is possible in most states for a college student to buy their own auto insurance as long as they are 18 or older, it is usually prohibitively expensive. While showing your independence is a good thing, it’s a little much to pay double what your parents pay for car insurance and still have enough money to live while at college. Go online and get some quotes just for the sake of comparison and you’ll see the difference. It will probably convince you that you can swallow your pride for now. It’s much cheaper to ride along with Mom and Dad.

Family Policy

Understand that staying on your parents’ policy comes with a few irritants. For instance, if you do anything that causes a spike in rates, your parents will know about it because it affects their insurance policy. You also might get an earful when they complain about the cost. A good compromise is to ask them to add you to their policy and you pay the difference in premium. It lets you both share the policy with dignity.

Driving Habits

Now that you are on Mom and Dad’s policy, you should be extra careful about your driving habits. There’s no hiding from the rate increase on your parents’ bill. Drive cautiously and safely, avoiding driving while intoxicated and only taking the car when absolutely necessary. By respecting the consequences of a mistake, you will be less likely to make one. You should care about this because a bad mark on your driving record can last until past your graduate from college.

Vehicle Ownership

Know that you may be fully responsible for everything that happens inside the car, as well as any and all traffic violations, parking tickets, or equipment failures. If you own the vehicle, you will be held responsible. Weigh these responsibilities carefully.

Going off to college is huge. The decisions you make now can affect the rest of your life. Be smart by making sure you are covered for the best rate possible, with the broadest coverage available. By driving responsibly now, you’ll be in a good position to find affordable car insurance after you graduate.

This was a guest post provided by CarInsuranceQuotesComparison.com. They offer a free car insurance quote tool that can help you price your policy, compare auto insurance companies, and decide if you should join your parents policy or take out one for yourself.