PHILADELPHIA, PA, August 24, 2013 /24-7PressRelease/
-- As school is starting up again, many students are transitioning to college and Michael Halikias
knows that this comes with a lot of financial responsibility. Not only are some students no longer living under their parents' roofs, but they are taking on student loans as well. Having a solid understanding of how to budget and establish credit is important. According to a recent article
in Fox Business, however, these are areas that many students are lacking knowledge in.
Many students do not feel prepared to manage their finances once they graduate from high school according to the results of a survey conducted by EverFi, an education technology company. It also showed that their understanding of basic financial facts and concepts is lacking as well. The survey revealed, "On average, students believe a good credit score is about 500 and over a third believe that a good credit score is 300 or less." This makes understanding good financial habits even more important for college freshmen.
By this point in time students should have their own checking account and debit card. Opening an account that has a low or no minimum balance and online access can make it easier for students to keep track of their spending. Through online banking tools students can log on as often as they want to check their balance and monitor their cash flow. They can often set up alerts so that they know when their balance has dropped to a certain level. Staying on top of their account can help them to better see how their spending habits are affecting their finances and if they are spending more than they can afford.
To start building good credit, students can open a credit card with their parents as co-signers, or become an authorized user for their parent's card. They should look for a card that rewards good credit and has a low interest rate. Tom Karsten, a certified financial planner and president of Karsten Advisors, adds, "Freshmen should understand why their credit score is so important, how to pull a free copy of their credit history once a year at AnnualCreditReport.com and how even a few late bills can bring their score down significantly."
Many students take out student loans to help them pay for college and some living expenses. They should understand the responsibilities that come along with these loans and that defaulting on paying them back can have a negative impact on their financial future. Students should take out only as much as they need and also look into grants, scholarships, work-study programs and other ways to help pay. They want to graduate with as little debt as possible.
"College is a time for students to really begin asserting their financial independence," says Michael Halikias. "Parents should make sure that they discuss the importance of budgeting, tracking spending, and only using credit cards for emergencies. Students will become more aware of how their choices impact their finances and how that impacts their future. They want to start out on their career path with as many positive financial habits and as little debt as possible." Michael Halikias supports educating students on the basics of managing their finances.
is an experienced banking and real estate professional. In addition to his personal business ventures he is also involved with several family businesses. He has established himself as a successful investor, managing his family's financial assets in the stock market and continually producing positive returns. He sits on the advisory board of the Pan Hellenic Scholarship Foundation and also helps to run the nonprofit Halikias Family Foundation.