HESC offers tips to help you control your financial future

 (Albany, NY: April 28, 2014) New college grads are excited about transitioning from life on campus to the workplace. But, juggling a new job, an apartment, living expenses and planning for student loan repayment can be stressful. The New York State Higher Education Services Corporation (HESC), the state’s student financial aid agency, offers money management tips to help new college graduates launch a lifetime of fiscal fitness.

 1. Create and stick to a Budget The first step to controlling your finances and living within your means is to assess your income and expenses and create a budget. Creating a spending plan will empower you with to control your financial future. As you plan, remember to meet your needs first, then your “wants,” as you can afford. Revisit your budget regularly to make adjustments as necessary.

 2. Determine your expenses Take charge of your daily, weekly and monthly expenditures by keeping a spending diary. List your rent, credit card, student and other loan payments, insurance, clothing, transportation, entertainment and groceries. During your tracking period, include every cup of coffee, every bottle of water, or anything else you buy and its cost. List your cable, phone, power and water bills separately, rather than lump them together as “utilities.” Also, separate your weekly grocery costs from your eating-out expenses.

 Identifying spending patterns can help you re-evaluate and re-prioritize. For example, if you buy lunch every day, you might be able to save $30 a week or more by bringing lunch from home. Or, if cable or phone bills are draining your budget, dropping back to a lower plan may help bring your budget into balance. Plan for the things you really need versus what you want and achieve your financial goals.

 3. Save for your future Set aside money toward savings, if you are not already. A savings account can help you deal with unexpected expenses such as car repairs, medical bills, or job loss. The best practice is to bank eight months of living expenses to cover unplanned costs. A savings account will also help you reach your financial goals, whether you want to travel, purchase a home, or save for retirement. Consider automatic deposits from your paycheck to your savings account to make saving painless.

 4. Use credit wisely Establishing good credit is a powerful tool to help reach some of your financial goals. Misused credit is an equally powerful detriment to your financial future. Understand interest rates before applying for a credit card and don’t fall victim to short-term teaser rates that increase later. Limit the number of cards you use and track your purchases. Try to pay off balances in full each month to avoid interest charges.

 And, while many people receive online billing statements, it’s important to read those bills every month to avoid paying for things you didn’t purchase. A review of your monthly statement can help you spot billing errors and unauthorized purchases -- easy fixes when you catch them early.

 5. Review and understand your credit report A credit report helps potential creditors determine risk. The report includes your Social Security number, current and previous addresses, employment history, current level of indebtedness, types of credit used, any loans you have co-signed, and length of credit history. Public information including criminal or financial judgments, liens and bankruptcies are included. Your nationality, age, gender, marital status and credit score are NOT included on your credit report.

 Your credit report is used to determine your reliability in many more ways than you realize…here are a few ways a credit report can affect you right now:

•  Shopping for a new cell phone plan? The sweetest deals with the most minutes and phone options go to those who have the best credit rating. Those with poor credit ratings may be offered only pay-as-you-go plans.
• Looking for an apartment? The landlord may check credit records and deny applicants who are poor credit risks. Utility companies check credit reports, too. Those with a poor credit history may be asked to pay a deposit of up to $500 or more before service will be connected.
• Looking for a job? Some employers check your credit report before making an offer and professionals licensure could be affected by a poor report.

 The bottom line: Having a poor credit report can significantly impact your ability to borrow or get credit and may affect the interest rate on the loans or services you may be offered.

 You are more than a credit score: everyone is entitled to a free annual credit report from each of the three largest credit reporting bureaus -- go to AnnualCreditReport.com, the only provider of free credit reports authorized by Federal law. If you want your credit score, you may be required to pay a small fee.

 6. Make protecting your identity part of your daily routine The best protection against identity theft is prevention, so take steps now to safeguard your personal information. You may already be password savvy, but remember to secure your smart phone and tablet as well as your online accounts. Learn more about securing your privacy and ID at the Federal Trade Commission’s consumer information website.

 7. Know when to ask for help Signs of credit trouble may include using cards instead of cash to pay for minor purchases, making late payments, skipping them altogether, or frequently going over your credit limit. If you find yourself in these situations, there is help to get back on track.

 First, reexamine your budget to identify spending you can adjust. If that doesn’t work, or you feel overwhelmed, ask for help. Contact your creditors and ask for assistance; they may be able to offer you a temporary lower payment to help you get over the rough spots. You may want to work with a free or fee-based licensed budget planner. The State of New York State Department of Financial Services provides information and an authorized list of reputable budget planners.

 Building and following a realistic spending plan now will help you take control of your money and help you remain fiscally fit for life.

About HESC: HESC is New York State’s student financial aid agency that helps people pay for college and a national leader in providing need based grant and scholarship award money to college-going students. At HESC’s core are programs like the Tuition Assistance Program (TAP), numerous state scholarships, federal college access grants and a highly successful College Savings program. HESC puts college within the reach of hundreds of thousands of New Yorkers each year through programs like these and through the guidance it provides to students, families and counselors. In 2012-13, HESC helped more than 342,000 students achieve their college dreams by providing more than $979.4 million in grants, scholarships and loan forgiveness benefits, including $931 million awarded through the Tuition Assistance Program (TAP).