Financial Responsibility

For some of you, going away to college may be the first time that you are responsible for your own finances. Remember that your tuition bill will only include charges for your tuition, fees, and room and board (if you will be living on campus). All other expenses, including books, supplies, personal items, and travel, will be additional and you must be prepared to manage those expenses on your own. It's important that you establish a bank account (you'll get help with this at orientation) and pay your bills fully and promptly.

Even if your family will be paying your tuition bill, you will need to manage your own money on a day-to-day basis. This may include managing a credit card for the first time. Credit cards are very common in the U.S., but are often unfamiliar to students from other countries. This is how a credit card works: you establish a credit account with a company based on your (or a family member's) prior credit record and are issued a card that can be used instead of cash to make purchases.

Having a credit card can be a lifesaver, such as when emergency car repairs are needed. But it can get you in financial trouble if you use it to buy things you can't afford. Say, for example, that you purchase $100 worth of clothing using a credit card with a 19% interest rate. If you can't pay the balance within the grace period, you will be charged 19% interest on the balance ($19) at the end of the month. Each month that the balance goes unpaid, you will be charged another 19% interest on the balance. You can see how quickly these charges add up - very soon your interest charges will be more than the initial balance!

You will find that some credit-card companies visit UB to encourage students to apply for their cards. If you do decide to apply for a credit card, be sure that you do not make any purchases that you cannot pay back within the month. If you're careful, you can have the security of the card without the financial headaches!