Money is the guide to financial independence whether you are still in your teens or a senior citizen. Understanding your relationship to money will make it easier to budget now and in the future. The sooner you develop a plan to manage your finances, the better.

First, figure out whether you are a spender or a saver. Do you plow through your allowance or paycheck before the next one is due or do you tuck something away for a rainy day? Once you recognize your spending/saving pattern, you can budget accordingly.

Controlled spending as well as securing and managing credit are big steps toward adulthood. Below are some tips to keep in mind:

• Develop a budget and follow it. Make sure you know how much money you have coming in and keep track of how you spend it – right down to the last pack of gum.
  
  
• Use your college loans to pay for your school expenses not your social life. If you're going to borrow money, at least use it for its intended purpose. School loans not only carry interest but also must be paid off within a certain number of years and are not subject to bankruptcy protection. Remember, once you borrow it, you owe it no matter what happens.
   
• Credit cards are not all bad. Terms vary, and it's important to do your research before you sign up. With an average interest rate of between 13% and 15% at the end of 2006, interest charges add up very quickly and it compounds (i.e., the interest becomes part of your outstanding balance and it is your outstanding balance on which interest is calculated for the next period). If you don't pay it off in full, your credit card debt can grow quickly. Choose the card that's right for you.
  
  
• Once you begin to use credit, safeguard your credit score. More and more businesses, as well as prospective employers, check credit scores before extending credit. A bad credit score could negatively impact your life in a big way for a long, long time.

Some Web sites to visit for more information:

Financial Planning for Students
http://financialplan.about.com/od/studentsandmoney/
Students_Grade_School_High_School_and_College_and_Money.htm

Students and Credit Cards
http://www.bankrate.com/brm/news/cc/20020815b.asp

MasterCard's Security & Credit Basics Web page
http://www.mastercard.com/us/personal/en/securityandbasics/index.html
 
MasterCard – Information on Student Cards
http://www.mastercard.com/us/personal/en/findacard/results.html?silo=10&user=0
 
MasterCard's Are You Credit Wise?

Check out the Resources for Download page
http://www.mastercard.com/us/personal/en/securityandbasics/areyoucreditwise/index.html
 
Federal Trade Commission's Web page How to Be the Class Value-Dictorian 
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt153.htm

 
Young Money Webzine
http://www.youngmoney.com/
 
My Fico [a division of Fair Isaac Corporation]
http://www.myfico.com/

 
Using Credit to Pay for College

Sallie Mae – Planning and Preparing for School, Finding Ways to Pay for College
http://www.salliemae.com/before_college/students_plan/ways_to_pay/

Make sure to take a look at some of the links off this Sallie Mae Web page:

• Other Ways to Pay
• Learn About Tax Incentives

Sallie Mae – Planning and Preparing for School, Finding Free Money (scholarships and grants)
http://www.salliemae.com/before_college/students_plan/free_money/

College Answer's free scholarship service – research millions of awards
http://www.collegeanswer.com/paying/content/index.jsp
 
CollegeBoard – Pay for College
http://www.collegeboard.com/student/pay/index.html
 
Bankrate.com's College Finance Web page
http://www.bankrate.com/brm/news/news_college_home.asp