Saving and Investing for Students

Put Away the Plastic
Don’t use a credit card unless your debt is at a manageable level and 
you know you’ll have the money to pay the bill when it arrives.
Know What You Owe
It’s easy to forget how much you’ve charged on your credit 
card. Every time you use a credit card, write down how much 
you have spent and figure out how much you’ll have to pay 
that month. Keep track of your accounts online. If you know 
you won’t be able to pay your balance in full, try to figure out 
how much you can pay each month and how long it’ll take to 
pay the balance in full.
Pay Off the Card with the Highest Rate
If you’ve got unpaid balances on several credit cards, you should 
first pay down the card that charges the highest rate. Pay as much 
as you can toward that debt each month until your balance is once 
again zero, while still paying the minimum on your other cards.
Now, once you have paid off those credit cards and begun to 
set aside some money to save and invest, what are your choices?

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SAVING AND INVESTING
Making Money Grow
THE TWO WAYS TO MAKE MONEY
There are basically two ways to make money.
1. You work for money.
Someone pays you to work for them or you have your own 
business.
2. Your money works for you.
You take your money and you save or invest it.
YOUR MONEY CAN WORK FOR YOU IN TWO WAYS
Your money earns money. When your money goes to work, 
it may earn a steady paycheck. Someone pays you to use your 
money for a period of time. When you get your money back, 
you get it back plus “interest.” Or, if you buy stock in a compa-
ny that pays “dividends” to shareholders, the company may pay 
you a portion of its earnings on a regular basis. Your money can 
make an “income,” just like you. You can make more money 
when you and your money work.