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Good Question: How do I keep my college student from going broke?

Freshman move in day is Friday at the University of Kentucky.

Between books, food and other supplies money can be tight and debt can add up fast.

Good Question: How do I keep my college student from going broke?

18-year old Ashleigh Richelle is about to head off to college.

And for the first time in her life, she'll have to manage her own finances.

"My biggest fear is being able to distinguish between my wants and my needs," said Richelle.

College students are notorious for being short on cash and over spending.

The average college student has $3100 in credit card debt on at least for different cards.

With a few smart moves, students can stay in the black and out of financial trouble.

The first step is to create a budget.

Students should anticipate their expenses for an entire semester and compare it with their available cash and income.

"If you just look week by week, you have no idea how much a Starbucks coffee is costing you over the course of a semester. These things can add to $500, $600 in 17 weeks," said Dan Kadlec a money blogger.

Next students need to control their impulses and limit their spending.

One way to do this- a pre-paid debit card that parents reload every month.

"You treat this kind of like an allowance. When the money is gone, they can't spend anymore," said Kadlec.

While its essential for students to watch their pennies, its also important to start building good credit rating.

Experts say students should keep one credit card, but use it sparingly and pay the balance in full and on time.


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