About Oklahoma Money Matters

Not only is saving the key to preparing for the unexpected, it also helps you reach your financial goals and build wealth. Many people wait until the end of the month to save, only to realize there’s nothing left. Since it’s harder to spend what you don’t see, treat saving like a bill and pay it first! Each pay period, set aside a particular amount for your savings account. Aim to save three to six months' worth of living expenses in an emergency fund; this will keep you from relying on credit cards or payday loans in the event of an emergency. After your emergency reserve is fully funded, continue saving for other priorities, such as a down payment on a home, a college education or retirement.

Very few people can purchase a big-ticket item like a vehicle or home without using some form of credit. Think carefully about how and when you use credit, and if you do choose to charge, don’t use credit to fund a lifestyle you can’t afford. Finance only what you’re capable of repaying and set up a repayment plan for yourself. Pay bills on time and strive to pay in full. If paying in full isn’t possible, it’s always best to pay more than the required minimum monthly payment.

It’s easier to prevent identity theft than to overcome it. Every 4.9 seconds, someone becomes a victim of identity theft in the United States (security.org). Depending on the type of identity theft, how quickly it’s discovered, and the extent of the damage, it can take the victim from a few days, months or even years to remedy the situation (IDShield). Protect yourself by knowing where your personal identifying information is and keeping it safe. Your Social Security card, credit account statements and financial aid paperwork include vital information that could be used against you by an identity thief. It’s a good idea to shred documents you no longer need and store those you should keep in a fire-safe, waterproof lockbox.

The first step is to complete the Free Application for Federal Student Aid (FAFSA) as soon as possible after Oct. 1 of the senior year of high school and each year you need financial aid for college. The FAFSA is used to determine the student’s eligibility for federal aid, including grants, scholarships, work-study and federal student loans. Some state and private financial aid programs require FAFSA completion, too, such as Oklahoma’s Promise. It’s best to maximize grants and scholarships and use any available family savings to cover educational costs. However, many students need an education loan to cover college expenses. It’s important for students to borrow only as much as they need to pay educational expenses, because each dollar borrowed must be repaid — plus interest! A good rule of thumb is to borrow no more than the salary you expect to earn during your first year after graduation.

Students should exhaust all federal student loan options before considering a "private" loan. Federal loans typically have more competitive interest rates and offer more flexible repayment terms than some private loans. But students should do their homework to determine the best type of loan for their situation.