Financial Aid Refunds - What You Should Do

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Here's a little guideline for you college students out there on what to do after you receive your financial aid refunds (if you get one).

• make a chart of what to do with the refund money

A plan is a great way of keeping on track of what to do with your money, the end result is usually what stems from the plan you create. Without a plan you might spend more and see your money disappear fast.

• open a checking account (if you don't have one)

Get one that is FDIC insured (shouldn't be difficult to find). This way you can keep updated on where your money is going and have easy access to it. Shop around for a good checking account, try to find one that has a low or zero dollar maintenance fee, offers interest on your money (see here for some suggestions), has online banking, and under $35 or zero overdraft fee.

• pay on bills and expenses
  

Get anything out of the way that you have to pay on or buy for school. Pay your bills off early so they want become a hassle later on.

• put some in a savings account

Chances are the money you won't receive back $25,000+ as a refund from your financial aid, so start small with your money and put your money in a savings account. I currently have Ally's Online Savings Account and I love the interest I receive from it. Check it out for yourself here. I would suggest opening a checking account as well for when you need access to your savings account at ATMs, plus it offers interest. But be cautious as Ally only allows 6 free transactions for your savings account per statement cycle.

• go shopping last

Pay all the debts you can and invest some, only use a small portion to spend on yourself (less than what you have saved or invested).Try to look out for sales in advance before shopping so you know where you can get the greatest deal for your money.