When high school seniors think of college, they think of freedom. But in the excitement of no curfews and fewer rules, many students forget they are also financially free, which can result in some common problems.

One source of financial complication is the transition students make from having necessities such as food and clothing provided for them by their parents to pay for these expenses on their own.

"I was a little rash with spending," said College of Arts & Sciences freshman Brody Walworth, referring to his first few weeks of college. "I didn't really enjoy the dorm food, so I ate out a bit too much. I also should have brought more food and other stuff I needed from home."

"I still have a bit of money left," Walworth said. "But it's getting to a point where I have to watch every dollar I spend."

"Managing money is just something that I haven't had enough time to sit down and figure out yet," said Jourdan Huys, a freshman in the College of Communication. "It's too easy to just let yourself throw down singles here and there when they're in your pocket."

Students also tend to go about balancing their finances the wrong way.

"People use ATM transaction histories to balance their accounts," said Sheldon Walker, branch manager for Associated Bank, 5900 North Ave. "This is a very good way to get into big financial trouble. Students need to balance their checkbooks regularly."

Many financial experts agree that credit cards are often students' biggest problem when they enter college.

"The most common thing I hear of is credit card trouble. Once they're in that student mode, a lot of credit card offers come in," said Derek Goubala, Milwaukee district manager for US Bank. "Credit card companies offer cards with very high interest rates to students, and they fall for it. This gets them in serious trouble."

"Credit card debt is the biggest problem for freshmen," said William Hunter, an associate professor of finance. "Students tend to really overextend themselves on credit cards."

Walker suggests that students avoid using credit cards entirely.

"Credit history can affect so many other parts in life, it is important to be responsible about it," Walker said. "Maxing out cards really damages credit history."

Making financial choices can be overwhelming for students, given the fact that many students have not handled their money on their own before entering college. Some students don't have any idea of what qualities to look for when choosing a bank.

"The first thing students have to do is build a local relationship with a local bank," Goubala said. "Many banks have programs to help students with finances, and this is something that students can really benefit from."

If a student finds himself in financial trouble, the most important thing to do is address the issue directly, Walker said.

"Don't ignore your bills because you will deal with collection agencies," Walker said. "Contact the creditors, see what the nature of the problem is, and see if you can work something out. Have the credit limit (of a credit card) reduced… Remember, communication is very important. Ignoring the problem doesn't make it go away."

This article was published in The Marquette Tribune on October 6, 2005.