5 Tips for the First-time Saver


Avoid Credit Cards

It's a beautiful day, and you're walking across campus to your Econ 101 class when you see a group of people gathered on the quad. A smiling, young man sitting behind a table offers you a free T-shirt, and all you have to do is fill out an application for a credit card.

If you sign on the dotted line, you may wind up learning a long, painful economics lesson that the professor never mentioned in lectures. According to USA Today, the amount of revolving debt -- which includes credit card debt -- held by twenty-somethings went up 24 percent between 2001 and 2006. The same study also showed that more young people are making late payments on their credit cards, which makes the balances grow even faster.

If you want to save money instead of grow debt, forget the free T-shirt and keep on walking. You'll be glad you did.

You're not rolling in dough, so how do you come up with money to put in the bank? Next we'll look at trimming expenses.