Protect Your Money
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EMERGENCY FUNDS
Experts suggest that three to six months income should be set aside to prepare for potential emergencies or conversely to take advantage of opportunities that may arise. While this may not be possible or even likely as a student, at least not right away, we encourage students to do what they can to set aside funds for the eventual rainy day we will all experience at various times as individuals. "Do what you can" seems to be the most pragmatic advice that can be offered here.
IDENTITY THEFT
Pre-eminently, it is the responsibility of every individual in today's day and age to PROTECT THEIR IDENTITY. College students seem to be particularly the targets of scams designed to steal identities which can have long-lasting, devastating effects upon those victimized. You can do much on your own if you will consistently review your credit report (at least annually which you can do without charge by law) and take steps to protect your personal information. There are providers in the private sector now that can be hired to assist you in protecting your good name and identity- although we do not endorse or guarantee their performance in any way. Dealing with them, if desired, would be strictly at your own risk but may be very helpful..
WATCH: Dave Ramsey warns students, "You're a Target!"
RISK MANAGEMENT (INSURANCE)
Catastrophic risk, if left unmanaged, can have devistating financial and other consequences. Examples of catastrophic risk commonly faced Include (but are not limited to):
Major Health Concerns
Partial or Complete Disability
Personal Liability for Bodily Injury, Property Damage or Otherwise
Premature Death or Dismemberment
Unexpected Litigation
Natural Disasters
Victimization based on Crime or Other Wrongful Acts (Torts)
Example: Consider the relatively well-to-do student with $10,000 in savings who goes out one evening with some friends and unintentionally causes a car wreck while driving and checking an inbound text message at the same time. Although the student presumably has auto insurance, the limits of bodily injury and liability coverage on the policy are likely just the minimums required by law and the damage created in the wreck could very easily exceed those limits which would make our hypothetical driver responsible for any damage that exceeds the limits of the policy out-of-pocket!!! That could ruin the week-end plans, huh?
This possibility and many others exist- even and in some cases especially in the context of student life. Most of the catastrophic risks noted above can be managed effectively and even affordably by transferring the risk to an insurance company for the payment of a regular premium.
We can discuss which alternatives may make most sense in your circumstances and can develop a risk management strategy that makes sense for you. Since you can't "do it all" you will need to prioritize and again, "do what you can."
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