Spending money is not always a negative thing for college students. Earning credit with money earmarked for a college savings plan is one way that students can save money for school while spending it. Some companies now offer credit cards to college students with a special savings plan attached. For example, for every dollar they spend with the credit card, they may earn a penny back. While this may not sound like a lot, consider how often college students go shopping for clothes, eat out at restaurants with friends and occasionally party. They decorate dorm rooms, purchase bedding and cut loose on spring break. When simply buying a plane ticket home for Thanksgiving break and eating at the airport, a college student could earn back a fair amount of money. And, of course, don’t forget the expenses on textbooks for classes. While spending money on school, students can still save.

Over time, the student can pay off the credit card. The most efficient way to do so is to pay more than the minimum payment each month. This is a hard lesson for some college students to learn. They may see shopping deals and want to buy everything they need with their credit card, knowing that it will help them in their cause of saving money for school. Some credit card lenders will allow the students to earn more than 1 percent toward their savings account. For example, there may be special deals or merchants that will merit 2 percent earned back, or even 10 percent for special online deals.

Sometimes payments may be beyond the reach of those spending all of their time studying instead of working. Instead of paying for it themselves, some students may be fortunate enough to earn a credit card from their parents with such a program attached. One way that parents may teach their college-age student to manage money is to put them on a budget with the credit card. As long as they do not exceed the parent-set limit on spending each month, they may be allowed to use it as needed for college living expenses. This will not only relieve the parents’ concern that their son or daughter is not eating well or cannot afford school books, but it assures them that the young adult is learning how to manage money even when they don’t have any.

Over time, young adults in school will learn how important it is to manage money and credit. They will also learn how important it is to look for special deals that can be used to improve their future.