Money Tips

On November 4, 2008, the United States of America elected Barak Obama to be the next President of the United States. The day after the election, the market dropped 500 points followed by a 400 drop the day after. The question is why investors have such a negative view on the economy.


There are many factors that have investors skeptical about the future of the U.S. economy. One of the main reasons is the rising unemployment rate. Companies across the country are laying off workers because of slowing sales and credit problems. In fact, the unemployment rate has soared to a 14 year high of 6.5 percent and most likely to rise even higher in the near future. In Detroit, auto makers are warning and asking the government for a bailout to continue their operations. If these auto makers, which include GM and Ford, go under, thousands more people will be laid off and other auto related businesses will be tremendously affected.


Barak Obama will have a difficult task when he takes over the office officially in January. He will be faced with a U.S. debt of at least 10 trillion dollars and a slowing global economy.

So what does this mean for current college students and those who have recently graduated?

It means that you should be smart on how you spend your money. Below is a list of tips that you can use as a guideline to get you through these difficult times:


- Choose your bank carefully- make sure you know the details of your account and the different costs/fees that you must pay monthly.

- Watch where your money goes- Make sure you keep your receipts after every transaction. This will help you have an idea of where you’re spending too much money and it will also be very helpful when you check your statement at the end of the month.

- Don’t hang out with big spenders- People in college come from different backgrounds. Try not to hang out with big spenders that do not worry about their financial situation. Know your limits and don’t be afraid to pass on a dinner.

- Expect the unexpected- Things may go wrong anytime and you must be prepared to deal/pay for it. For example, if your car’s tires need to be changed, you must be prepared to pay for it.

- Use your Credit Card wisely- Do not use your credit card if you are unable to pay for it in the future. Having bad credit and a debt will be very stressful for you in the future. If there is an expensive item that you may want to purchase, save up for it in cash and then pay for it when you have the necessary funds.


These are only a few tips that may help you through this economic crisis. Make sure that you know your own financial limits so that you are not left with a big debt when you graduate. Be smart and spend your money wisely.