As a student you're bombarded with loans and credit cards and it's very tempting to spend every last cent, right? However, statistics show that in addition to your student loans, by the time you're in your final year, you may owe around $6,000 on credit cards. If the interest is an average of 17%, you could be in your thirties or even forties before you've paid that off.

It's very easy to squander your student loan and to run up your credit cards on buying things that just make life more fun; DVDs, games consoles, even just ordering takeout, but if you do that, where do you get money from when you need books or to pay your rent? You may end up using your credit card to pay for those things and with added interest, you'll pay a lot more than if you'd budgeted and spread out your grants and loans.

You may also end up damaging your credit record because if you constantly max out your cards and get new ones - then do the same again - your record will show you're a compulsive spender who is probably going to run into problems making the repayments sooner rather than later. So when getting credit really counts, such as for your first home or auto loan, you may not find it so easy to convince anyone to lend to you.

Not budgeting is one of the biggest mistakes you can make, so make a list of how much money you have from grants, student loans and perhaps your job, and then make another list of everything you pay out weekly or monthly. Add in money for food and entertainment; it's pointless to ignore the cost of going out, so budget for it. If you set aside a certain amount each week and don't go over it, then there's no reason why you can't manage all through college with only minimal credit card spending.

Finally, choose your college carefully. Go to a community college for the first part of your education because what really matters is where you graduate from - not where you started out. Once your first two years are over, transfer to the college of your choice to study your major. By doing this, you'll save thousands but you'll still graduate from a prestigious school.