This week I was perusing USA Today (trying to find the crossword puzzle) and stumbled upon an article that struck me as, frankly, a bit terrifying. The article screamed HUGE DEBT, NO SAVINGS in my face, warning all of us in “Gen-Y” (that group of seventeen – twenty-somethings) that we’re the only generation unlikely to out-succeed our parents financially. Harrowing stuff, especially since we seem to be in a generation of “buy now, pay later.” And when we do buy,  we want the newest and shiniest and don’t settle for less than designer brands…. Not exactly recession-friendly behavior.

The article had me thinking about my own spending habits and the habits of my peers. I certainly have gotten my act together over the past year but still struggle with the little things. I write checks and forget about them until they hit my account. I have days where I spend ten dollars on Starbucks. And then other days when I spend $20. I went through a period where I didn’t pay off my credit card balance every month (never. again.). We all struggle with the economy and our own personal finances. Here are the top 10 ways to be a savvy spender and super recessionista.

10. Keep track of your spending.
Do you know how much you spent all day yesterday, to the dime? Well, you should. Keeping on top of every little expense can save you cash in the future and keep you mindful of where your cashflow is going.

9. If you can’t indulge, don’t indulge.
I’m not saying to give up every indulgence, but if you’re about to spend $200 on a dress that you don’t have, then either wait for it to go on sale or just walk away. The dress will always be there, so wait til the cash is.

8. PAY IT OFF.
If my dad is reading this right now, he’s falling out of his office chair laughing hysterically. It took me a year to pay off my credit card balance and you know what? The only way I could do it was to mail my credit card home and never, ever have it on hand. I’m sure there are people out there who can manage their money and understand that when you receive a credit card bill, you must pay it off every month. I was not one of those people. Fees, charges and overdrafts all affect your credit score and your finances. If you can’t handle it, don’t have it. If you can, pay it off every. single. month.

7. Write down your debt in a place you’ll see it
Paint it on your wall. Write it on your fridge. If you owe 50k in student loans, THINK ABOUT IT every time you spend money. Sure, buying shots for all your friends might seem like a great idea at the time, but that seventy dollars could be going to your loan payments. Do you really want to worry about student loans when you’re ready to take out a mortgage on a house?

6. Cut back on the frills
I love caramel frappucinos, fancy make-up and high-end jeans. But, if I skip the Starbucks and hit the office coffee machine, ditch Sephora for CVS and pass up Saks for the Gap, even just for a month, I’ll save over $400 a month. Trust me, no frapp is yummier than that.

5. Plan, plan, plan
Okay, so you want to go on vacation in two months? Plan all your expenses ahead of time. Flight, hotel, bathing suit, meals, drinks, etc. Once you lay out a budget and know how much you need to set aside, it will keep you saving.

4. Get by with a little help from your friends
Plan free or cheap activities with your girl friends. Spa day at home, baking and picnicking are huge budget boosters over salon mani/pedis, high end cupcakes or fancy dinners.

3. Take advantage of your Tech-savvy
Right, Gen-Y is terrible at saving money. We’re the generation that live in a recession and have more debt than any other generations. Blah. Blah. Blah. We get it. But, what’s that one perk that we have? We’re so tech-savvy. From twitter to iPhones, we know how to work the techy angles. So embrace it. Download finance managing apps for your phone or sign up for Mint.com to see where your money’s going. Be smart and savvy and use the tools available to help!

2. Think of the big picture
If you’re still in school you don’t feel the weight of your loans right now. Even if you don’t have loans, great, but you’re about to have a whole mess of new expenses coming your way. If you plan on ever buying a house, leasing an apartment or buying a car, save now and save often. You never know when life’s going to throw you a curveball and if you don’t have that financial cushion, things can get pretty ugly, fast.

1. Don’t stress.
Yes, thinking about finances sucks. I can’t think of anything that gives me more anxiety (not even the thought of putting on a bikini in less than a month). But don’t let all the statistics terrify you. Just take a deep breath, evaluate your spending (past and present), then plan for your future. Pretty soon you’ll be ballin with a big house and five cars before you know it. Just don’t put it on a credit card!

But at $30-$150+ a pop, all I could afford were sad little 6″ tall animals, and I wasn’t about to shell out a bundle for something I was pretty sure I could do myself.

Turns out I could! And it’s even easier and cheaper than I thought. These wall-art companies must be fleecing people! Stop them by doing it all yourself.

Here’s what you need:
- Scissors
- Clear tape (optional)
- A marker
- Self-adhesive vinyl ConTact paper (Note: This is cheap and available by the yard in a variety of colors at almost all hardware stores.)

And here’s what you do:

1. Plan your design or designs before you start cutting. When you know what you want, draw a rough outline on the back of the ConTact paper. My flower is symmetrical, but if you have something asymmetrical, make sure to draw it REVERSED to how you want it to show up on the wall. Example: If you want your leaf sticking out to the left, draw it sticking out to the right on your ConTact paper.

2. Cut out your design.

3. Find a nice spot on the wall and GRADUALLY peel away the paper as you stick on the design. It will become complicated and stick to itself if you peel off all the paper before putting on the design.

4. Step back and admire your artistry.

For a few more details, larger-scale art, and mind-blowing pictures, check out this Instructable on the same topic.

Yeah, that jerk is usually me.

I’ve always been a cash girl – it’s efficient, it’s solid, and it’s hard to let go of. I just think credit cards make it too easy (“That’ll be $563.94” *swipe* “Thank you have a nice day!”) and that’s entirely my point. You can swipe away bucket-loads of money without realizing it. Credit cards make it so simple, it’s like you can get whatever you want and you’re not even spending real money.

However, when it comes down to forking over a twenty dollar bill to some Starbucks chick for a cup of coffee, I’m much more hesitant to get the overpriced (albeit ridiculously addictive) Venti Caramel Frap. With cash, it’s either you have it or you don’t. With credit, you always have it (or so you think).

I’ve seen many a times when my girlfriends get a little swipe happy and come home with shopping bags full of things they can’t really afford because “they can always pay it back later.” And I’m not too psyched about debit cards either – $32 overdraft fees because I went a dollar over my limit? Yeah okay.

I must admit that the only thing keeping me from shelling out hundreds at a time on online shopping is my serious lack of plastic. But I have reached a point in my life where it is almost impossible to go without a credit card and an embarrassment not to have a bank account. I’m all for hiding money in the mattress (uh… I mean not hiding it in my mattress- great, now the thieves will know where to look) but it simply isn’t practical anymore. I get it, I need to start building my credit. No bank = no credit = no interest = no security. So yes, I have resorted to getting myself some plastic.

But honestly, I’m worried about swiping myself to debt (ha!). Any advice? Anyone in the same boat?
Paper or plastic?

You might have said “No” to 1/2 price happy hour during the winter, but now your friends can twist your arm to drink overpriced margaritas at a trendy beach bar.  Cutting costs doesn’t have to mean cutting down on fun, however, and if you play your cards right, you can have a kickass summer and barely spend a dime.

1.  Hang out at the lake.

Big beaches can actually cost a pretty penny, when you factor in overpriced parking costs, expensive surrounding restaurants, and the gas money if it’s a major tourist trap that seems worth a 2- to 3-hour drive.  You can still soak in the sun and go for a dip at your local lake.  If the lake is part of a community park, you might have to pay a couple dollars to park, but that money usually goes towards keeping the park clean.

2.  Go fruit picking.

Check out local farms and farmer’s markets and stock of on all the fresh produce that’s yours for the picking.  Whether you visit a strawberry patch, a blueberry field, or stock up on a harvest of tomatoes, you can spend a few therapeutic hours away from the commotion of our high-tech world, and maintain your bikini bod by eating healthy.  Then, go home and conjure up some gastronomic experiments, such as homemade caprese salad (tomatoes layered with fresh mozzarella and drizzled with balsamic vinegar) or a genuine strawberry daiquiri.

3.  Get athletic.

If you can freeze your gym membership to save some cash, there’s no better time than the summer.  Even if you can’t, there’s no reason you can’t organize a group of friends to partake in some physical- and fun- activity.  Bike riding, rollerblading, volleyball, badminton, softball, basketball- if you have the equipment already, you won’t have to spend a dime.

4.  Pool parties, duh.

There’s hardly a reason to go out an spend money if you or one of your BFFs has a pool.  In fact, it’s an excuse to have a pool party every weekend.  Does warm weather make you want to start drinking at 2 p.m. (or is that just me…)? Rather than go out to an expensive lunch, have a cookout and grab a six pack of Corona Light to enjoy while you lounge.  Invite a few more people over for some quality chicken tournaments, or create a Facebook event to host the pool party of the century.

5.  Local festivals.

Plenty of towns host grand summer events, from music festivals to “A Taste of <insert city here>” to small carnivals.  Many of these events are free, but if they aren’t, they’ll be much less expensive than an excursion to the closest big city.  Even if you look up events at towns and cities that are slightly outside your normal geographic location, if you get a bunch of friends to chip in on gas, you’ll still spend less money than a summer holiday.

6.  Fireworks.

Fourth of July is NOT the only reason to set off some explosives, and this summer, there will be plenty of evenings when things go BANG! in the night.  Either go to the park where the fireworks are being hosted, or lounge in lawnchairs in your own backyard and sling back a few while the night sky is lit up.  Just bring the bug spray.

7. Camping.

You just had your big spring break holiday, didn’t you? Besides, in July and August, all the tropical locales are way too hot, humid, and congested with other tourists.  Find a local campground, and not only will you save a ton of money on lodging, but you’ll be more inclined to cook out rather than eat out, and participate in other nature-type activities rather than exploring overpriced theme parks and nightclubs.

If you are creative and look into other local happenings around your town, you’re bound to come up with individual activities that won’t break the bank.  Besides, in the summer, you don’t have to fear the outdoors, so get out and do something!  And, remember how stressed you were during finals? That should be reason alone to relax and go easy on your wallet.

To help answer this question, I’ve compiled a list of things that I feel are, and aren’t, worth the splurge during our sad and painful recession. My basic rule of thumb? Things that last are worth the cash.

What’s worth it:

Jeans. I always used to laugh at the fact that my friends paid $200+ for jeans…until I tried on my first pair of J-Brands. While you can find cheaper options, the fact of the matter is, most designer jeans are better quality. Invest in a few pairs. They feel softer, they fit better, and they last longer. Your wallet might not thank you but your tush sure will! J-Brand, Hudson, and True Religions are my top picks.

The Iphone–If you can get your fam to join in. Individual plans are pricey, but with a family plan, the monthly rates are much more affordable. The iPhone beats all other cellular choices, plain and simple; it’s genius combo of visual voicemail, thousands of apps (including Shazam, which can detect any song playing nearby and tell you what it is), iPod, internet, and more makes it the clear choice. So worth it.

Haircuts/Hair dying. If you’re looking to change your hairstyle or color dramatically, please go to a salon. Now I’m not saying you should spend $200 to get a trim, but good haircutters/colorists can really make a difference on your do (mom, I hope you’re reading this—put that herbal essences hair-dye DOWN!). So when should you indulge? When you want layers, highlights, or to alter your color dramatically. Or you can get your friend to “work her magic,” just don’t come crying to me when you’re locks are purple and lopsided.

Basics. But only ones that you will use and use and use. This includes: a little black dress, a spring jacket, a few pairs of jeans (see above), a pair of STURDY flip flops–Reef, Teva, JCrew (watch out for water on those last ones–very durable, but zero traction)–etc. You be the judge of what’s a necessity…but don’t go overboard. Those Prada shoes are NOT basics.

What’s not:

Heels: While our feet are precious, you can pamper them without spending hundreds of dollars. There are great shoes out there that are well made, and bargains. I don’t know about you, but when I wear heels out to party, they are usually covered in dirt, sweat, and other people’s footprints by the time I get home. Point being, I’m not about to go throw my savings on a pair of Jimmy Choo’s. Instead, I love to shoe-shop at victoriassecret.com, shiekhshoes and DSW. To get your fix of strappy goodness, check out these (cheap!) beauties.

Manicures: Unless you’re extremely uncoordinated, DIY manicures can yield results just as pretty as those from a salon. Even better than do-it-yourself? Grab a friend and paint each other’s nails. One tip: After clipping, filing, and moisturizing your hands, buff each nail’s surface with a very rough buffer—this will help the polish stick and stay put for weeks. For summer, I adore bright shades. Try Essie, a cheap polish brand that has everything from neon yellows (great with tan/dark skin) to bright reds (beautiful on the fair).

Toiletries: Taking care of your body and face is important, no doubt, but people really underestimate the effectiveness that cheaper products can have. My $7 face cream has quenched my skin’s thirst just as well as my friend’s $50 bottle has quenched hers. And my Maybeline mascara has plumped my lashes just as well as that Dior Show I mistakenly purchased once. Until your skin is ridden with wrinkles and you need some serious skin care products, stick to affordable options.

Underwear: My opinion on undergarments? If they’re not visible, they shouldn’t be blasting your budget. And as for the claim that guys like when girls wear expensive, intricate lingerie? It’s false. I can assure you that the guy you’re sleeping with won’t care whether you’re wearing a bra from gap or La Perla–he’ll just wanna get that thing off! That said, it’s fun to feel comfy and sexy, even if you’re alone in the comfort of your own dorm room. Victoria’s Secret’s 5/25 undies deals are awesome, and they come in tons of cute styles, proving that you don’t have to sacrifice feeling sexy for staying on a budget.

Sunglasses: While designer shades can look pretty sleek, $15 ones can too. And since I lose my sunglasses about every 5 minutes, spending hundreds on them seems pretty dumb. Urban has a lot of funky choices that will fit a tight budget.

Gym Membership: Most universities and colleges offer on-campus gyms, but if you’re a graduate, or your school is lacking facilities, take the opportunity to get outside. Spending hundreds on a gym membership is not worth it when you have the great outdoors! Run, walk, hike, or do some at-home workouts—for free! Whatever floats your boat.

In reality, I’d love to take my refund check and spend it in one go at the mall, especially since warm weather means I have to chuck my so-worn-they-belong-in-the-What-Not-to-Wear-dumpster sweater boots, and I don’t have ANY cute flip flops to wear in their place.  But, since I’ve been struggling all winter, I am going to use this money wisely.  And by use “wisely,” I don’t necessarily mean put it back into the bank.  We all deserve to splurge every now and then, and here are some of the best guilty pleasures your tax refund can buy.

1.  Upgrade your phone.

Am I the only campus coed who has never known the joys of an iPhone or Blackberry?  I recently lost my cell in a drunken stupor, and, though I had been waiting for the summer to upgrade, I figured it’s now or never.  Best buy of my life.  I got a refurbished 16-gig iPhone for under $250.  And it’s not just a phone– I can check the weather without getting out of bed or waiting for Weather.com to load on my slow-ass computer, I can check my email for last minute class cancellations while on my way to a lecture, and once I figure out these apps, I’m pretty sure I can load a calorie counter onto my phone to use in the dining hall.  How did I live without this baby?

2.  Buy a new wardrobe.

I don’t mean a new Juicy Couture bikini or strappy Jessica Simpson open-toed heels, but if you’ve got some extra cash coming your way, it’s not a bad idea to spend on some new work attire.  When you’re strapped for cash, it’s hard to shell out on a business suit for an interview you haven’t scheduled yet, but when you get a check for a few hundo in the mail, there’s no time like the present to invest.  That sleek blazer might land you the job interview, and that knee-length pencil skirt will make a great first impression when you start your new job.  Which of course will lead to earning more money, which you can then spend however you see fit.

3.  Embark on a summer journey.

Note that I did not say summer vacay. I’m not writing off putting this moolah towards a cruise–you totally deserve it– but there are other ways to travel this summer.  Use your tax refund to see the world while you build your resume by signing up for a summer abroad course or a volunteer program.  Spending the whole summer abroad will probably still cost a lot of money, but look into a week long intensive program in Europe, or check out programs like Habitat for Humanity or Teach for America.  Usually, these volunteer programs will house you, but you’ll have to foot the travel expenses.  If you can afford to get there, you’ll be rewarded with new friends, memories that last a lifetime, and an fabulous bullet on your resume.

4.  Get active.

Get physically active, socially active, or mentally active, and watch a relatively small investment go a long way.  Get private lessons in an area that you’ve always wanted to excel in, such as art lessons or vocal lessons.  Try out a personal trainer for a month, or get a year-long gym membership.  Buy a set of instructional yoga videos.  Doing something for yourself doesn’t mean you need to feel guilty later.  If you splurge on something you couldn’t otherwise afford, but it reaps a positive outcome, it can create a domino effect in your life.  By losing a few pounds (without really trying), you may double your wardrobe if you’ve kept some of last year’s suddenly-too-small jeans.  By de-stressing, you could add years to your life.  By getting better at something you could add to your appeal in the career field.  Spoil yourself now, and you’ll be doubly rewarded.

5. Eat gourmet.

Don’t go to Chez Expensif and order a $100 entree, but treat yourself to more from the grocery store than just store brand Mac n Cheese and cans of tuna.  Buy the ingredients to try that recipe your grandma passed down– that from-scratch casserole that calls for a pinch of this and a dash of that, stuff you have to buy a whole bottle of because you don’t carry ‘this’ and ‘that’ on the regular.  Buy fresh or organic products that usually make you salivate but that are never on sale.  You shouldn’t have to put a price on eating healthy, but when fresh fruit costs several bucks a pound, it’s easy to veer towards the greasy Dollar Menu when you’re paying with the change you just found in your couch cushions.

These are just a few examples of how spoiling yourself can come with advantages– and why it’s okay to blow through your tax refund.  Of course, depending on your financial situation, you may be opting to pay off your credit card bill, send in your rent check on time, or simply stash the cash in your savings account.  We do all deserve a break from time to time, however, so I hope however you’re spending your extra cash, it makes you happy.  So… what ARE you going to buy with the dough the IRS coughs up to you this spring?

It’s your BFF. You’ve known her since you were five. And yeah, you just spent a whole paycheck on housing, but you still need her to hang out. But still, you’re both broke, college students. So who’s taking the brunt, financially? If you feel like you are controlling your spending, but still can’t figure out where your cash is going… I hate to say it, but it might be your friends.

1. The Gas-Guzzling Gretchen.

You know that friend who always has an excuse NOT to drive? Sure, if you’re traveling far, you might mention splitting the cost of gas beforehand…. but when it’s someplace close, it’s hard to notice. “My backseat is full of clothes, nobody will fit back there,” or “I”m really tired, I can go out, but I don’t want to focus on driving later.” These excuses are fine from time to time, but if you realize your car is the only one getting mileage, you may want to reconsider your gas costs. It’s easy not to care when your friend needs a ride down the street, but when it becomes a daily “favor,” you end up paying.

2. The No-Cash Nancy.

With direct deposit, who the hell ever has cash nowadays? Unfortunately, this can become an excuse, and the little things can add up. $10 minimum for the card at dollar-night? If you have cash, why not cover this round? Going on a road trip, and she only has a card? Guess what- it’s on you. Sure, you don’t want to keep tabs on your friends, but a stick of gum here and a cash-only Gucci knockoff there can really add up.

3. The Homeless Harriet.

Friends truly don’t let friends drive drunk. But if you’re the gal with the on-campus apartment, it becomes the norm for people to crash at your place, especially if it’s walking distance from the pub. This might not seem like a big deal, but if you have water or electric bills to pay, you’re going to have to dig deep to make sure your friends get home safe. Even if you’re in student housing, where everything is prepaid, you’re probably going to cough up some free drunk-ass ramen noodles or a few bottles of spring water. This might not seem like a big deal, but I bet if you kept a tab, you’d end up with a whole night of free boozing for the cost it takes to be cordial to your guests.

4. The “I’ll Get the Next One” Alice

Similar to the No-Cash Nancy, Alice insists that you are such good friends, you don’t need to keep official tallies. However, she also is prone to making sure she always gets the good half of any bargain. “Let’s go drink-for-drink” you say, so Alice invites you to an expensive martini bar, where you shell out at LEAST $10 per martini, plus tip. When the drinks are over, Alice says she knows a place with more atmosphere, and brings you to a dive that happens to serve $1 Natty Lites. She buys you a beer, and stiffs the bartender. The damage? You– $25. Her– $2. But hey, she bought you a drink, didn’t she?

How can you really say “NO” to your friends, the people who bail you out of tough times over and over? You really can’t. And some friends know it. And some friends DON’T realize it, but inadvertantly rob you nonetheless. It can be very difficult to bring up, even though “Hey, why don’t you spot me a $1-Menu Breakfast, since I paid for those the entire hotel for spring break” sounds like a reasonable request.

Don’t let yourself get walked over. Your buds might not even notice that they are making out like bandits while you are selling your Sociology book to cover their bar tabs. Be honest and direct with your pals if you think you are getting the shaft, and you’ll find you have more money in your checking account… and a solid friendship to boot.

If you disagree with everything I just said, you probably don’t need this column. But if you’re nodding along because you’re officially an adult and still don’t know how to manage your money, then you might want to pay attention every week, because I’m going to (try to) get you through this, and make you a successful saver and a wise spender.]

With the economy so crappy these days, banks are jumping over each other to get to you. With deals like Rewards Checking, it’s hard not to be lured in. I mean, a percentage of cash back just for spending? It sounds too good to be true.

Because it probably is.

I’ve been bouncing between hoarding my money in a checking account or a savings account for some time. Do I want the interest, or the rewards? Chances are, you’ve had similar decisions to make. But what about these CD things that banks advertise? What are these all about?

Personally, I always assumed that CDs were for old people. You know, people with careers and mortgage payments. Until a friend opened a CD that became her “European Vacation” fund.

A CD is basically a Savings Account… except you can’t make withdrawals whenever you feel like it. Opening a CD requires a timestamp, usually lasting six months, one year, or five years or longer. The longer you put your money “on hold,” so to speak, the greater your interest rate, which means the more moolah you’ll accumlate by NOT spending.

Yeah, right. Like college kids have enough money to just hide away for six months. While CDs generally are geared towards people who have solid careers and are infancially stable– Jumbo CDs require a minimum of a whopping $100,000 deposit– more and more variations of CDs are popping up across the country.

My friend has what is called an “Add-To” CD. Each week, when her paycheck is direct-deposited into her account, a small percentage is put into her CD. Sometimes, she even forgets that something is being deducted from her pay, because she still gets some money every pay period. However, since she can’t access her money for six months, it will continue to accumulate. When she’s ready to cash in and take her European vacation, BAM! All that money will be hers for the taking.

If you have even a little bit to spare- some birthday money, a random bonus at work, the cash you got from textbook buy-back– it might be worth looking into whether your bank offers small CDs. You can hide it away for six months, and once summer hits, you’ll have this money that you may have forgotten about! Use it on a bathing suit shopping spree or a mini-vacation…or renew your CD and wait for a rainy day in another six months or so!

All that being said, life must go on, right?

So, how do we tighten the belt without living like a hermit? Here are some tips:

Budget: Set your spending limits on a weekly basis. And stick. to. it. Review your receipts at night to make sure you are staying on track, and be honest about what you are spending. This will keep your bank account in the green.

Save on Gas: Carpool with your friends or co-workers. If you need to do some errands, combine them all into one day, and make a route that will hit each stop, in one circle…versus going back and forth in all different directions.

If you live in a city, eliminate your cab usage. I know it is so much easier to hail a cab on those late, drunken evenings, but if you take some public transportation you’ll spend $2.00 versus $15. Or, trying hoofing it; you will burn those drinks away and have some extra wiggle room for a late night snack.

Make your own coffee: Think about it – while we all love those Starbucks Vanilla Lattes, at $4 a pop, that’s $20 a week (for your Mon – Fri coffee kick), $80 a month, and roughly $1,000 a year. I know it may not seem like a lot, but it adds up. Bonus: when you make it yourself, you know you will get it exactly how you want it.

Bring your lunch: Go grocery shopping (which will save you money on a day to day basis) and stock up on lunchmeats, salad fixins’ and yummy snacks. You never realize how quickly those $7 lunches add up and how easy it is to save by brown baggin’ it.

Stop shopping: I am at fault for this myself, especially at the start of a new season and new trends, but instead of spending money on things you can’t really afford, reinvent your old clothes by changing up the accessories or gettin’ a little Project Runway on your wardrobe. Or, try swapping with some of your friends. If you really can’t hold back – shop thrift. The clothes are cheap, cute and vintage; all majorly hot trends this season.

Stop the giving: I’m not saying to stop being a good person, but for the upcoming holidays, decide to do something nice with friends and family, instead of spending money on clothes, electronics and other wants. After all, gifting isn’t what the holidays are really about; spending QT with people is.

Make a Spending Limit: Even though I’m telling you to budget, I’m not telling you to give up all of life’s luxuries: i.e., nights out with your friends. However, what I will say is to leave your credit cards at home (yes ladies, no more drunken “drinks on me!” $50 charges the next morning). Protect yourself and your moolah by bringing a cash limit (be it $20, $40, or whatever you can spend) and bring ONLY that. If you run out of money, simply find someone else to but you some drinks.

Save: Even if it’s $10 a paycheck, open a basic savings plan and throw in extra cash (even spare change) whenever you can. Save it for a rainy day or whatever else you need…like Christmas shopping…

(Photo courtesy of squidoo.com)

If you disagree with everything I just said, you probably don’t need this column. But if you’re nodding along because you’re officially an adult and still don’t know how to manage your money, then you might want to pay attention every week, because I’m going to (try to) get you through this, and make you a successful saver and a wise spender.]

Everytime you whip out the plastic at the grocery store, liquor store, or gas station, the cashier asks automatically, “Credit or Debit?” It’s a simple enough question, though to many, it may be redundant. I mean, who cares what type of card it is as long as it buys you a pack of smokes, a 30-pack, or a week’s worth of Ramen Noodles?

There are a lot of pros and cons to using both credit cards and debit cards, and many people adamantly side with one form of plastic or another, much like people adamantly side with either Obama or McCain. Personally, I’m a debit kind of girl. My brother, on the other hand, swears by credit. What gives?

A debit card is like your plastic checkbook. You might not need cash in your hand, but you need to have the funds in your bank account to make a purchase. A credit card, however, lets you splurge now and pay later– even in small monthly increments. In this case, the credit card may SEEM like it has its advantages, because you can pay for your spring break trip now, and spend the next three months waiting tables to pay for it.

But beware: the reason I personally prefer to use my debit card is because it prevents me from racking up thousands of dollars in CC charges, since it doesn’t feel like I’m spending MY money. For me, I’d rather balance my checking account daily, and say, “Ok, that’s $20 here and $40 there,” and always know what I have left. A credit card bill, to me, is like a tacky Christmas gift from your wacky aunt; you never think it’s going to be THAT bad, but when the big day rolls around… gag. I always think I’m on top of the world with a few hundred dollars locked away in the bank… then I get a 2K credit card bill, and it’s like I’ve been robbed at the end of each billing cycle.

Another thing to be wary of when using your credit card is the interest rate. Sure, there’s no hurry to pay off the last five bar tabs you’ve racked up on credit… but the longer you wait, the more you’re spending on nothing at all. The appeal of many credit cards is gimmicks like “No Interest for Six Months,” which is fine and dandy for six months… and then suddenly, you’re paying off the minimum balance each month and see the current balance rise nonetheless.

On the other hand, debit cards can smack you with hidden fees as well. Debit cards come in handy when you need cash- via ATMs or cash-back with purchase, but you’re bound to be paying a fee on your purchases, or on your withdrawals from foreign ATMs. You know how you have to accept the $2.00 charge when using a foreign ATM? These days, a lot of banks charge an additional service charge for using another bank’s withdrawal services. LAME.

Another thing I do hate about debit cards is that sometimes it can take a few days for your purchases to go through to your account. That means that if you went shopping yesterday, and check your account today, you might think you have more money than you do. Bars and restaurants can sometimes cause trouble because it takes longer for the tip to go through than the food/beverage purchase. This is rather inconvenient, and unless you balance your debit card account like you do your checkbook, it can be easy to overdraw or bounce a check if you aren’t aware of the charges that have yet to go through. Which brings me to another flaw of the debit card system…

If you overdraw or bounce a check, you will pay very, very dearly. I don’t balance my purchases like a checkbook, but I do check my balance every day. So, when my balance seemed to stay the same for a few days, I figured all of my purchases had gone through (I’d gotten pretty wasted the week before and didn’t know how much I spent at the bar, so I had to wait for the bad news). I went on spending again, and the day before my direct deposit went through, I discovered that not only had I overdrawn, but that I was being fined nearly $20 for EACH individual purchase that was over my limit. WTF? If you’re above your limit with a credit card it gets declined, but I guess banks just want to trick you into thinking you’ve got the funds if your card is approved, so that they can collect on your own irresponsible stupidity.

Now that I’ve given you the lecture on responsibility, let’s get to the perks. The reason we all want a credit card: the bonus points! Just about every major corporation has its own credit card these days, and for every dollar you spend, you get some sort of reward (Starbucks cards, 10% off at Target, airline miles, etc.). Some banks have recently started rewarding their clients with cashback points on debit purchases, too, but this is a relatively low-paying perk, at least in the realm of Poor Studentsville. My debit purchases are never as outlandish as my credit purchases, so I’ve only been getting petty change rewards so far.

If you think you can handle a credit card, and not run your financial reputation into the ground, maybe a credit card’s for you. However, if you like to only spend what you’ve got, stick with debit. It’s still a good idea to have both forms of plastic, but I don’t recommend filling every slot in your wallet with a different credit card. That’s just asking for trouble, especially when you’re on a budget, like many of us are.

If you want to find the perfect credit card, and really weigh all of the perks that come along with plastic, check out CreditCards.com. You can search and cross-reference a plethora of cards, until you find one that will reward you well. Happy spending, kids!