Sure you scored higher than everyone you know on the SAT's---Stanford sent you an early acceptance letter, and you always answer Final Jeopardy before everyone else at the dinner table---but going into a new school year, how much do you really know about fiscal responsibility? Fortunately, your answers will not go on your permanent record. For all of you liberal arts types, feel free to grade yourself...

True or False:

The average undergraduate student today carries more than $2000 in credit card debt.

Answer: True. According to the nation's largest student loan provider, Nellie Mae, the average undergraduate student has an average of $2,748 in credit card debt. That's a lot of pizza!

True or False:

The main three factors that push students into consumer debt are: Alcohol, Fast Living, and Gambling.

Answer: False. While spending too many hours playing online poker might contribute to overspending on cards---Four key factors are the main contributors to the increasing student debt load: Offers of unaffordable credit lines, increasing education-related expenses, peer pressure to spend, and general financial naiveté. The best thing you can do for your future is educate yourself on financial information---so that you don't end up in debt all for the love of a free Frisbee. There are many easy to understand resources online and locally. Your local Credit Union, such as Pacific Oaks is an excellent place to have all of your financial questions answered. We even offer free financial workshops and seminars throughout the year. For more information visit us at www.pacificoaksfcu.org.

True or False:

The best way to reduce your credit card debt is to use coupons.

Answer: False. While reducing your expenses is always a great idea, financial experts advise that you should start by consolidating your debt onto the card with the lowest interest rate and then start paying down the balance. The key (and often the most difficult thing) to do is to stop charging until you have reduced your credit card balance to a manageable level. Map out a payoff schedule and stick to it!

True or False:

Although they think they are always broke, American college students actually have more than 10 billion dollars a year to spend.

Answer: True. That's even more pizza! America's college students actually control more money than some developing nations. Overall, they spend about $19 billion dollars a year!

True or False:

Less than 50 percent of students say they pay their credit card balance in full and on time each month.

Answer: False. Contrary to what you might think, this is an area in which students are more responsible than the general public. According to a recent survey, 59 percent of students reported that they paid their balances in full and on time every month, in comparison to the 40 percent of the general public.

True or False:

All credit card companies and banks offer the same products and services and pretty much charge the same fees.

Answer: False. The only thing most credit cards have in common is that they are made of plastic. The only thing that most banks and credit unions have in common is that they all carry cash. Financial services are just like you---each is a unique constellation of attributes. There are very large differences in credit cards---things to look for when comparison shopping include: Interest Rate, Annual Fee (if any), terms of use such as late fees, default interest rates, and cash advance fees.

All credit card offers are required to include a chart detailing basic rates and fees. This chart is called "Schumer's Box". This is the most important part of the credit card offer because it offers a summary of the terms of the card in an easy to read and easy to compare chart format.

Also---not all financial institutions are created equal. Each offers many different products and services designed for people in various life stages, with varying financial goals. What's great about a credit union is that they are not-for-profit---so they generally have lower fees and interest rates when it comes to credit cards. For a student, or someone just starting out in the world---that could mean a significant savings that makes a huge difference in getting a jump start on your financial goals. For more information on Credit Unions see my previous article, "Credit Union 101". Smart students and smart consumers should shop carefully and compare multiple offers before deciding where to borrow money from and where to keep their money.

Pacific Oaks Federal Credit Union has five locations in Ventura County, and is firmly committed to serving the financial needs of anyone who lives or works in Ventura County. To find out how we can help you achieve your financial goals, please visit us at www.pacificoaksfcu.org.