Establishing a financial plan for the future is equally important as planning a career. How, where, when and why money is spent are factors of financial achievement. Andrew Karolyi, a professor of finance at The Ohio State University, said students should not panic about financial planning. Instead, students should make school their first priority because attending college is the most important investment one can make. "Understand you are making the most important investment in human capital by going to college," Karolyi said. "It pays dividends for a lifetime. Do not jeopardize human capital while investing. It is good for students to think about financial planning early, but don't worry if you can't invest much early in your career." The amount of money a student can afford to save is contingent upon their personal and financial circumstances in college. "If they are someone who is working and paying for college themselves, it is more important that they pay for their education and invest in themselves," said Paul Poast, a senior lecturer of economics for The Ohio State University. Poast said budgeting in order to save money while attending college may be difficult, but it is imperative for the future. "Plan out your expenses for each month and add savings to 'must have' expenses," Poast said. "Too often savings become the residual. When planning for your future, you want to make savings a priority." Students should build a three-month reserve of their monthly expenses before they begin investing, said Larry Christopherson, a financial specialist at the Ohio State University. "One should not invest until they can afford to lose what they've invested," Christopherson said. "The unknowns can happen and if we don't have reserves, we will live paycheck-to-paycheck." Poast said students should invest in mutual funds rather than individual stocks. They are safer investments and more diversified. "I would not encourage students to invest in individual stocks," Poast said. "It can be risky to someone who does not have the time to be fully committed. They would get the best return with a mutual fund." Karolyi also said he encourages students to pursue investments through mutual funds. "Mutual funds are a young investor's best friend," Karolyi said. "They are meant to give investors access to the market with maximum diversification that allows investors to spread risks as broadly as possible." The safety of mutual funds, over individual stocks, are also praised by investment experts. Cliff Sparrow, an investment executive at Fifth Third Securities, said mutual funds are investment vehicles. "Mutual funds enable you to buy shares at a low rate with a minimum cost - between $50 and $100. They also allow students to build consistent portfolios," Sparrow said. Choosing a company to invest in is a large task and should be carefully considered, said Adam Chud, a senior in accounting. "When investing, students should consider companies that generate a substantial amount of cash flow," Chud said. "They should also consider the fundamentals - historical performance and quality of management of a company." Once a bank has deemed a student credit-worthy and they are prepared to establish a credit history, one should learn how to manage the account. Students should establish credit with a track record of steady payments, Karolyi said. "There is no magic formula to showcase your credit," Karolyi said. "If you are confident that you can finance your tuition, car payments, etc. through a credit card, then it does help you establish credit worthiness. But if you fail to make a payment, a red flag will appear to creditors." Christopherson said students should pay their balances in full and make their credit cards function as if they were debit cards. He said credit cards can do more damage than good if they are not managed responsibly. "I recommend that students have one bank credit card and spend as much as they can afford to pay in full each month," Christopherson said. Cardholders can protect their credit rating by being careful with credit cards. Students should not carry their credit cards with them. They should also be mindful of the fine print, detailing the altering introductory rate, Poast said. Put the credit card in the freezer," Poast said. "The principal behind this is, if you really need to use the credit card, you will get it out of the block of ice." Debt consolidation can help diminish debt sufficiently, so it can be managed, Karolyi said. "Be aware of scams and gimmicks that claim they can erase debt overnight," Karolyi said. "Some companies attempt to help students restructure debt with new credit cards to eliminate debt simply to generate more free income. But if you feel that your debt and personal expenses are out of control, it may worth paying the fees." Reviewing a credit report with the detailed information of past credit use can be helpful and protect students from fraud and scams. "If you have a common first and last name, you should pull your credit report each year," Christopherson said. "If you share a name with someone in your family, you should pull your credit report each year because mistakes are made. Generally, every two to three years are fine." Sparrow said students should seek advisers who can instruct them on how to invest their money. "Don't get caught up in the paralysis of analysis," Sparrow said. "Get an adviser you can trust to get you started. Do not try to reinvent the wheel; just make it roll." Investments are risks. The possibility of a large return increases as you invest more money and take on more risk, but the possibilities for failure are just as high with large sums of money. Christopherson said young investors are more likely able to recapture the money they have lost. "The younger you are, the more risk you can take because you can earn back your losses," Christopherson said. "But you have to do your homework. Do not go with the flow when it comes to investing. Engage a professional adviser to do the research for you." A financial plan for the future is essential. Learning fundamental skills in financial planning will help students develop discipline that will be useful later when they have income to dedicate to investing. "Read the writing on the proverbial wall," Sparrow said. "You have to have a financial plan for your life. Social Security may not be around at the time of retirement, so invest early and consistently put away whatever amount you can afford." Sigma Pi would like to thank Arlyne Farris and The Ohio State University for the use of this article and the information contained within.