Many states have laws that let consumers freeze their credit, in other words, letting you restrict access to your credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze. This means that it’s unlikely that an identity thief would be able to open a new account in your name.

Be sure to check the cost! The cost of placing, temporarily lifting, and removing a credit freeze varies from state to state. Many states make credit freezes free for identity theft victims, while other consumers pay a fee of typically $10. And remember, each of the three major credit bureaus is independent so the $10 fee is per credit reporting agency ($30).

Placing a credit freeze does not affect your credit score nor does it keep you from getting your free annual credit report , or from buying your credit report or score.

While a credit freeze can help keep an identity thief from opening most new accounts in your name, it’s not a solution to all types of identity theft. It will not protect you, for example, from an identity thief who uses your existing credit cards or other accounts. There are also new accounts, such as telephone, wireless, and bank accounts, which an ID thief could open without a credit check. In addition, some creditors might open an account without first getting your credit report. And, if there’s identity theft already going on when you place the credit freeze, the freeze itself won’t be able to stop it. While a credit freeze may not protect you in these kinds of cases, it can protect you from the vast majority of identity theft that involves opening a new line of credit.

Learn more at www.ftc.gov

Mike Schiano is the author of Spend Your Way to Wealth. Check out his weekly radio show at www.youngmoney.com/radio.

I was sent a copy of “A Million Bucks by 30: How to overcome a crap job, stingy parents, and a useless degree to become a millionaire before (or after) turning thirty” by entrepreneur and reality TV star Alan Corey. The book tells how Corey became a self-made millionaire by the age of 28.

I was amused at some of the most radical savings techniques that helped him cut corners in his budget without cutting into his savings. I won’t endorse any of his tricks but some readers might be willing to give them a try. Here are some of the cheapskate tips he mentions:

* Never buy an umbrella. When it’s raining, just walk into any restaurant or grocery store and ask to see the lost and found. Now, don’t feel guilty. When you are done with it, leave the umbrella at another restaurant or grocery store. It’s a bit like recycling and it’s good karma too.

* Call your credit card company every sic months to get a lower interest rate, and to increase your credit limit. Threaten to sign up with a new card if they can’t. They will scramble to keep your business.

* In movie theaters that have unlimited popcorn refills, save your popcorn bag for your next visit.

* Fill out comment cards at every possible fast food restaurant. Many will follow up with complimentary food and/or gifts.
* Never buy bottled water. Go to any fast food joint and get a free cup of water. If you need some flavor, load your cup up with free lemons and artificial sweetener for some bargain ice-cold lemonade.

Consumer Reports offers five good tips for consumers looking for ways to cut down on the high costs of cell service. Number 3 won’t apply to Young Money readers but the rest may help you save some money.

1. Look into special-caller deals. Verizon Wireless and AT&T don’t charge for calls to other customers using the same service. Alltell’s My Circle Plan provides free calling to any 10 designated wireless or landline numbers with any carrier; T-Mobile’s myFaves plans do the same, for five numbers.

2. Avoid overage charges. Consumers who plan on being on the cell more than usual can temporarily increase the monthly minute allotment to avoid overage charges as high as 45 cents per minute. Consumers should also check bills to ensure they are not running significantly under or over the plan’s minutes.

3. Control your child’s phone use. If runaway costs for a child’s cell phone are a problem, consider AT&T’s Smart Limits for Wireless service. It costs a $5-a-month option that allows consumers to control, via the Web, the numbers a child can call, text, or instant message.

4. Shop around for extras. Comparing carriers or plans only by voice minutes can be an expensive mistake for consumers who will also be heavily using the phone’s other capabilities. Text messaging, now used by more than half of the respondents in Consumer Reports Annual Survey of Cell-Phone Service, can cost as much as 15 cents per message a la carte, more for multimedia attachments such as photos. By comparison, one can pay as little as a penny per message in a monthly bundle. Rates vary similarly for a data plan for Web access.

5. Consider a pre-paid phone. Paying for calls by the minute may save money, especially for consumers who don’t usually come close to using the time allotted by the fewest minute plans, typically 300 minutes a month. And no contract is required.

I wrote a post last year about the three things I had learned about college students and money since becoming managing editor of Young Money. So I felt it was time to follow up with two more observations I’ve made since then.

1. Students won’t listen to financial advice that severely restricts their lifestyles.
I’ve heard many money experts try to tell students how they should save money by making their own coffee instead of going to Starbucks. With all due respect to those well-intentioned people, they are wasting their breath. The same goes for those folks who want to students to give up their iPods or other high priced gadgets. They need to understand that young adults don’t just look at those items as expendable products. Those items have become so ingrained into their everyday lifestyle that it would be like asking them to stop breathing. A better approach is to say something like,”I know you want (an iPod/unlimited lattes/spring break trip) so what can we do to make sure you can afford to get that?” The solution usually consists of earning extra income to cover those small luxuries and/or finding a way to cut other expenses from their budget that are not as important to them.

You’re also wasting your time if you expect students to give up their credit cards until they graduate in order to avoid falling in debt. They’ll simply ignore that advice. I would never ask a student to give up his/her credit card and I don’t blame students for rejecting those who claim they should do so “for their own good.” Instead, I focus on teaching students how to use their credit cards wisely by paying their bills on time and not overspending. Students need credit cards to build a credit history. Plus, I wouldn’t want to live with the inconvenience of not owning a credit card so why should I expect them to?

2. Students think they are poorer than they really are. I recently met one of the founders of DormAid, a student-run business which offers dorm cleaning and other services to over 1,800 campuses nationwide. The company has become an amazing success in just a few years but the truly amazing part is that there are so many students that can actually afford a cleaning service in the first place. About 5% of U.S. households hire someone else to clean their home, according to a recent Ad Age article. The same story claims that college students polled regularly overestimate that number to be 30% or more of households.

Many students describe themselves as “poor” yet they sport new laptops, cell phones, video iPods, etc. I think it’s great that they have all these things as long as they can really afford them. I just think that their version of “poor” differs somewhat from most other Americans. Hey, I didn’t even own a car until my junior year of college. I realize that there are still lots of students who struggle to pay their bills each month. I’m only making the point that some students have a different perspective when it comes to poverty.

I’ve heard various reports that the number of young adults filing for personal bankruptcy has been growing in recent years. The overall number of bankruptcies is also continuing to climb despite the passage of bankruptcy reform laws that made it tougher for people to file claims. This made me curious as to the reasons why so many people go bankrupt each year. I was very surprised by what I found out.

Many media reports suggest that the rising number of personal bankruptcies is due to a combination of four factors: overindebtedness, unemployment, divorce, and illness. There’s no doubt that things like credit card debt, job layoffs, broken marriages and healthcare costs all contribute to the rising bankruptcy rate. But George Mason University researcher Todd Zywicki argues that there are other reasons that better explain our nation’s bankruptcy problem. His study “Why So Many Bankruptcies and What To Do About It” suggests that the rising consumer bankruptcy filing rate is “not the result of increasing economic distress, but rather, results from an increasing propensity of American households to file bankruptcy in response to economic problems.” In other words, people in debt are much quicker to declare bankruptcy than they used to be.

Zywicki explains that past generations dealt with financial problems by reducing spending, tapping savings, and eventually repaying their obligations. “Although most Americans today still respond to financial distress in the same way, an increasing number are likely to respond to financial problems by filing bankruptcy and discharging their debts, rather than reining in their spending or tapping their accumulated wealth.”

Zywicki claims that more people are willing to file bankruptcy because of changes in the relative costs and benefits of filing bankruptcy. Simply put, the economic benefits of filing bankruptcy have risen while the economic costs of filing bankruptcy have fallen. He also attributes the rise in bankruptcies to a change in the nature of consumer credit. For example, easier access to unsecured credit has had the unintended consequence of making it easier for consumers to fall into debt and go bankrupt.

This expansion of unsecured credit has also led to an increased impersonalization of consumer credit relations. Consumers no longer get credit directly from the neighborhood grocery store, etc.  Those local lenders have been replaced by large interstate banks and credit card institutions. The effects of this impersonalization are tough to measure but one of the results is that bankruptcy filers can now get credit a lot faster than they could in the past. Finally, there is a widespread perception that bankruptcy has lost much of its previous social stigma, and that this is explains at least some part of the increase in bankruptcy filing rates.

It’s important to know why bankruptcies are rising but the bigger topic is what we should do to solve the problem. If you’re having serious financial problems and are considering bankruptcy, then I recommend you speak to a certified credit counselor or other financial professional first. Contact a nonprofit credit counseling agency such as InCharge Debt Solutions or visit a bankruptcy/debt consolidation website such as BankruptcyHome.com to study all your options.

The Hartford Financial Group offers these 10 quick tips to help young adults get started on the road to good personal finance.

1. Make a plan. Write down your net worth, listing everything you own and owe. Prepare a budget. Once you see it on paper, take control and make changes so your money is doing the most good for you. Write down your goals and review them quarterly or yearly.

2. Start saving for retirement in your 20s, as soon as possible. Small consistent savings in your 20s will compound and have a much greater impact than waiting until your 30s or 40s. Remember, a person who doesn’t save in his or her 20s might have to save four times as much to catch up.

3. Remember that interest rates put money in your pocket two ways. When investing, a higher rate of return will accumulate significantly over your lifetime. When paying interest for borrowing, shop around because a lower rate will have more significance than you think, saving you money over time.

4. Eliminate your high-interest debt as quickly as possible. This includes credit cards or any other interest that seems considerably higher than what you are earning on your savings.

5. Establish good credit. Pay your bills, including your student loans. Bad credit can prevent you from buying a house or car, or going on to higher education.

6. When evaluating a job opportunity, consider the training offered and advancement opportunities, as well as where the job is situated and the cost of living in that region. In addition to salary, look at the benefits being offered to get a full picture of the total compensation package.

7. Make sure you are covered by health insurance. Take the plan offered by your employer, even if there is a cost. Resist the temptation to save a few dollars. It is one of the most important financial decisions you can make.

8. Join your company 401(k) or retirement plan and make voluntary contributions of at least 4 to 6 percent of your income. The cash you save immediately in taxes, plus the compounding of that money over time, make this a wise investment. In addition, many companies may match some of your contributions, giving you additional free money.

9. Minimize your housing and auto costs during your first year after graduation to give you time to accumulate funds and develop a rhythm for your personal finances. If possible, live at home for a year or rent a modest apartment, perhaps with a roommate. Buy an economy car or use public transportation. Try to keep your housing costs to no more than 30 percent of your gross income.

10. Try to keep an emergency fund of 3 to 6 months’ living expenses in the bank or money that is easily accessible in case you have unexpected needs or lose your job.

Source: The Hartford’s Playbook For Life

The University of Phoenix recently conducted online interviews with 3,000 students from across the country to determine how Generation Y university students expect to learn and what parts of the experience they think will make them the most  successful. The study shows how many young adults are working to balance competing goals of school and work.

* Almost 70 percent of Gen Y students work while attending college, an average of 23 hours per week. About 30 percent work more than 30 hours per week.

* Only 13 percent say that work takes a lot of time from school.

Generation Y also views education as a passport to greater earning potential.

* 92 percent said that getting a good job or having a career was extremely or very important goal for their education.

Q: What is the real story on manufacturer’s suggested retail prices?

A: The manufacturer’s suggested retail price (MSRP) is the price that the manufacturer “suggests” the item be sold for. But, as you know, most stores are not following the guidelines of their manufacturers because it seems everything is being sold under MSRP. Note that the price tag often reads, say, compare at $75. It usually doesn’t say previously sold at $75, because, the chances are very high that the article was never sold at the manufacturer’s suggested retail price.

The Federal Trade Commission, in its Guide Against Deceptive Advertising, provides some guidelines when it comes to merchants using comparison pricing in their advertisements. If a merchant compares a new sale price to a former price to show a big advertised discount, the former price has to be one which the item was openly and actively offered for sale for a reasonably substantial period of time.”

Equally as confusing is when you walk into a store with SALEprices posted and no other prices posted with which to compare the sale price. Maybe the sale is advertised as 25 percent off. But, you have to ask yourself, 25 percent off of what price? If this is an item you have not shopped for previously, or priced before, or you have not bought this item in quite a while, you would not have a point of reference to decide if the sale price is valid. I have also found, unfortunately and you may have found this true as well, that asking the sales clerks about a sales price or any information regarding price is not very helpful in most cases.

The sales clerks are often not even aware of the details of a sale. Yes, they helped put the signs out and marked down some inventory, but apparently no one told them that customers might ask questions.

Then again, when was the last time you asked a sales clerk for details about a product’s former price in reference to a sales price? Either you found out previously that they don’t have the answers and decided not to bother ever again, or you just see the sign and assume the sale price is a true discounted price. Taking the latter attitude will most certainly cost you some serious money over a lifetime of spending, if you take the term sale at its face value.

Having a reference price is the only way to successfully take advantage of truly discounted prices. You have got to know for sure that the sale price is a real, discounted price. Then you can make intelligent buying decisions.

The previous text is excerpted from “Spend Your Way To Wealth” by Mike Schiano. Mike’s weekly radio show can be heard at YOUNG MONEY Radio.

Young Money columnist Sanyika Calloway Boyce was recently on Fox’s “The Morning Show with Mike and Juliet” to talk about why budgets are a bad thing. Sanyika said that people simply don’t stick to budgets so it’s better to set financial goals first and then create a spending plan to help you reach those goals. Tracking your spending also lets you be aware of money wasters that you can do without.

You can check out more of Sanyika’s financial tips on her Smart Money blog.