Sponsored Students Set For College

Chris Barrett and Luke McCabe, who just graduated from high school, came up with a unique way to pay for their college education: Corporate sponsorship.

In an unprecedented campaign, reports The Saturday Early Show, they will serve as "student ambassadors" for First USA Bank. In return, the company has agreed to pay each of them $40,000 in college tuition, room and board.

Their assignment formally beings this fall when they head off to their prospective schools, Pepperdine and USC. Much of their corporate-sponsored schedule is still undecided. Throughout the year, both are expected to make campus appearances and publicize financial tips for students on their Web site.

But credit card companies often come under scrutiny for hooking kids on credit. How do Chris and Luke feel about representing a company that, some say, takes advantage of kids financially? Their answer is that they are not pitching the credit cards. They are there to help students when they get the credit cards, so they can learn how to budget their money, learn how to create a budget and build awareness.

The boys signed a year contract with the company and expect to "re-sign" for the full four years of college. Chris and Luke both have undeclared majors heading into their freshman year - however both think they're interested in pursuing business or entertainment degrees.

They were inspired by a TV ad for Nike, featuring Tiger Woods sporting Nike. After setting up their Web site, they spent about months interviewing with different sponsors. They launched their partnership with First USA on June 18.

Chris and Luke say they liked First USA's idea of just selling a message of financial responsibility: Use your credit cards wisely. They also made it very clear that the boys' studies come first. Their public appearances will be limited during the school year; they already did a number of media appearances over the summer.

The boys also have to live up to the moral clause. If they misbehave, the deal is off. They must maintain a C average and be responsible on campus.

Money-saving tips from Chris and Luke:

• Plan a budget. It can be a monthly or yearly budget; 1 out of 3 people already plan out a budget. The key is to find a budget that works for you and stick with it.
• Ask: Can I afford this?22b> A lot of kids get their first credit card and go out and spend up to $2,000. Don't make frivolous purchases; only buy what you absolutely need. Ask yourself: Do I really need this or just want it?
• Make the most of your midnight snacks money. Start saving change from those late-night pizza deliveries. If you pile up your change from all your late-night eats, you'll have a lot of extra money at the end of the month.
• Invest in a savings account. Consolidate the cash you get from birthdays or holidays and transfer it into savings account or interest-bearing money market account. Instead of buying that CD, put your extra cash away.
• Help yourself to seconds. Save money each semester by purchasing second-hand books, clothes, etc. Also, determine which books you won't use at the end of each semester and sell them back to the bookstore.
• Take flight. Be your own travel agent. Check postings at the student union for sharing rides.
• Phone home. Find cost-effective long-distance plans.
• Dine in. Take advantage of the food plan that you selected by eating at the campus dining halls. If you do grocery shopping, make a list before you start so you will avoid impulse purchases.

©MMI, CBS Worldwide Inc. All Rights Reserved