To save money effectively for college (and anything else, for that matter), the first thing you need to do is to cut out all of the wasteful spending. Right at the top of the list are bank and finance charges. You may consider these charges to be minimal, but adding those minimal costs up can be another story.

Check out the following examples of potential fees you could face, depending on how you manage your money:

• Minimum balance penalty: Some banks assess fees if your checking account carries a balance below the minimum for the month. For example, if your checking account drops below $750 in any month (even if it's $749), your bank hits you with a $7 per month fee.
• Insufficient funds penalty: Any bank will slap a fee of at least $20, if not more, for bounced checks.
• Credit card interest: Carrying a balance on your credit card can cost you between 10 and 20 percent (or more) per year for the loan of that money in interest alone.
• Over-limit fees: Most credit card companies charge a fee if you go over your credit limit -- like a bank and a bounced check, any credit card company will charge at least $20 each month for going over the limit.
• Late-payment fees: If your payment check doesn't arrive on time, it'll probably cost you at least $20 for the month. (Late payments also decrease creditworthiness and increase the cost of later loans to you.)