Smart money moves for every college student

Heading to college is an important milestone and can bring a lot of excitement around campus activities and classes, meeting new friends, and gaining more independence. While these are key parts of the experience, making financial health a priority during the college years should also be a focus. Here are helpful tips for boosting financial literacy and money management skills for those about to head into freshman year or are kicking off a new semester.

1. Create a budget

From school supplies and textbooks to meals and events, there are a variety of expenses for a college student. And if income is limited, it can be challenging to avoid overspending. Creating and maintaining a budget on paper or with websites or apps can add financial structure and help you manage income and expenses more effectively. Regularly reviewing a budget can help students pinpoint unnecessary expenses, work toward savings goals, and ensure there is enough income to meet monthly obligations.

2. Explore financial aid options

To help pay for tuition and other school-related expenses, many students rely on financial aid to cover the costs. Still, they may not understand how financial aid works, how it can be used, or the difference between scholarships (typically based on merit), grants, and loans. By doing a little research, you’ll likely discover there is a large variety of scholarships and grants available. Weighing your options can include federal loans, state tuition assistance programs, and private loans. Make sure to review the terms of payment and don’t overborrow. Having a clear picture of what financing is available and what the differences are can make setting priorities easier and help you confidently choose the option that is best for you.

3. Save on textbooks

Regarding college expenses, paying for textbooks can be a real drain on a budget. To help with these costs, try avoiding buying new books at the campus bookstore and keep an eye out for posts on campus bulletins and online stores. Many schools may offer a textbook rental program or have eBook options available. Once the school year ends, it may be possible to sell used textbooks to school bookstores, retailers, or online sites to get some cash back.

4. Find student discounts

Thankfully, being a student can come with some money-saving perks. Many local venues, vendors, restaurants, and other services near campus may advertise savings for students to encourage business. It’s also a good idea to ask a retailer if student discounts are available at checkout. From half-off sandwiches to discounted computers, it may be possible to find great deals with some inquiry and a campus ID.

5. Build savings

Putting money toward savings may not be top of mind in college, but starting early can have a large impact. When saving, it’s a good idea to have a goal in mind, like saving for a car, a TV, or a computer. Depending on personal budget and expenses, automatically depositing a set amount each month can make it easier to work towards the set goal. Even if it’s small, routing that money directly to savings can make a difference over time. Making the choice to set aside money not only provides a financial head start, but it can also help a person develop key financial skills that will be used throughout their life. College students may not be able to reserve much at first, but if you work part-time on or off campus or find some other means of income, you can slowly build up this reserve.

6. Protect yourself from identity theft

Unfortunately, college students are not immune to identity theft. On a college campus, students are around a lot of people and are often on shared online networks. Personal information can easily be stolen in the library, in the dorm, or even in the dining hall. Never share personal information, like Social Security numbers or login passwords, and don’t leave papers or documents with important information lying around. Helpful tips for protecting against identity theft include:

• When using public WiFi, always log in to a secured network, or invest in a VPN, to keep thieves from seeing personal information.
• Use strong passwords for all logins on computers, tablets, and smartphones, and change them often.
• Pay attention to bank and credit card accounts regularly. If you see any suspicious activity, report it right away.
• When using a school computer, always log out completely when done.
• Do not let a roommate or a friend borrow your credit card.

7. Establish a credit history

Credit cards can be financially dangerous if not used properly, but it’s also beneficial to establish a credit history while in college. When considering a credit card, do your research to determine the interest rate, annual fees, and possible perks, like travel miles or cashback rewards. It’s important to avoid the common trap of using a credit card to spend money you don’t have. Choose purchases that can be paid off monthly and set up autopay to cover those bills.

With responsible card use, college students can build credit and gain valuable money management practice for the future. Remember, credit can help tremendously when getting an apartment lease or auto loan, and many employers look at credit scores when reviewing job applicants.

Financial planning in college

Taking charge of finances as a college student can help put you on a positive path toward a more secure financial future. Finding ways to build financial literacy and gain budgeting skills can help students enter adulthood with greater money knowledge and confidence around financial decision making. Plus, students who make financial moves before graduating, like building savings, curbing overspending, and keeping an eye on debt, can head out into the world with a stronger financial foundation upon which to build further.

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