STUDENT SUCCESS

10 Essential Financial Literacy Tips for College Students

Learn tips for building a strong financial foundation while at college.

The grand adventure of college presents new opportunities for growth—and new areas of responsibility, especially when it comes to managing your finances. From navigating student loans to budgeting for books, stay financially savvy throughout your collegiate journey by following these ten tips.

1. Construct a realistic budget

Before the semester gets underway, take time to create a budget. Consider your monthly income from various sources, including loans, scholarships, grants, jobs, or family contributions. Factor in mandatory expenses such as tuition, rent, books, and optional spending such as entertainment or dining out. A free budgeting app, like Mint, can also be helpful to kick off your planning. Be realistic about what you must spend, and plan accordingly.

2. Only borrow what you need

When it comes to loans, less is more. While it might be tempting to take out the full loan amount offered, remember that every dollar borrowed needs to be repaid—with interest. Your future self will thank your present self for taking the time to figure out exactly what you need and borrowing just that.

3. Use credit cards wisely

Credit cards can be your financial ally or your worst enemy. If you choose to use credit cards, think of them as an opportunity to build your credit. The key here is responsible use—pay off your balance every month to avoid interest charges. If you end up needing to make a large purchase, look for low- or no-interest introductory rates, and cards with no annual fee. It’s also a good idea to opt for cards that offer rewards or cash back. Your credit score is constantly subject to change, so do all you can to ensure it’s changing for the better.

4. Get smart about textbooks

Textbooks can be a significant financial burden each semester, but there are ways to mitigate those costs. Instead of buying everything new, consider renting or purchasing used books—many college campuses and local bookstores will have used books available. You may also be able to access a digital version from your local or campus library. Your wallet will thank you, and so will the environment.

5. Unleash the power of your student ID

Your student ID can be a golden ticket to discounts and freebies. From technology to travel to museums, take advantage of the perks that come with being a student. In some areas, you may even be able to ride public transportation for free or at a significant discount. Don't forget to explore free events, entertainment, and giveaways on campus! Your student status isn't just an identification badge—it's a passport to savings.

6. Utilize helpful apps

In addition to all the benefits a student ID can provide, you can also enroll in rewards programs. PocketPoints, for example, is a lifestyle gamification app that rewards “healthy mobile behavior,” like putting your phone away during class, with points to spend at participating merchants. PC Magazine also listed their best free and cheap apps for college students. When used judiciously, apps can help you improve your quality of life.

7. Prioritize security and identity protection

In the age of digital everything, safeguarding your personal information is crucial. Having strong passwords, monitoring your credit, and shredding sensitive documents are your first lines of defense against identity theft. Consider using password managers for added security and embrace multifactor authentication whenever possible.

8. Minimize fees

Fees can quietly erode your finances. Choose a bank account without hidden fees or minimum-balance requirements. When opting for a credit card, seek one without an annual fee and with a low interest rate. Be aware of hidden fees in frequently used apps, such as food delivery and video streaming. Every dollar saved on fees is a dollar that can stay in your pocket.

9. Explore saving and investing

If circumstances allow, dip your toes into the world of saving and investing. The earlier you start, the more your money can grow over time. Even small contributions to a high-yield savings account can accumulate and benefit from the magic of compound interest.

10. Get comfortable with no

Peer pressure is real, but it shouldn’t hinder financial responsibility. If a social outing doesn't align with your budget, it's perfectly okay to decline. FOMO (fear of missing out) is a common sentiment, but suggesting affordable alternatives ensures you can still enjoy quality time with friends without breaking the bank. If you live with roommates or tend to go out in groups, an app like Splitwise can help manage finances and split bills equally and keep you on top of your financial goals.

Your college journey is about more than just academics, and by incorporating these tips into your student life, you'll be better equipped to navigate the exciting yet challenging terrain of both higher education and college finances.

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