4 Financial Tips for College Students

While a college education brings many benefits, there’s no denying how expensive it has become. With student loan debt in the United States totaling $1.753 trillion, it’s more important than ever for students to be wise with their money. Whether you’re starting your freshman year or getting ready to graduate in a few months, these financial tips for college students will help you manage your money well.

1. Create a Budget

College expenses add up fast. Besides tuition, room, and board, there are also textbooks, living expenses, and entertainment. That’s where a budget comes in. A budget is a financial plan that tracks your income and expenses, ensuring you stay on top of your finances. It helps you identify where your money is going and calculate how much you have left over for saving and spending. You can use a budget to set limits on your spending and achieve specific goals, such as saving for a new laptop.

Creating a budget is simple:

1. List all your sources of income. Include scholarships, money from family, and any other funds you receive.
2. List all your expenses. Include necessary expenses such as tuition and variable ones like dining out.
3. Calculate your net income. Subtract your total expenses from your total income to determine how much money you have left over.
4. Allocate your funds. Divide your net income into additional categories, such as savings and emergency funds. A general rule is to save at least 20 percent of your total income each month.
5. Review and adjust. Regularly review your budget to ensure it’s still meeting your financial needs, and make adjustments as necessary.

2. Get a Job

We understand that you may be busy enough just trying to keep up with classes while maintaining some semblance of a social life. But working a part-time job can go a long way toward covering expenses and building up savings. And many colleges offer on-campus jobs, keeping your commute short. You may even be able to get some studying done while working at the front desk in your residence hall, for example. Many on-campus jobs are available through work-study programs, which allow you to build your work schedule around your classes. Off-campus jobs, such as retail and food service, are also widely available in most college towns.

3. Use Student Discounts

You won’t be a student for long, so take advantage of student discounts whenever and wherever you can. All sorts of companies offer them, and it never hurts to ask about one. The next time you’re shopping, eating out, buying a bus ticket, or getting your hair cut, ask if they offer a student discount. For the best student deals on electronics, restaurants, software, home goods, and clothing, check out this article from CNBC.

4. Start Building Credit

A positive credit score will help you in many ways in the years to come. Some apartments and leasing companies will check your credit score before allowing you to move in, and it will also help you secure a loan on a car or your first home. If you have student loans, you can build credit by making regular payments on them while you’re still in school. Consider making small payments once or twice a month. Your budget can help you determine how much you can afford to pay back every month.

Call SharePoint Credit Union for More Tips

College is expensive, but it doesn’t have to bankrupt you. For more financial tips for college students, contact a SharePoint Credit Union representative at 952-930-0700. We are here to help you build a strong financial future as a student!
 

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