College can be one of the most exciting and rewarding experiences of your life, but the truth is, becoming more independent means facing its own new challenges. One of the most challenging aspects of college life is managing your own finances, since it’s often unchartered territory and you may have limited funds.
The good news is you can keep your college finances on the right track by putting these habits into practice—without sacrificing the fun and memorable experiences.
1. Create a Budget
A budget may sound like a buzzkill, but it’s such a helpful tool for understanding your spending habits and knowing where your money goes. Start by listing your sources of income, such as financial aid, scholarships, part-time jobs, or parental support. Then, track monthly expenses, including rent, groceries, transportation, and entertainment. You’ll know right away if you’re overspending and need to pull back in certain areas, or if you have money you can allocate to savings.
Budgeting apps can make it even easier for categorizing spending and identifying areas where you can cut costs, plus you can check on your finances daily to make sure you’re not facing any surprises, like unexpected fees.
2. Keep Student Loans to a Minimum
Student loans can be necessary for covering tuition and other expenses, but excessive borrowing can lead to long-term financial strain that follows you throughout adulthood. Aim to borrow only what you need and explore the numerous alternative funding sources, such as scholarships, grants, and work-study programs.
You can also consider attending an in-state public university, taking advantage of community college credits, or selecting more affordable housing options. And if you can make any small payments toward loans while you’re still in school, then it can help reduce the amount of interest you pay over time.
3. Save on Everyday Expenses
Don’t be afraid to ask if a place offers a student discount! Many businesses and services offer major savings for students, as long as you have your ID. Other ways you can save every day include making more meals at home, using the campus gym, taking advantage of public transportation, and attending free or discounted student events. If you’re driving somewhere, make sure you download an app that shows you the least expensive places for gas and take advantage of any rewards or discount programs. You don’t have to sit at home all day to have a great time!
4. Use Credit Wisely
College students are typically inundated with credit card offers and while credit cards can be a useful tool if managed responsibly, they can also lead to debt if misused. Paying the balance in full each month not only means avoiding interest charges and debt, it also helps you build a better credit profile.
Your credit score can have a major impact on your ability to secure a rental, apply for a loan in the future, or even get a job in some cases, so it’s worth protecting while you’re in college—and beyond.
Whether you’re a college student or an adult who wishes they were still in college, Space Age Credit Union offers a number of resources for your financial journey, contact us today.
