Back-to-School: How College Students Can Effectively Manage Their Finances

It’s hard to believe the beginning of the school year is already almost here.

Starting college or heading back to campus for another year is an exciting time for many young adults, but it also comes with responsibilities as their financial journey truly gets underway.

Here are some practical tips to help you manage your finances effectively throughout the school year.

Budgeting and Managing Expenses

From tuition and textbooks to rent and furnishing your dorm or apartment, college brings with it quite a few expenses, which is why it is vital to have a budget and plan in place.

Remember to search for deals on items like used textbooks or even gently used furniture. If you have roommates, it is also wise to divide and conquer on what items each of you will bring and how you will manage shared bills if needed.

Furnishing and decorating your dorm room or apartment can add up quickly. Starting by purchasing the essentials you will need at the beginning of the year until you get the lay of the land can help you determine if those other items were truly needs or just wants.

Food prices have also increased substantially in recent years, so it is important to have a plan for how you will handle your meals. A meal plan may be the most economical if you’re in a dorm, but if you have an apartment with a kitchen, making some meals at home may prove most affordable. Crunching the numbers between your various options can help you determine the most cost effective plan for your school year.

Setting up spending limits on your accounts by category, taking advantage of student discounts at restaurants and retailers, and searching for free events on campus are just a few other ways you can look to save money and stay on budget.

Credit Essentials

As students mature into adulthood, building their credit and leveraging their borrowing options can play a key role in their financial journeys. It is vital to use credit responsibly, however, to ensure you don’t dig yourself a financial hole early in life.

College can be a great time to start building your credit history and score by using a credit card for some of your regular purchases like groceries. The interest rates you’re likely to be offered on a credit card as a young adult can be steep, however, so it is important to ensure you’re paying your balance in full each month whenever possible to limit interest accrual.

Start by making sure you understand your credit basics and carefully reviewing the terms and conditions of any credit card or alternative borrowing tool like buy-now-pay-later (BNPL) before using it to ensure you’re not overextending yourself.

Income Earning Opportunities

While the focus of college is your education, getting a part time job can help offset some of your expenses.

Some students qualify for work-study positions on-campus, so start by checking if you’re eligible for these roles. There are also often other on-campus jobs available for students who may not qualify for work-study programs that are worth reaching out to your school to inquire about. If you have a skill like graphic design, you can also look for freelancing opportunities that are available to help earn some income during the school year.

The start of the school year is an exciting time for many students. By putting a plan in place and staying on top of your finances, you can ensure you’re setting yourself and your wallet up for success. If you need additional help, consider speaking with your local banker, who can provide tips and advice to build your roadmap.