FINANCIAL EDUCATION

College is about more than earning a degree; it’s also the perfect time to take control of your finances. By mastering smart money habits now, you aren’t just managing today’s expenses—you’re investing in your future self and building skills that will last a lifetime.

Here are six key steps you can take to set yourself up for success during your college career and beyond:

1. Create a Budget

A budget isn’t about restricting yourself; it’s about empowering yourself to make informed spending decisions. A budget tracks all of your income and expenses, so you can make sure you have enough money each month. It is also a great tool to help you save for big purchases and ensure you’re prioritizing what’s most important to you.

Here’s how to get started:

• Estimate your total monthly income. Don’t forget to include side hustles!
• Estimate your fixed expenses. These are bills like rent or car payments that stay the same every month.
• Estimate your variable expenses. These include purchases like groceries, gas, and clothes that may change each month.
• Compare your income and expenses. See how much you have left over at the end of the month. If the number is less than zero, see what changes you can make so you’re not spending more than you make.

Need more help? Check out the FTC’s free budget worksheet.

2. Track Your Spending

Small purchases add up! That iced latte you get on your way to class could also be costing you more than you think. A key part of managing your finances is creating a routine to track every purchase you make.

Tracking your spending can help you understand where your money is going, see where you could cut back, and spot suspicious transactions quickly to keep your accounts safe. And it’s easier than ever with banking and budgeting apps. Whether you use a mobile solution or go old-school with a notebook and pencil, find a method that fits easily into your everyday routine.

3. Understand Your Loans

Navigating your student loans can feel daunting, but taking the time to break it down can help save you time, money, and stress in the long run. Make sure you understand exactly how much you owe, when your payments start, how much your payments will be, how to pay your loan off early, and what to do if you have trouble paying. Visit the federal student aid website for more information, or reach out to your school’s financial aid office if you have additional questions.

4. Use Credit Wisely

To get a credit card or not to get a credit card? Many college students facing this question don’t explore their credit options out of fear. However, using credit responsibly in college can help you build a solid credit history for after graduation. Remember to pay your balance in full each month, always pay on time, and pay attention to interest rates to shop for the best deal. When in doubt, ask an expert!

5. Save What You Can

While you might not be able to save a lot of money early in your financial journey, it’s important to start anyway. Every little bit helps, especially if you put it in a savings account with compounding interest. Starting early will not only protect you from unexpected events, but also help you build habits that will be easy to maintain throughout the rest of your life. Look for ways to save around campus: consider meal-prepping at home instead of eating out, rent or buy used textbooks, and always look for student discounts.

6. Invest in Your Financial Education

Many schools offer financial literacy courses and resources for students. Check out your financial aid office, student affairs office, or career center to see what resources are available. If they don’t have any programs, talk to an advisor about starting one yourself, or check out free online courses like the FDIC’s Money Smart for Young Adults program.

Starting Your Financial Journey

Financial literacy is a lifelong journey. But building a healthy financial skill set now will help you establish a strong foundation for a successful future. To get started, try picking just one item from the list and see what you can accomplish today. Small, consistent actions over time are the secret to long-term financial freedom.