Start Smart: Financial Tips For College Students

Some of the most significant lessons you learn in college happen outside the classroom. For many, you have the new freedom and responsibility of living away from home for the first time. It’s important to get your finances in order whether you are starting classes as a first-year student or a recent college graduate. Here are some financial tips to set you on the path to success.

Cash is King, but Credit is Power

One of the biggest challenges when you’re first embarking on your financial journey is understanding credit. Establishing strong credit will help you expand your opportunities later in life, whether it be furthering your education or applying for a car loan or apartment. New graduates and college students often get inundated with credit card offers in the mail, which can lead to confusion if the offer looks compelling. Consult with a trusted family member before making a big decision like opening a credit card. There are varying interest rates depending on each offer, which can add up if you cannot pay off the balance in full. Some gain credit card experience before college by becoming an authorized user on their parent or guardian’s accounts as young as age 14. This allows people to establish credit at a young age without having an actual credit card. But it’s important to keep in mind that if the parent or guardian doesn’t pay, it could negatively affect the child.

Skip the $5 Coffee

Create a budget to track your spending and come up with strategies that make sense for you depending on your priorities. For example, if you can limit purchasing expensive coffee every day on campus or spending money on food delivery to your dorm, cooking or purchasing a coffee maker will help you save in the long run. You might be surprised how much each year you can save by cutting out unnecessary expenses. As a college student or a recent graduate, budgeting will help you manage your wants to keep them under control.

Don't Be Afraid to Ask for Help

It is always the right time to ask for help. One member, who was in college, went into the credit union to make a deposit. There he met the Workers team and asked questions that led to a financial plan that worked for him. Together, they opened a rent account and an emergency savings account to help him feel confident with his finances.

College can be overwhelming and entering the real world after college can be daunting. Workers Credit Union offers products and services that will help you achieve financial wellness at any life stage.