Six Financial Tips for New College Students

Navigating the transition from high school to college is an exciting yet challenging time for both students and parents. Having successfully completed the college application journey, campus tours, and ultimately selecting a college, students and their parents are now ready to embark on this new chapter. This is the best time to equip students with the knowledge and tools to manage their finances responsibly while in school. Here some of the best tips to share with them to ensure their financial success: 

1. Know How to Live Within Your Means 

For most first-year college students, living within a budget is uncharted territory. To avoid unnecessary financial stress, it’s vital for students to create a detailed budget before heading off to college. Here’s how to get started: 

• Breakdown Expenses: Outline all expected costs, including food, books, supplies, clothing, housing, transportation, and entertainment to add to the budget plan. 
• Plan for Incidentals: Include a cushion for unexpected expenses to prevent financial shortfalls by creating an emergency fund.  
• Use Budgeting Tools: Budgeting apps like Mint.com and PocketGuard.com are recommended to help track spending and stick to the budget. 

Students should watch their spending closely and adjust their budget as needed. Knowing how to live within their means is a valuable life skill. 

2. Become Credit Card Savvy 

Credit cards can be both a helpful tool and a potential pitfall for college students. Here are some pointers to help with making smart credit choices: 

• Understand the Basics: Every student should learn how to read a credit card statement. They need to understand how to review charges, check interest rates, and how to find any additional fees. 
• Responsible Use: Pay off the full credit card balance each month to avoid interest and late fees. 
• Start Small: Students should start with a low-limit credit card or use a debit card to help ensure responsible spending habits. 

By establishing good credit habits early, college students can build a strong financial foundation for their future. 

3. Choose the Right Bank 

Choosing the right bank can have a significant impact on students effectively managing their money. Here’s how to find the best banking options: 

• Compare Offers: Research local banks and credit unions near the college that offer student-friendly accounts with low fees. 
• Know the ATM Locations: Find ATM locations on and near campus to avoid costly withdrawal fees. 
• Understand the Banking Basics: Know how to write a check, reconcile a checking account, and how to use a debit card responsibly. 

Understanding the nuances of different banking options can help students avoid unnecessary fees and manage their money more efficiently. 

4. Consider Part-Time Work 

Balancing a job while in college can provide many benefits to students beyond just earning extra money. Here’s why it’s worth considering: 

• Builds Professional Skills: Working part-time helps students develop time management and professional skills that will be valuable after graduation. 
• Teaches Financial Responsibility: Students are often more careful with money they’ve earned themselves, leading to more thoughtful spending. 
• Explore Seasonal Work: A seasonal job during holidays or a summer job might be a better option for some students with their busy schedules. 

Working while in college can be a practical way to help pay for expenses and gain valuable experience at the same time. 

5. Gain Financial Literacy 

Understanding the basics of financial management is one of the best investments in a college student’s future. Here are some tips to consider: 

• Take a Financial Literacy Course: Many colleges offer courses on personal finance that can provide valuable knowledge. 
• Read Books and Articles: Students can educate themselves by reading books, blogs, and articles on financial management. 
• Avoid Impulse Purchases: Understanding mindful spending and resisting the urge to impulse buy is key for students to learn. 
•  Insurance Awareness: Understand the importance of health insurance coverage and consider renter’s insurance if living off-campus. 

The more students know about managing money, the better prepared they’ll be for financial success. 

6. Seek Out Scholarships and Grants 

Reducing your tuition burden is key to financial success. Here’s how to find additional funding: 

• Research Scholarships and Grants: Students will want to search for scholarships and grant opportunities to help reduce their reliance on student loans. They will want to continuously look for it throughout their college career, and not just before their freshman year. 
• Utilize Resources: Make use of scholarship search engines and their school’s financial aid office to find these opportunities. 
• Apply Early and Often: The more scholarships they apply for, the better their chances of receiving the funds are. 

Students who are equipped with the knowledge and tools for financial success will have less stress when learning how to be independent while in school and adjusting to college life. By following these helpful tips, they can navigate their finances responsibly and make informed decisions that will help them both during and after their college years.  

Looking for Help with College Planning?                      

At Westface College Planning, we help parents and students understand the costs of higher education and create a budget-friendly plan for college financing. Need advice on paying for tuition or more financial guidance for new college students? Reach out and schedule a complimentary consultation with us today!