College can be fun and exciting, but it also comes with money challenges.
Many college students have to learn how to handle limited finances while working towards a college degree or a specialized trade.
With costs like student loans, tuition, and daily expenses, it's important to learn good money management skills.
In this article, I’ll give you 50 tips to help you and the students in your life manage their money wisely so college life can be both enjoyable and financially secure.
UNDERSTANDING FINANCES
(1) Know Your Finances
Understand your total money coming in and your monthly expenses going out. This gives you a clear picture of your overall finances and helps you make informed decisions.
Tools like Microsoft Excel can help you track your spending and income.
Microsoft Excel offers free worksheets to help you personalize your budget.
(2) Set Realistic Goals
Setting money goals is the first step to being financially stable.
Whether you want to save for textbooks or earn money from a summer job, having clear and realistic goals will help you stay focused.
Break your goals into short-term ones (like saving for books) and long-term ones (like saving for a car), and change them as needed during your college years.
(3) Track Your Spending
Keeping an eye on how you spend your money is the key to not overspending.
Have you tried the envelope system, also called cash stuffing?
When you use the envelope/cash stuffing system, you put cash in different envelopes for specific expenses.
This helps you stick to your college budget and avoid buying things you don't need.
(4) Know budget basics
Know the basics of budgeting.
Start by splitting your expenses into fixed costs (like rent or tuition) and variable expenses (like eating out or entertainment).
This will help you figure out what you must spend money on and where you can save.
The following video, “Make a Budget in 5 Steps,” is an excellent watch for anyone new to budgeting and also for anyone needing a refresher. If you’re new to budgeting, it may get tricky, but with practice and patience, you can accomplish the task.
(5) Understand Financial Literacy
Learning about money management is fundamental. Think about taking a personal finance class or attending workshops about budgeting, saving, and investing.
You can also watch free YouTube courses or borrow library books on the subject.
Knowing about personal finance will help you make smarter money choices throughout your life.
MONITORING FUNDS
(6) Open a Checking and Savings Account
Having a checking account for everyday spending and a savings account for future goals is important.
Look for a bank or credit union that offers low fees and reasonable interest rates.
Credit unions are a good choice because they often have better interest rates and lower fees than big banks.
(7) Start Building an Emergency Fund
An emergency fund will help you deal with unexpected costs, like car repairs or medical bills.
Start by saving a small amount of money each month—just $20 can add up over time. Keep this money in a savings account that you can easily access if you need it.
GET STARTED ON YOUR EMERGENCY FUND
(8) Monitor Your Credit Score
Your credit score is vital for your financial future.
A good credit score can help you get low-interest-rate loans and other financial benefits. Use free services to check your credit score regularly and make sure it stays in good shape.
(9) Understand Debit CARDS VS Credit Cards
Debit cards help you avoid debt because you can only spend the money you already have.
Credit cards can be helpful if you use them responsibly.
Only use a credit card for emergencies or small purchases that you can pay off completely each month to avoid debt and interest costs.
This will help you build a good credit score without piling up debt.
(10) Automate Your Savings
Automating your savings is a great way to make sure you're always putting money aside.
Set up automatic monthly transfers from your checking account to your savings account, even if it's just a small amount. This helps you save money without having to think about it.
BOOKS TO HELP STUDENTS & PARENTS TAKE THE WORRY OUT OF FINANCIAL PLANNING
MAKE budget cuts
(11) Create a College Budget
Start by figuring out how much money you make each month.
This includes financial aid, money from a part-time job, and any help from your family. Then, list out all your monthly expenses, like rent, groceries, transportation, and fun activities.
Make sure your income is enough to cover your expenses, and change your spending if necessary so you don’t go over budget.
The Clever Fox Budget Planner & Bill Organizer helps you manage household and personal finances in one place, keeping track of savings, debt, bills, and expenses.
It allows you to create a budget, monitor daily spending, and store bills with 12 laminated pockets for organization.
The planner helps you set and achieve financial goals by breaking them into manageable steps.
It features a large format, durable eco-leather cover, spiral binding, budgeting stickers, a user guide, and comes in a keepsake gift box.
(12) Take Advantage of Student Discounts
Many businesses offer discounts to college students, so always ask if there’s a discount available when you buy something.
Movie theaters, public transportation, and online streaming services often offer student discounts, which can save you a lot of money over time.
(13) Buy Used Textbooks
Instead of buying new textbooks, consider buying used, or using online resources to save money on school materials.
Many websites offer cheaper digital versions of textbooks or allow you to rent them for a fraction of the cost.
You can also check if your campus library has the textbooks you need available for free.
(14) Limit Eating Out
Eating out often can quickly drain your money.
Restaurant meals often cost significantly more than cooking at home, especially when you add drinks, tips, and extra fees.
Portions are usually larger than necessary, leading to waste and unnecessary spending.
Frequent dining out also makes it harder to track your expenses, as small purchases like coffee or snacks can add up quickly without you realizing it.
(15) Save on Transportation Costs
Think about using public transportation, biking, or walking instead of owning a car.
Cars can be expensive because of costs like gas, parking, and maintenance. You can save a lot of money each month by choosing cheaper options.
IncreasE funds
(16) Get a Part-Time Job
Working part-time while you're in college is a simple way to make extra money. Many colleges have on-campus jobs that will fit around your class schedule.
Try to find jobs that match your interests or help you build useful skills.
(17) Apply for Financial Aid and Scholarships
Make the most of financial aid by applying for scholarships, grants, and work-study programs.
Remember to fill out the FAFSA (Free Application for Federal Student Aid) every year because your need for financial aid might change as your financial situation changes.
(18) Consider a Summer Job
Take advantage of your summer break by getting a summer job to earn extra money. This is a good time to save up for the next school year, which can help you borrow less in student loans.
(19) Start a Side Hustle
A side hustle is a fun way to make some extra money.
You could offer tutoring, do freelance writing, or sell handmade crafts online, to name a few. Some side hustles mentioned in the video were dog walking, pet sitting, car detailing, and videography.
This extra cash can help you pay for expenses or add to your savings.
(20) Sell Unneeded Items
Clear out your space and make money by selling things you don't need anymore.
Items like old textbooks, clothes, and electronics can be sold for a decent price, giving you extra money to put toward your financial goals.
debts and loans
(21) Understand Your Student Loans
Student loans can be tricky, but you need to know how they work.
Federal student loans usually have better terms than private loans, lower interest rates and more flexible repayment options.
Use online calculators to figure out your monthly payments and see how loans will affect your future finances.
(22) Borrow Only What You Need
When you take out student loans, only borrow what you need to pay for things like tuition, books, and housing.
Avoid using loans for things you don't absolutely need. It all adds to your student debt.
(23) Pay Interest While in School
If you can, try to start paying off the interest on your student loans while you're still in school.
Even small payments can help reduce the total amount you owe and keep your debt from increasing.
(24) Keep Track of Your Loan Balance
Regularly check your loan balance to stay aware of how much you owe. This helps you plan for repayment and avoid surprises after graduation.
Many loan servicers provide online portals for easy access to your account information.
(25) Understand the Grace Period
Most student loans offer a grace period, typically six months after graduation, before repayment begins.
Use this time to plan your budget and explore repayment options.
SMART MONEY MATTERS
(26) Choose Affordable Housing
Housing is often the biggest expense for college students. To save money, think about living on campus or sharing an apartment with roommates.
Sometimes living off-campus can be cheaper, but make sure to include transportation and other costs when making your choice.
(27) Limit Subscription Services
Subscription services like streaming platforms and monthly subscription boxes can get expensive fast.
Check which ones you really use and think about canceling the ones you don't.
You can also save money by sharing subscriptions with your roommates.
(28) Use Cash Instead of Cards
Using cash can help you stick to your budget because it limits your spending to the money you have on hand. This can help prevent overspending and make it easier to manage your money.
It helps you control your spending. You’re limited by the amount of cash you have. Once the cash is gone, you can’t spend any more. When using cards, it’s easy to swipe and spend more than you planned.
(29) Cook at Home and Meal Prep
Cooking your meals at home is a great way to save money on food.
By preparing meals for the week ahead, you can avoid eating out. Be sure to have healthy, budget-friendly meals ready to eat.
POPULAR AMAZON PRODUCTS FOR EASY Food Prep
(30) Avoid Impulse Purchases
Buying things on impulse can mess up your budget.
To avoid spending money on things you don't need, use the 24-hour rule: wait a day before buying something, and if you still want it after 24 hours, it might be worth buying.
PLAN FOR SUCCESS
(31) Start Building Good Credit Habits
Developing good credit habits now will help you in the future.
For example, paying your bills on time and keeping your balances low can improve your credit score.
And a good credit score will make it easier to get loans, rent apartments, and even get better interest rates later on.
PAYING BILLS ON TIME IMPROVES YOUR CREDIT SCORE
(32) Plan for Future Financial Goals
Start thinking about your financial future by creating a savings plan.
Whether you’re saving for a down payment on a car or starting a retirement fund, having clear goals will keep you focused and motivated.
(33) Invest in Mutual Funds or Savings Bonds
Investing in mutual funds or savings bonds is a smart way to grow your money over time.
Even as a student, you can start investing small amounts. This allows you to benefit from compound interest and build a strong financial foundation for the future.
(34) Create a Monthly Savings Goal
Saving even small amounts of money regularly can add up over time.
Set a monthly savings goal that fits your income. For example, saving $50 from your part-time job each month can lead to big savings by the end of the year.
(35) Start a Retirement Account
It’s never too early to start saving for retirement.
Think about opening a Roth IRA (Individual Retirement Account) using part of your earnings. If your job offers a 401(k) plan, you should use it, especially if they add money to it.
This can help your retirement savings grow faster.
Starting early lets you take advantage of compound interest, which can greatly increase your savings over time.
PLAN FOR EMERGENCIES
(36) Set Up an Emergency Fund
HAVING AN EMERGENCY FUND IS CRUCIAL FOR FINANCIAL STABILITY
An emergency fund should be used to cover unexpected expenses, such as car repairs or medical bills. Aim to save at least three to six months' worth of living expenses in a separate savings account.
(37) Have a Backup Plan for Financial Support
Sometimes, even the best financial planning can't prevent a financial crisis. Make sure you have a backup plan, such as financial support from family members or a small personal loan, to cover unexpected costs.
(38) Review Your Budget Regularly
Your money situation can change during the year, so it’s important to check and update your budget often.
Budgeting apps can help you stay up to date on your income and payment. Review the following free apps.
BUDGETING APPS - THESE VERSIONS ARE FREE
Customizes categories
Sets due dates for bills
Prioritizes payments
User-friendly interface
Manual expense tracking
Tracks monthly expenses and net worth
Gives you access to TransUnion and Equifax credit reports
Offers money management tools
Only tracks month-to-month, not yearly
Manages manually added purchases
Digitizes the envelope budgeting method
Gives you 20 envelopes for organizing your finances
Reviewing your budget at least every two months (preferably every month) will help you make changes and continue reaching your financial goals.
(39) Be Prepared for Medical Expenses
Sometimes, unexpected medical costs happen.
Make sure to budget for your health insurance payments and set aside extra money for medical costs.
Many colleges offer basic healthcare services like check-ups, vaccinations, or mental health help at a low cost or even for free. Using these services can save you money while making sure you get the care you need.
(40) Avoid Overdraft Fees
Overdraft fees can quickly eat away at your bank account. Set up alerts for low balances, link your checking account to a savings account, or opt for overdraft protection to avoid these costly fees.
THE COLLEGE EXPERIENCE
(41) Use Campus Resources
College campuses offer a variety of resources that can help you save money. From free food at campus events to free or low-cost entertainment, take advantage of what your college has to offer.
These resources can help you make the most of your college experience without spending a lot of money.
(42) Participate in Free or Low-Cost Activities
There are plenty of free or low-cost activities you can participate in during your college years.
Join clubs, attend workshops or volunteer for campus events. These activities not only save money but also provide opportunities to meet new people and gain valuable experience.
(43) UTILIZE CAMPUS RESOURCES FOR ACADEMIC HELP
College campuses often offer free resources to help students succeed academically.
Take advantage of tutoring services, study groups, or professor office hours.
Many schools also provide access to free software, research databases, and academic workshops.
Using these resources can reduce the need for expensive private tutoring while helping you excel in your studies.
Taking full advantage of what's available on campus can save both time and money.
(44) Limit Social Spending
Socializing is an important part of college life, but it can be expensive.
Instead of going out every weekend, consider hosting movie nights or potlucks with friends. This way, you can still have fun without overspending.
(45) Share Expenses
Living with roommates is a great way to reduce living expenses.
Share costs for groceries, utilities, and other household items. By splitting these costs, you can save a significant amount of money each month.
AMAZON BUDGET-FRIENDLY GADGETS
LIFE AFTER COLLEGE
(46) Build a Network for Future Job Opportunities
Networking is key to finding job opportunities after graduation. Build relationships with professors, alumni, and professionals in your field.
Attend alumni events, career fairs, and networking workshops to expand your network.
(47) Plan for Paying Off Student Loan Debt
Start planning for student loan repayment before you graduate. Explore different repayment plans, consider setting up automatic payments, and look into loan forgiveness programs if you qualify.
Having a plan in place will make managing student loan debt more effortless.
(48) Start a Post-Graduation Savings Plan
Saving for life after college is vital, especially if you plan to relocate or job-hunt.
Set aside money specifically for post-graduation expenses, such as moving costs or professional attire.
This will give you a financial cushion as you transition into the workforce.
(49) Seek Financial Advice
If you're unsure about how to manage your finances, seek advice from a financial advisor or use campus financial resources.
Many colleges offer free financial counseling to students.
Taking advantage of this support can help you make informed financial decisions.
(50) Maintain Healthy Financial Habits
The financial habits you develop in college will carry over throughout adulthood. Continue to practice good budgeting, saving, and spending habits even after you graduate.
By maintaining these habits, you'll be well on your way to achieving long-term financial stability.