By Matthew Harman, Kaden Pena, & Cassandra Cruz
College can be an exciting time — a time for discovery, fun and pushing your boundaries. But amid the hustle and bustle of juggling classes, a social life, and sometimes a job or athletics, students can easily overlook the importance of managing personal finances.
Taking control of your financial well-being now can help prevent a lifetime of stress and debt after graduation.
Student Loan Management: Borrow Smart
One of the most common ways students fall into unnecessary debt is by borrowing more than they need to support their college lifestyle. Taking out an extra $1,000 per semester for weekend spending might seem harmless, but interest adds up over time. For an average student, that could mean $8,000 — plus interest — after eight semesters.
Instead, consider working a part-time job to cover personal expenses, or seek out grant-based aid that doesn’t need to be repaid. Small adjustments can make a big difference in your financial future.
Credit Cards Can Help Build Credit — With Caution
Credit cards can be a useful tool for students looking to build credit during college. Many financial institutions offer student-specific cards with little to no annual fees. However, what’s often not disclosed upfront are the high interest rates tied to these cards.
Because college students typically lack credit history, they’re seen as high-risk borrowers. That means if you miss a payment or make only minimum payments, you may be charged more for not paying the full balance.
A good rule of thumb: pay your balance in full, on time, every month. The best way to stick to this is by not charging anything you couldn’t afford to pay for in cash.
Saving Now, Not Later
It may seem difficult to save while in college, but even small contributions to a savings or investment account can add up over time. Unexpected expenses — like a flat tire or a last-minute trip — aren’t things you want to fund with a loan.
Saving just $10 a week can make a difference. Think about the cost of a Starbucks drink or a Chick-fil-A meal. Redirecting just one of those expenses each week to savings can help you cover future surprises.
Why It All Matters
The financial habits you build in college may not seem important now, but they can lay the groundwork for long-term stability. Being mindful about when and how you spend — and managing debt responsibly — can reduce your financial burden after graduation.
More importantly, it can prepare you to manage your money wisely when you land that six-figure job after college.
