7 Money Lessons For College Freshmen

Learning to manage your own money is a learning curve – start with these 7 lessons.

The most exciting time is here – you are about to start college! You will get to manage your own schedule, and very importantly, your own money. It can be a learning curve – so let us help you with the first steps! Take these tips with you when you start college in these coming weeks:

1. About credit – Your credit behavior now can make or break your financial life in the future, when you need good credit score to buy a house or a new car, among many things more. So learn about credit and credit cards (we have blogged some basics and credit card tips). You will also see a lot of credit card offers on campus or even in your mailbox. Consider them very carefully – remember: Credit is not free money, and make it a priority to pay your balance in full every month.
2. About identity theft – The public access and shared use of most everything in college means your identity and access to your bank account can be vulnerable if you’re not careful. Don’t share your important personal numbers (social security, credit/debit card number, driver’s license number) – especially through a phone call, email with an unverified source, or sharing with your “friends” on social media. See some other ways to protect yourself from identity theft.
3. About your dorm/apartment – It is nice to be able to decorate your own independent space. But this is also just a temporary stay. Spending a lot on furnishing will just lead to spending more to move or wasting your money and effort – opt for light, portable items, and remember garage sales and thrift stores items can work just fine!
4. About spending on food – Next to big bills like rent, food will likely take up a big portion of your monthly spending. But is it always worth it? You can have a small fancy latte every day for a month, or instead make your own coffee and put that $120 toward your spring break/new laptop/etc. savings. What’s more, the campus and surrounding community generally understand college students are tight on budget, so there are frequently cheap to even free meals or snacks on and around campus. Look for and make use of these resources!
5. About saving with technology – You already know your gadget and phone can do a lot of cool stuff. Unsurprisingly, technology can also help you save a little or a lot on almost anything – books, food, entertainment, gas, gadgets, clothes… Take a little time to dive into quick research online or on your phone before spending on something, you’ll likely come across deals for it. Technology also gives you a way to keep track of your money within fingertips – consider using money managing apps or your bank’s mobile version to help you with budgeting and tracking spending.
6. About trivial expenses – They each may not cost a lot, but together they make an unnecessary and avoidable hole in your budget. These expenses include: late fees when paying bills or returning library items, parking tickets, ATM fees on multiple withdrawals… Thinking ahead and paying a little attention to avoid these expenses can help you save a lot.
7. About loans – Taking out loans should be your last resort. Student loan debt can take up to 10 or more years to repay, with interests added each year. Consider all your options and have a repaying plan before taking out a loan. Don’t use your loan to pay for immediate expenses (rent, utilities bills…) or give up your degree once you have taken a loan. Some other of our tips on student loan can be found here.

These basic tips aside, college is a great time to be creative about saving and making the most bang out of your buck. Follow the Tips for students section on our blog for more. What other money advice do you have for starting college freshmen?