College is an exciting step toward independence. Help make the transition easier by building smart financial habits along the way.
Between classes, studying, meeting new people and adjusting to a new routine, college students have plenty to manage. For many, it’s also the first time they’re responsible for making more of their own financial decisions.
Whether you’re a student preparing for college or a parent helping your student get ready, taking time to talk about money can make a big difference. These five financial tips can help students build a strong foundation for managing their finances during college and beyond.
1. Create a budget or spending plan
College comes with more expenses than just tuition and textbooks. Housing, food, transportation, entertainment and everyday purchases can quickly add up.
Before the semester begins, talk through:
- What expenses the student will have
- Who will be responsible for each expense
- How much money is available each month
- How much can be set aside for savings
- How much is reasonable to spend on entertainment and other extras
Having a plan for your money makes it easier to stay on track and avoid unnecessary financial stress.
2. Learn how to use credit wisely
College can be a good time to start learning how credit works and why it matters.
Students should understand how credit cards work, what affects a credit score and why making payments on time is important. If you have a credit card, make sure you understand the terms and only spend what you can reasonably afford to repay.
Developing responsible credit habits early can help establish a strong credit history over time.
3. Take ownership of student loans
Student loans can help cover the cost of higher education, but it’s important to understand what you’re borrowing and how repayment works.
Students and parents should take time to:
- Understand the FAFSA process
- Learn the difference between available loan options
- Know how much is being borrowed
- Understand interest and loan terms
- Find out when repayment begins
- Keep track of loan balances throughout college
Knowing what you’re responsible for now can make managing student loan payments after graduation easier.
4. Protect your personal information
College students often manage several financial accounts, making it important to keep personal and financial information secure.
Make it a habit to:
- Monitor bank and credit card accounts regularly
- Keep debit and credit cards secure
- Use strong, unique passwords
- Avoid sharing account passwords or security codes
- Be cautious when clicking links in unexpected emails or texts
- Report lost or stolen cards as soon as possible
Taking simple precautions can help protect your accounts and personal information from fraud and identity theft.
5. Find financial services that fit your needs
The right financial accounts can make it easier to manage money while you’re in college.
When choosing a checking or savings account, consider:
- Monthly fees and minimum balance requirements
- ATM access and potential fees
- Mobile and online banking features
- Direct deposit options
- How easily you can transfer money
- Savings options for short- and long-term goals
Students should look for financial services that fit their lifestyle and make managing their money simple.
Get Your Finances Ready for College
Getting your finances organized before the semester starts can make the transition to college easier. Set up your accounts, create a spending plan and have an honest conversation with your parents or guardians about who will be responsible for different expenses.
Most importantly, use college as an opportunity to build financial habits that can continue long after graduation.
How Kohler Credit Union Can Help
At Kohler Credit Union, we’re here to help students and families navigate important financial decisions. From checking and savings accounts to learning about credit and managing your money, our team can help you find the financial tools and resources that fit your needs.
Preparing for college is about more than getting ready for classes. It’s also a chance to start building a strong financial foundation for the future.
*Information in our blog posts are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy, their applicability to your circumstances or guarantee of credit. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.