Starting college is an exciting time filled with new experiences. For many freshmen, it’s their first taste of independence—living on their own, navigating unfamiliar surroundings, and balancing a full academic schedule with a busy social life. With so much going on, it’s easy for responsible financial habits to fall to the bottom of the priority list. But they shouldn’t.
Establishing smart money habits during your college years can be just as valuable as the education you receive. Here are some essential financial tips every college student should follow:
Set a Budget and Track Your Expenses
Start by understanding how much income or allowance you have each month. Then, allocate funds for essentials like rent, food, transportation, cell phone, books, subscriptions, and entertainment. The key is sticking to it. Fortunately, Marine Bank's budgeting app makes it easy to create and adhere to a budget.
Open a Checking Account and a Savings Account
Look for accounts with no monthly fees, free ATM access and online banking tools. Having both accounts can help you manage daily spending while building a financial cushion.
Automate Your Finances
Have a small amount automatically transferred to your savings account each month or pay period without fail. This will establish the habit of saving or paying yourself first. If you have a recurring payment due each month, set up automated payments in your online Bill Pay to avoid missing a payment. Be sure to monitor your account daily to avoid overdraft fees.
Use Credit Wisely
Although a credit card can help build your credit history, it can also lead you into debt quickly. Only purchase what you can pay off each month. Think of credit as a tool, not extra cash.
Be Thrifty
Enroll in rewards programs, look for student discounts, shop around for less expensive cell phone plans, and above all – avoid peer pressure spending. If those Apple AirPod Pro wireless earbuds that everyone is sporting on campus don’t fit your budget, skip them.
Become Financially Literate
Financial literacy is a powerful skill. There are many resources to help students gain a better understanding of money and finances including Marine Bank’s blog, financial podcasts and books.