A Crash Course in Finance for College Students
Whether you’re just starting college or about to finish up, it’s good to know how your finances work and how to make the most of your banking experience. With all of the options out there, it can be tough to decide which financial institution
to choose and which one will best fit your needs as a student. Here are some tips to help you thrive financially during college.
Many young adults will open an account at the same credit union or bank their parents use. But what happens when you move away from home? Be sure to check if there is a branch, credit union service center, or surcharge-free ATM close to both your hometown and school. There will be plenty of times when you need cash and want to be close to a location that won’t charge extra fees when withdrawing money or making a deposit.
Numerous websites compare brick-and-mortar credit unions and banks to online financial institutions. Research before opening an account with any establishment—there could be hidden fees or minimum balance requirements, and these minimums could be hard to meet as a college student. To get the best deals and best interest rates, consider opening a checking account in one place and a savings account in another. As long as you can keep up with your earnings
and pay your bills on time, separate accounts shouldn’t
be an issue.
Save Money Now
If you’re taking out student loans, don’t wait until you’re earning a real salary to pay them off. Open a savings account with high interest rates and no fees. There will be plenty of expenses throughout your college years, so there may not be a lot of money to save up. However, a little savings here and there will eventually add up and help pay off those pesky loans in the future. Or, better yet, start chipping away at your loans while in school—this can save you money in interest in the long run.
Get a Flexible Job
You may think there isn’t enough time in the day with classes, studying, activities, and sports, but there is always time to get a flexible job. Even if it doesn’t pay much, it’s better than having no income. Some schools offer student work programs or federal work study and have jobs that will work around your class schedule. Some schools will even give you free housing or cut down on housing costs if you become a resident assistant. If you feel comfortable sharing your car, you could become an Uber or Lyft driver and work for yourself whenever you have the time. There are also plenty of odd jobs worth considering. Ask your parents if they know anyone who needs house sitting, dog walking, or babysitting. These don’t take up much time and are relatively easy ways to make money without making a full-time commitment.
Create a Budget
Even if a job is out of reach, talk to your parents, guardians, or whoever is helping pay for school about setting a budget and sticking to it. College is about new experiences, so make sure to factor in a percentage for entertainment and spending money. Make a list of expenses like books, supplies, groceries, bills, etc., along with other things you may need money for, like events, shopping, and eating out. Although, if you do have a job, put a percentage of your paycheck aside into a savings account—you’ll thank yourself later.