5 Financial Tips for College Students

College is often the first-time students are fully in charge of their own finances, and that freedom can quickly become overwhelming. A 2023 survey by U.S. News found that nearly half of college students own at least one credit card, with many carrying a balance month to month.¹ Learning how to manage money early can make a dramatic difference, not only while you’re in school but also long after graduation. These five financial tips can help you stay ahead and avoid costly mistakes.

1. Avoid the traps of credit cards.

Companies often market credit cards to college students as a way to build credit, which is important for future financial milestones like renting an apartment or getting approved for a car loan. However, it’s crucial to approach credit cards with caution.

If you need a credit card, only choose one with a $0 fee. Cards with annual or monthly fees can quickly become a burden, especially if you’re not able to pay off your balance in full each month. The idea of building credit while you’re still in college is smart, but it comes with risks. If you’re not careful with your spending habits, you could rack up debt that’s difficult to pay off. Use your credit card only for necessary expenses and always pay off the full balance each month to avoid interest charges. Responsible use now will help you establish good credit, making life easier after graduation.

2. Create a budget.

Budgeting is a foundational skill for financial success in college and beyond. Start by tracking your expenses to see where your money is going. There are many resources to help you get started, such as Beginner's Guide to Budgeting, and the Insights feature in Texell’s Digital Banking. These resources can walk you through building a basic budget and ways to improve your spending habits.

Dividing your budget into categories such as rent, groceries, transportation, and entertainment can show you areas of potential overspending. Adjust your budget as needed to ensure you’re living well within your means. Regularly reviewing your budget will help you avoid running out of money before the semester ends and set you up with good habits for the future.

3. Track spending habits.

Understanding your spending habits is key to maintaining financial health. Most banking apps now include analytical features that categorize your spending, making it easier to see exactly where your money goes each month. Tools like SavvyMoney in Texell’s Digital Banking and Copilot Money can further help you monitor your finances and stick to your budget.

By regularly reviewing your spending, you can identify patterns—such as frequent dining out or impulse purchases—that may be draining your funds. This awareness allows you to make informed decisions about where you can cut back and save more. Over time, tracking your spending will help you develop smarter financial habits and avoid unnecessary debt.

4. Share living expenses with roommates.

Living with roommates is one of the best ways to save money in college. While it might be tempting to live on your own in a nice one-bedroom apartment, the costs can be significantly higher. The Hill states that students in solo living situations pay approximately twice as much for housing as those with roommates.² Living alone means you’re solely responsible for utility bills, which can range from $60-$250 per month and may not be included in your rent. Not to mention, Wi-Fi isn’t cheap.

Being able to split costs with roommates can free up money for other important needs, such as textbooks or savings. Plus, living with others can provide social support and help ease the transition into college life. Just be sure to communicate openly about financial responsibilities to avoid misunderstandings.

5. Be mindful of how you’re using financial aid.

When you first receive your financial aid check, it’s easy to want to spend it on personal items. However, it’s important to remember that this money is meant to help you pay for books, tuition, and activities at school. Treat your financial aid as a resource for your education, not as extra spending money.

A good strategy is to use financial aid only for necessary school expenses and rely on income from a job for personal spending, such as eating out or taking a day trip with friends. Most scholarships and financial aid grants outline the things that the money can and can’t be spent on. Make sure to research what sort of aid you’re receiving, and follow their guidelines exactly as stated. By being intentional with your financial aid, you’ll ensure you have the resources you need throughout the semester and avoid financial stress.

College is the perfect time to build smart financial habits. Whether you’re budgeting for groceries, tracking your spending, or deciding whether to open a credit card, making thoughtful decisions now can help set you up for long-term success. Follow these tips to master your money skills while you’re still in school—your future self will thank you.

¹ Survey: Over 42% of College Students Have Credit Card Debt by Beverly Harzog from money.usnews.com.
² Here’s how much students pay per bedroom in America’s college towns by Adam Barnes from thehill.com.

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