Seven college student money tips from financial experts could help undergraduates avoid costly mistakes and lay the groundwork for life after graduation, according to guidance compiled from advisers at Credit Karma and other financial wellness professionals.
Start with credit and a budget
Courtney Alev, consumer financial advocate at Credit Karma, said college is the ideal time to begin building a credit report. Credit scores range from 300 to 850 and influence access to car loans, mortgages and even auto insurance.
Alev recommends starting with a secured credit card, opened with a one-time deposit that acts as collateral, or a student credit card, which carries lower qualification requirements. The core rule: spend only what you can afford to pay off each month.
Budgeting matters even when income is irregular. Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance, advises students to divide monthly bills by four to set a weekly savings target. If rent is $1,000 a month, that means setting aside $250 each week.
‘Budgeting is simply creating a plan to get what you want with your money,’ said one adviser quoted in the guidance, identified only as Wilson. ‘Figuring out what you want, then the plan that you need to follow to get there.’
Savings, loans and making use of campus college student money tips
Before investing, Alev recommends building an emergency fund large enough to cover rent and essentials for a few months. ‘The power of that compounding interest and the growth of the economy can really pay off over time,’ she said, ‘but an emergency fund is going to serve your immediate needs.’
Student loans need attention while you are still enrolled, not after you graduate. Advisers say students should know how much they borrow each semester, their expected total repayment amount, and their projected monthly payments on leaving. ‘As long as you understand what you’re getting into and you’re making a plan for how to navigate and manage it, you’re an informed consumer of that debt,’ Wilson said.
Bryan-Podvin also encourages students to speak openly with friends about money, making it easier to decline spending that falls outside their budget without feeling pressure to overspend.
Phil Schuman, executive director at the Higher Education Financial Wellness Alliance, said university resources, including library, student life and recreation centre offices, are underused. ‘Their job is to help you figure out what the solution is to your question,’ he said.
On mistakes, Schuman was direct: ‘Give yourself grace. Nobody is perfect when it comes to their finances, so don’t feel like you have to be as well. Talk to somebody, acknowledge it, and then figure out what you can do moving forward to right the wrong next time.’
