5 Financial Strategies You Should Learn Before College | CollegeXpress
Hand putting coin in small jar with sprout, 2 more coin jars with bigger sprouts

5 Basic Financial Strategies You Should Learn About Before College

Many students don't have much experience managing money and finances, but you should understand these five financial topics before you head to college.

Students probably aren't thinking much about the academic year during the summer, but there are a few things they should consider before they tackle the college experience. Living and working on a college campus will be an entirely new experience and present a unique set of challenges for students to tackle in order to be successful. One of the things college students don't have a lot of experience with is managing money and dealing with financial topics in general, but there are definitely a few things they should know before they start managing their own money.

1. General personal finance

Some students will have had a job in high school, so they might already have a student bank account and know the value of a dollar. Other students will be dealing with their own money for the very first time as new adults. It's essential for college students to learn a little bit about personal finance so they can choose the right student loans, work the appropriate amount of hours at their part-time job, and balance their financial and academic obligations. Students who know a little bit about how to manage money will be a lot better off in the long run and have fewer unpleasant surprises waiting for them upon graduation.

Related: 5 Money Skills Students Need to Learn for Financial Stability

2. Opening a bank account on campus

Most college campuses have a bank branch on campus utilized by teachers and students alike. Students should consider opening an account on campus or working with a financial institution that has a bank branch and ATM access on or very close to campus. Most students will not have a car their first year of college and will need access to their bank or credit union within walking distance of their dorm. It's also important to avoid unnecessary ATM charges when taking out money from a competing bank branch, because every dollar counts when it comes to student living.

3. Avoiding unnecessary fees

Students learning about finance for the first time often get stuck with totally unnecessary charges because of a lack of planning. Although they can certainly learn through trial and error, it’s better to learn the easy way—through organization—how to avoid the most basic financial pitfalls. For instance, students can purchase overdraft protection or check their account balances regularly to avoid overdrawing funds they don't have. Another issue for students and graduates alike is dealing with credit card interest charges. It's best to avoid paying the minimum on a credit card whenever possible. However, not all credit cards are equal, and students should learn which card will give them the best deal for their personal circumstances.

Related: A High School Starter Guide to Financial Responsibility

4. Creating a reasonable budget

Creating a reasonable budget is one of the most difficult things a new college student will do, but it's also one of the most essential. Students need to be able to balance their financial tasks with the number of hours they will work at their part-time job and the amount of debt they are likely to incur once they graduate. Students also need to eat, purchase books and other learning materials, and live in student housing while they're at school. There are a lot of financial planning tools available that can help students create a budget that meets their personal circumstances and allows them to focus on learning and getting good grades.

5. Credit management and avoiding debt

Although a few lucky students will be able to avoid student loans altogether, most students will incur some amount of college debt. However, some loans give students very reasonable rates, while others charge an arm and a leg in interest rates. Students can also get into trouble with credit card debt, so it's important to learn how to manage credit and avoid unnecessary fees whenever possible. It's much easier to learn how to cope with these issues before going into debt rather than waiting to deal with it after graduation.

Related: Understanding the Dangers and Benefits of Credit Cards in College

The only way to ease yourself financially is to be smart, do your research, and actively look for ways to save money. Budgeting and money management are skills you can have at your fingertips just by putting in a little bit of effort. And that little bit of effort will go a long way in saving you money and energy.

Practice your organizational and money-calculating skills by using our Scholarship Search Spreadsheet Template to ramp up your scholarship search for college!

Like what you’re reading?

Join the CollegeXpress community! Create a free account and we’ll notify you about new articles, scholarship deadlines, and more.

Join Now

Tags:

Join our community of
over 5 million students!

CollegeXpress has everything you need to simplify your college search, get connected to schools, and find your perfect fit.

Join CollegeXpress

College Quick Connect

Swipe right to request information.
Swipe left if you're not interested.

Texas Christian University

Fort Worth, TX


Hailey Riddile

Hailey Riddile

High School Class of 2021

CollegeXpress has helped me find scholarships to apply for and look into more colleges. While there are many websites similar to CollegeXpress, every website is different, and I've found a lot of good insight on this website. Receiving emails from CollegeXpress about scholarships is extremely useful, and getting insight about colleges near, far, and anywhere in between helps me narrow down my choices to what I want, which is also super helpful. The articles are always really good reads, and I can't stress enough how helpful this website has been to me. Anything related to college is beneficial to me as a senior, and I have learned lots of useful things to help me on my college journey this year.

Amelia

Amelia

High School Class of 2023

CollegeXpress helped open me up to many colleges that fit my interests. I’m only a sophomore in high school, so I like having a lot to look at, and CX does a great job of picking colleges that meet my wants. It's a great website that I'll continue to use until it comes time for me to apply for colleges. I also like that it notifies me through email with options to look at. Thanks CX!

Ida Akoto-Wiafe

Ida Akoto-Wiafe

High School Class of 2022

I wanted a school that wasn't too far away from home and could provide me with a full-ride scholarship. CollegeXpress helped me put into perspective the money I had to pay to attend those schools, which ultimately drove me to choose to attend a community college first to get used to being in college before transferring to the University of Michigan–Ann Arbor, one of the colleges I was able to research further on CollegeXpress.

Rose Kearsley

Rose Kearsley

High School Class of 2021

CollegeXpress has seriously helped me out a lot, especially when it comes to scholarships and studying for tests like the ACT. I also really love the financial help. It’s a little harder to pay because I live with a family of eight, so any help is appreciated. Thanks for this opportunity!

Caio Matos

Caio Matos

High School Class of 2022

Starting the college admissions process as an international student was daunting. Thankfully, CollegeXpress was the first website I used for that cause and it helped me so much, from knowing where to start to deciding what my next move would be. I'll take a gap year, but I’m certainly using the website again when applying for fall 2023.