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.

New York University—Shanghai Campus

Shanghai, China


Maya Ingraham

Maya Ingraham

October 2021 Mini Scholarship Winner, Class of 2022

CollegeXpress has given me more confidence in my college process. With easy-to-access resources and guidance such as the CX Weekly Roundup, I have been able to find the best colleges for me. Most importantly, there’s a surplus of scholarship opportunities for every student to support their education.

Lydia Huth

Lydia Huth

Student, Campbell University; CollegeXpress Student Writer

I discovered CollegeXpress while embarking on my college search journey as an excited—but scared and way confused—high schooler without a counselor or college-bound sibling to give me advice. Let me tell you, I’m so glad that I stumbled on this community! CollegeXpress helped me find potential colleges and keep application deadlines straight. It gave me a great list of scholarships, and the blogs and emails made me feel like I wasn’t going it alone. Almost three years later and with freshman year of college down, I still love the CollegeXpress vibe so much that I’m writing for them. I’d recommend this site to anyone!

Heaven Johnson

Heaven Johnson

Back to School Scholarship Winner, High School Class of 2023

I’d like to thank everyone on the CollegeXpress team for their generosity. Not only have I been awarded this scholarship, but CollegeXpress makes it easier to apply and gives amazing tips for schools and scholarships. I am extremely grateful as this will help with my schooling and allow me to be able to enter into the field I’ve been dreaming of all my life. 

Elizabeth Stafford

Elizabeth Stafford

High School Class of 2021

As a UK student moving to California due to my dad's job in the military, when I first signed up for CollegeXpress a few months ago, the college process ahead seemed daunting and incredibly stressful. That all changed after I started to explore what this website had to offer. Not only was I helped by the vast array of resources available to me, but through being a CollegeXpress member, there have been so many more benefits. There have been emails with college tips—all of which I found incredibly helpful—as well as invitations to events and notifications of scholarships that'll make college possible for me. Overall, I'm very grateful to CollegeXpress for all of these things and more. Not only have they helped me grow my understanding of the college process, but they've also helped me to grow as a person, giving me new skills that I can take with me through life.

Rayan Hamdan

Rayan Hamdan

High School Student

I joined CollegeXpress just a few months ago. I had been struggling with severe anxiety, causing me to not be able to tour schools and make sure a college would be perfect for me. I came across CollegeXpress one day when I was searching for colleges online, and it completely changed the game. I was easily able to choose colleges that would suit me, and I also entered a few giveaways! Thank you so much!