10 Smart Financial Tips Every College Student Should Know
The moment you’ve been waiting for has finally arrived — your college years! From new friends to new classes and maybe even a new address, there is so much to look forward to. However, amidst all the excitement, it’s important to remember a key part of college: managing your money.
Whether you’re preparing for your first year on campus or have already completed a few semesters, building strong financial skills now will benefit you well beyond graduation.
So, before diving into this new chapter, check out these 10 financial tips that can help make college more affordable, keep your budget on track, and set you up for success in the future.
1. Apply for financial aid early
If you’re looking for financial resources to help you pay for college, completing the Free Application for Federal Student Aid (FAFSA®) is a great place to start. Many colleges use your FAFSA to determine how much financial aid you’re eligible to receive, which could include grants, scholarships, work-study funds, and loans. Before applying, you can also use the Federal Student Aid Estimator to determine what you may be eligible to receive.
Also, once the FAFSA becomes available for the upcoming school year, the sooner you can apply, the better. Early submission helps increase your chances of securing as much federal aid as possible.
To learn more about the financial aid process and view important FAFSA deadlines, visit studentaid.gov.
2. Know what student loans you owe
Like many students, you may need a student loan to help pay for college expenses. Whether you have a federal student loan or it’s through a private source, such as a bank, credit union, or state agency, you should know and understand:
- What you’re borrowing
- The interest rate
- Whether the loan is federal or private
- When repayment begins (often after graduation)
Understanding the terms of your loan will help you plan for the future, avoid surprises, and ensure that you repay your loan within the allotted timeframe.
If you’re considering a student loan, don’t forget to check out our affordable options in partnership with ISL Education Lending to help cover your college expenses.
3. Create a budget that works for you
Managing your income and expenses might not seem exciting, but by creating a budget, you’re helping to ensure you have enough money each month to cover your costs.
Start by listing all of your sources of income, which may include your paycheck, financial aid, or support from family. Next, compile a list of your expenses, such as tuition, books, food, and transportation.
You’re probably thinking, “Well, what about setting aside money for ‘fun’ spending?” You should also put this into your budget, but remember to set aside a reasonable amount.
Need help creating your budget? Establish a 50/30/20 budget in three simple steps.
4. Remember to spend wisely
College offers many spending opportunities, from late-night snacks to shopping with friends. While treating yourself is okay, learning to spend wisely is one of the most valuable skills you can develop.
For example, consider buying used versus new college textbooks. Rather than eating out every night, take advantage of your school’s meal plan and limit dining out to once a week. You should also take advantage of student discounts when you can. These small budgeting habits can lead to significant savings over time.
5. Keep an eye on your accounts
Your checking account is likely what you use to make everyday purchases, so it’s important to check it regularly — ideally, once a day. This simple routine helps you stay on top of your spending, avoid overdraft fees, and quickly spot any unusual activity on your account.
With a Connexus Checking Account, you can easily monitor your balance and transactions using our Digital Banking platform. It also offers a Spending Activity tool that shows exactly where your money is going, making it easier to stick to your budget.
Don’t have a checking account? At Connexus, we offer three Checking Account options with several perks so you can choose the account that’s right for you.
6. Get into the habit of saving
Saving money in college might not be at the top of your list, but it is a powerful habit you should build early on. Even small contributions to a savings account can add up over time and provide a safety net for unexpected expenses.
Start by setting a simple savings goal, like $10 a week or a percentage of your paycheck. To make saving easy, you can even automate it so a portion of your income is transferred directly from your checking account to your savings account.
If you’re ready to start setting money aside but don’t have a savings account, check out our Simply Savings Account today.
7. Start building your credit in college
While you’re likely not thinking about your credit score right now, it will play a big role in your future. Your credit score can affect your ability to rent an apartment, buy a home, get an auto loan, or even land certain jobs.
One of the best ways to start building credit in college is by using a credit card responsibly. Here’s how:
- Find a card with minimal or no annual fees and a low interest rate. Some cards even offer reward options, but don’t stretch your spending just for the rewards.
- Pay off your full balance every month to avoid interest.
- Never max out your card — keeping your balance low helps your credit score.
- Include your credit card purchases in your budget to account for those expenses.
Learn about Connexus Credit Card options.
8. Set up direct deposit
If you’re working a part-time job while in college, setting up direct deposit is a smart option. With direct deposit, your paycheck goes directly into your checking or savings account, giving you quicker access to your money.
Here are the steps for setting up direct deposit:
- Ask your employer for a direct deposit form. If they don’t have one, you can also ask your bank or credit union.
- Fill in your account information, including your bank or credit union’s mailing address, your routing number and account number, and the type of account you have. Some forms may also ask for your Social Security number or mailing address.
- Attach a voided check or deposit slip, if required.
- Submit the form to your employer.
9. Protect yourself from scammers
Unfortunately, college students are frequent targets for scams and identity theft. To protect your personal and account information, you should use strong passwords, regularly review your account statements for any unusual activity, and exercise caution if you receive an email, phone call, or text message that seems suspicious. You should also avoid sharing personal information online.
For additional tips to help lower your risk of being scammed, visit our Security & Fraud Center.
10. And most importantly, have fun!
College is a time for learning, new adventures, and making memories. With these smart financial tips, you can worry less about your finances and enjoy the experience.
And remember, we’re here for you. Whether you have questions about student loans, opening an account, or managing your budget, you can contact us, and one of our team members will be happy to assist. You can also download these tips as a checklist to help you stay on track for financial success. We’re cheering you on as you take this next step!