Financial Wellness Tips for College Students, Present and Future

POSTED ON Aug 30, 2023

Financial illiteracy is a widespread problem in the US and other countries, affecting people of all generations. However, young people are particularly vulnerable.

If you have a college-bound young person in your home, it’s important to equip them with financial wellness tips to help them navigate this new stage of life.

Firstly, encourage them to create a college living budget, even if it’s not perfect. Having an estimated spending budget before leaving home and fine-tuning it once on campus can give them a financial jump-start.

They should also apply for grants and scholarships before taking on debt, as many students miss out on free money they’re entitled to.

Before signing any loan documents, they should make sure they exhaust all grant and scholarship options. If they do need to take out loans, it’s crucial to understand the terms and seek professional help if necessary.

Taking on a part-time job during the summer or finding a balance with schoolwork can help reduce loan debt and build emergency savings.

Encourage them to consider adding a financial literacy class to their course load, even if they’re not an economics major. Understanding how money works is essential for future financial well-being.

They should also be wary of credit card offers, as many companies target college students with enticing deals.

Instead of signing up for a credit card in exchange for freebies, they can build credit and financial knowledge with a secured credit card linked to a bank account.

If they have a part-time job, ask their parents about funding an IRA to start saving for the future.

Investing in rental real estate could also be a smart solution to reduce living expenses and gain practical experience.

Finally, it’s essential to monitor their credit score and track their progress over time. Being financially savvy is a skill that must be learned, and helping college students develop this skill is one of the best presents you can give.