August 14th is National Financial Awareness Day

POSTED ON Aug 14, 2024

Becoming more financially savvy is one of the best ways to prepare for the school year ahead. The tips listed below can help current and future college students start off on the right financial foot, giving them the head start they need to manage money and finances. Here’s a guide to navigating college spending.

Create a college living budget, even if it could be better. Building a budget will be challenging, but don’t let the quest for perfection get in your way. Creating an estimated college spending budget before you leave home and fine-tuning it once you arrive on campus can give you the financial jump-start you need.

Apply for grants and scholarships before taking on a lot of debt. Many future college students need help accessing the free money they have coming, which can increase the student loans they ultimately take on. Before signing a single loan document, ensure you have exhausted all grants, scholarships, and other funding sources you will not have to repay.

Understand the terms of any college loans you sign on to. If you need to finance your college years with debt, ensure you and your parents understand all the terms. Read those documents carefully, ask questions, and seek the help of a professional if necessary.

Take on a part-time job whenever possible without endangering your schoolwork. Juggling a job and college classes can be challenging, but that does not mean you shouldn’t try. At the very least, a summer job will give you money to live on; more than that, it might help you reduce your college loan debt and build up your emergency savings.

Consider adding a financial literacy class to your course load. Ask your counselor about signing up if your college offers a practical finance or financial literacy course. Understanding how money works will be necessary for your future well-being, even if you are not an economics major.

Be careful about credit card offers. Credit card companies love to target college students, enticing them with free campus swag and other goodies. Unfortunately, young people do not always use their credit wisely, leaving them with debt they cannot repay.

Build credit—and financial knowledge—with a secured credit card. Instead of signing up for a credit card in exchange for a free T-shirt, ask your parents about a secured credit card. A secured credit card is linked to a bank account, so you can limit your spending and reduce the risk, all while building up your credit score.

Ask your parents about funding an IRA if you have a part-time job. It’s never too early to start saving for the future, and setting up an IRA is one of the best ways to build your wealth for the long term. If you have employment income, ask your parents to help you set up and fund an IRA. They may even chip in—giving you a jump start on your savings and practical investment experience.

Monitor your credit score. It is never too early to start building credit; monitoring your score is one way to track your progress. Paying on time can boost your score, so track it over time and watch it rise.

Continue reading:

10 Finance Tips Every Student Should Know

From filling out the FAFSA® form to beginning repayment, there’s a whole lot that goes into getting a loan. Check out the process 👇 pic.twitter.com/yGlGm4uFBG

— Federal Student Aid (@FAFSA) May 24, 2024

Accepting loans for college? Consider federal loan limits and their terms when creating your budget. Tip: Think of the “U” in unsubsidized as standing for “you” pay the interest. https://t.co/P4Sm8BeKvS pic.twitter.com/MMeDxSI6li

— Federal Student Aid (@FAFSA) June 14, 2024

Federal student loans are disbursed by the government, while private loans are offered by private organizations such as a bank. Private student loans are generally more expensive than federal student loans. Check out some of the differences below! 👇 pic.twitter.com/yqJ6WJipjl

— Federal Student Aid (@FAFSA) July 9, 2024

We’re biased, but we think checklists are a great place to start to organize your higher education journey: https://t.co/jeWdrRXOhO pic.twitter.com/PEZfaogKJJ

— Federal Student Aid (@FAFSA) July 11, 2024

And finally, budgeting! It’s a skill that you’ll use even after college, and learning how to do it will set you up for a lifetime of financial success. 💰 Find our budgeting tips here: https://t.co/Ir55QZXEUL pic.twitter.com/oG9MriRorH

— Federal Student Aid (@FAFSA) July 11, 2024