Six Money Tips Every College Student Should Know

Take it from me, the habits you establish in college will stay with you — not just while you’re in school, but throughout your life. I am not a finance major (or anything close), but I’ve learned first-hand that successful money management can be an important ingredient to success in college.

Learning to keep track of my finances has helped reinforce the value of every dollar I earn or spend. Here are six of my best tips for establishing good money habits while you’re in college.

1. Budget, Budget, Budget

The most useful financial habit you can establish in college is putting yourself on a budget. You must find a way to live on less than you earn, because you need to build savings for an emergency. The key to a successful budget is to be honest with yourself, evaluate wants versus needs, and keep careful track of the money you are spending. (A budget doesn’t mean a thing if you don’t’ stick to it!) For many of us, this means learning to live a rich life while being frugal.

2. Cha-Ching! Find a Source of Income

Let’s face it: most of us will need a job while in school, to help pay tuition and living expenses. During college, I’ve had two paid internships and worked in my Intramural Sports department to help pay for my expenses. Through work, I’ve developed a new appreciation for how long it takes to earn a dollar, which has led me to making smarter and purchases.

3. Avoid Financial “Hangovers”

Just because it’s the weekend doesn’t mean you should spend more money. Extra expenses on concerts, dinners out, or clothes add up and should be accounted for in your budget. There’s nothing worse than checking your bank account Monday morning and realizing your unanticipated weekend spending left $15 in your budget for the coming week. Plan ahead, look for fun, inexpensive activities (including cooking in with friends) and go into the weekends with a limit on how much you will spend.

4. Stock Your Emergency Fund

No matter how much planning you do, there’s a good chance you’ll face an emergency at one point in your life, and it’s never too early to begin putting some “just in case” money aside. You may need to buy an airline ticket to visit a sick relative, or replace a stolen bike. Keep your emergency funds separate from your general account, making it more difficult to access.

5. Have a Plan

Before finalizing your college choice, know how you’re going to pay for it. Familiarize yourself with financial aid plans, scholarship opportunities and the repayment requirements on student loans. Having a financial plan will help reduce the stress of dealing with the cost of college.

6. Save Where You Can

Be a savvy spender. Any college student will tell you that a college discount is their best friend. Seek out stores, restaurants, and other businesses that give discounts. Instead of buying your textbooks, look at renting them or borrowing from a friend. Finally, don’t break the bank buying $3 coffees or needlessly eating out. Homemade coffee tastes just as good, and homemade food is often healthier and less expensive.

These little spending hacks can add up to big savings during your college years, and provide you with a great foundation as you head into life as an independent adult.

Emma Schaff will begin her senior year as a history major at Georgetown University this fall. She currently has a paid internship at Magnetar Capital. In addition to working with human resources, Emma provides communications support to the Magnetar Youth Investment Academy, a financial literacy program for high school students.