Financial Tips for Students

Steps you can take today to set yourself up for future financial success.

Create a budget.

This is the first step to building a solid financial foundation. Evaluate your spending patterns and determine the categories you find yourself spending the most in and where you can cut back. Determine what you can realistically afford to spend and create a budget that accounts for your spending tendencies. Make it a habit to regularly compare your actual spending versus your budget. If adjustments are needed, alter them. The budget you create the first time around will most likely not reflect your needs a few years or even months down the line.

Minimize debt.

While some form of debt is unavoidable for many students, do whatever you can to minimize it. Don’t take out a larger loan than you need. Make additional payments whenever you can and pay back loans as quickly as possible to lower accumulated interest.

Build credit.

It is important to start building credit. If you don’t have a credit card yet, get one as soon as possible and use it judiciously. Be one of the first to get in on the next generation of credit cards that doesn’t require a credit score such as TomoCredit’s. A high credit score and long credit history will help you later on when you are looking to rent, purchase a property or finance a car purchase by securing you a more favorable borrowing rate.

Start investing.

Use time to your advantage. Start investing as soon as possible to let your money grow over time. If you have a job or paid internship, start investing in a retirement account if you haven’t already. Even if your company doesn’t offer you the option of enrolling in its 401k plan, you are still eligible to open up an individual retirement account such as a Roth IRA. While you still have many years to go until retirement, a little invested now will go a long way.

Start saving.

Don’t overspend. Save where you can. Even if you’re only able to save a few dollars a week, that will add up. Start an emergency fund that covers at least a few months of expenses just in case. And finally, as students, make sure to take advantage of student discounts whenever you can.