Being a college student and wanting to improve your finances is challenging. As you enter adulthood, there can be many questions about how to budget, handle finances, and save money while still being dedicated to your studies. Although students may tend to feel anxious about all of this, it’s a normal process that all young adults face.
Here are some steps you can take to help ease the stress of managing finances as a college student.
Follow These Financial Steps for Success
For many young adults, college is their first experience with managing money. Worrying about how to pay for school and bills can be stressful, especially if you don't feel prepared. However, with the right resources and tools, managing your finances as a college student is possible.
1. Create a Budget for Better Living
It’s important to track your income and expenses every month. This can help when creating a budget to better manage your finances. First, calculate your monthly income and identify all your monthly expenses such as rent, groceries, car insurance, etc. Then subtract your expenses from your income. When creating your budget, focus on the necessary expenses (basic needs) first to ensure you have enough money to pay for the things you need. Any money left over can be put aside in savings, used for going out, or for other fun activities.
Quick Tip: Peach State offers budget templates that you can use as a guide for saving, spending, and making managing your money easy.
Managing your money has never been easier!
2. Open a Savings Account and Save What You Can
It can be tough as a college student to find extra money to save when you're paying for school and other necessities. However, just putting 10 dollars into a Savings Account from each paycheck, can make a huge difference in the long run! Opening a Savings Account and setting aside whatever you can is extremely beneficial for many reasons, including saving for big future purchases or using it for emergencies.
Best Savings Accounts for College Students
There are many types of saving accounts to choose from, like a traditional Savings Account, Money Market Account, or Term Share Certificates (also called CDs). It’s important to research the ins and outs of each account so you have a better understanding of how each will benefit you and help grow your savings.
Here are a few examples of how a college student can benefit from each type of savings account.
- Traditional Savings Account: At Peach State, this type of account features a low $5 minimum balance requirement1, no monthly fees, and earns interest monthly2. It’s a great way to set money aside to pay for things for school or emergencies.
- Money Market Account: This account offers more earning power than a traditional savings. With competitively tiered rates, the more you save, the more you earn! It’s a great way to save for bigger short-term goals like a car, Spring break vacation, or to kickstart advanced savings for your future.
- Term Share Certificates (also known as CDs): These give you the earning power of a Money Market but with a set timeline to save. You put extra savings into the account, choose a term – at Peach State, they're as low as 6 months or up to 5 years – then set it and forget it! After the term is complete, you can cash out your savings, leave it, or get another CD. This is a great way to set money aside for your after-college needs like repaying student loans or getting an apartment.
Your money will always be accessible and safe when you open a Savings Account and become a member-owner of Peach State. All your deposits at the credit union are federally insured by the National Credit Union Share Insurance Fund for up to $250,000. Your accounts are also insured up to an additional $750,000 with coverage by Excess Share Insurance Corporation (ESI), a licensed insurance company, for a combined coverage of up to $1,000,000. With any of these Savings Accounts, you’ll be able to successfully save money for your future goals and needs.
3. Build Credit Responsibly to Create Future Opportunities
Building credit is one of the most important aspects to focus on when trying to figure out what financial decisions to make. A credit score is important for buying a house, rental applications, loan approvals, and could also impact the interest rates you’re going to have to pay in the future. If you build a good credit score, it could lead to better loan terms and lower interest rates. Having a credit card is a good way to build credit. It may be intimidating at first, especially if you don’t know how to properly use it, but if you make sure to follow the credit utilization ratio of staying under 30% of your total credit limit, payoff your balance every month, and never skip a payment, you’ll be on track to building a positive credit score in no time.
As a college student, you can use a credit card for simple purchases like gas, groceries, or even school supplies. Making responsible purchases with a credit card can positively impact your credit score and your life when the time comes to make bigger purchases.
Perks of using a Peach State Student Platinum Visa with Rewards for building credit:
- Build Credit and Earn Rewards: Even if you have no credit history, students can get a Student Platinum with Rewards Visa Credit Card that’ll help build credit and reward points that can be redeemed for cool merch, gift cards, travel, and more!
- Create Smart Financial Habits: Using a credit card responsibly as a college student can help you build positive financial habits for your future.
- Financial Security: Owning a credit card as a college student offers a sense of security by being a tool used to buy necessities.
4. Take Advantage of Financial Resources
Since managing personal finances isn’t a required college course, asking an experienced professional for help and reading financial blogs are great ways to gain more knowledge about financial topics!
Talk To Financial Professionals
If by any chance you want input from someone other than your family members or friends, financial professionals are able to help. They can offer guidance about the best products and services for achieving your financial goals. As a Peach State member, you can visit your local branch and speak to someone today. They’ll gladly assist you with any questions you have about your finances.
Quick Tip: As a Peach State member, you also have free access to BALANCE which offers additional financial resources and tools that can further help you prosper during your financial journey.
Scope Out Blogs
Blogs are a good resource to use when having doubts about certain financial topics or to gain a better understanding about them. Peach State’s Dollar & Sense Blog provides articles on budgeting, credit cards, college planning, and many more topics to help with your success!
Here are a few helpful blogs for college students and young adults:
Don't be Afraid to Succeed - Peach State is Here to Help
There’s a misconception that young adults should know what to do with their finances, how to manage them, and where to start but in reality, most are unsure. This can cause embarrassment and may hold people back from asking very important questions. However, there’s nothing wrong with asking questions and there are no wrong questions to ask. Not asking about important financial topics like budgeting, building credit responsibly, and saving for your future can risk hurting your finances and your future.
Ask a family member, a friend, or seek advice from a trusted financial professional at your local credit union to start paving the path for your financial journey. At Peach State, we care about our members, their financial well-being and want them to achieve success. We’d love the opportunity to answer all of your financial questions and help point you in the right direction for achieving your financial goals! Contact us today to get started!
1 An initial deposit of $5 is required to maintain your stake in the credit union, and there is a one-time membership fee ($5) and USA Patriot Act recovery fee ($5). All members must maintain a $5 balance in their Savings account to remain a member-owner and demonstrate regular activity in their account to keep it open. Other fees may apply.
2 You must maintain a minimum $100 balance in order to earn dividends.
