Starting college is an exciting time for self-exploration and independence, but the financial stress that comes with it is often overlooked.
The reality is that college is expensive. Even after financial aid, scholarships, and grants are applied, you’re still left with everyday costs. Groceries, transportation, textbooks, housing extras, and social activities can add up quickly, and usually aren’t covered by aid packages. On top of that, some students may leave college with thousands of dollars in student loan debt.
From the moment you open your acceptance letter to the day you walk across the stage, and even post-graduation, our credit union experts are here with tools and real-world advice to help you feel confident about your finances.
In this article, you’ll learn how to manage your money, minimize your stress, and build habits that support your financial and emotional well-being!
Creating Healthy Money Habits
Once major expenses like tuition and housing are handled, the focus shifts to navigating college life. This often means managing money more independently than ever before.
For many students, college is their first time experiencing true independence, and while that freedom is exciting, it also comes with learning how to be financially responsible. Consider these tips to keep your finances on track.
Create a comfortable budget
A strong budget balances your wants and your needs. Start by identifying your essentials (food, transportation, and school supplies) versus your leisure spending (streaming services, eating out, and entertainment). Here’s an example:
- You are a college student making $13 an hour, working 20 hours a week. Your monthly income would be around $1,125 before taxes. Let’s list out the average essential and variable monthly expenses of a college student, outside of tuition and housing.
- Transportation: $100
- Groceries: $200
- Personal items (toiletries, hygiene, household items): $50
- Phone bill: $60
- Streaming services: $30
- Entertainment & social activities: $100
- Total = $540 a month on expenses
- $1,125 (income) - $540 (expenses) = $585 remaining each month
Keep track of any income from part-time jobs, internships, or freelance work so you know how much money is coming in each month. From there, use any remaining funds to save, put towards your larger college expenses, or whatever other financial goals you have in mind.
Remember! Your budget should be flexible. If there is something you desire, find a way to fit it into your budget while staying within your means.
Be smart with credit cards
In the U.S., you must be at least 18 years old to open a credit card, which makes college a popular time to get familiar with how they work. When used responsibly, credit cards build credit, earn you cash rewards, and help increase your chances of getting approved for cars, apartments, and more.
The key is moderation. Keep balances low, make timely payments, and only spend what you have.
Take advantage of student discounts
There are tons of exclusive offers and deals for college students in technology, food, clothing, entertainment, and even travel. In most cases, all you need is your student ID. UNiDAYS is a free, digital platform that provides students with deals for over 300 brands.
While small savings may not seem significant at first, they can reduce financial pressure over time. Plus, who doesn’t love a good deal? Sign up for UNiDAYS to see where you can save!
Creating Healthy Money Habits
Several studies have found that financial stress among college students has been linked to anxiety, depression, poor academic performance, and even increased dropout rates. Even with responsible financial habits, balancing the everyday responsibilities of a college student can still feel overwhelming.
If stress begins to build, consider incorporating some of these strategies:
- Low-impact exercise, like walking or yoga, to release tension and improve sleep
- Spending time with friends and family for emotional support
- Taking short breaks from work or studying to recharge
As a young adult, managing finances will become a part of your routine. You can’t always change your financial situation overnight. Things like paying off debt or saving for a specific goal take time. As you’re working towards financial independence, it’s important to be gentle with yourself and implement things that keep your stress level down.
Have open conversations about money
College students aren’t the only group impacted by money – adults deal with it too. While you can’t escape the financial obligations of adulthood, you can be honest about where your finances stand. There are a lot of parents who are involved in their child’s college finances. If you fall in this category and are starting college soon, be sure to sit down with your parent or guardian to ensure you’re on the same page. Families can also speak to a trusted financial advisor for additional support and guidance.
Money can feel like a taboo topic to discuss, but it doesn’t have to be. The more open and honest you are, the more accountable you can be with your financial journey. No one is expecting you to have everything figured out right now, but that’s why having open dialogue is so important!
Exploring Support Options
Navigating the transition from high school to college can be a lot to balance, and it’s okay to ask for help along the way.
Between balancing coursework, exams, and part-time work schedules, it’s normal to feel overwhelmed. Because financial stress can directly affect both mental health and academic performance, speaking up early can make all the difference.
Don’t hesitate to use campus support such as financial aid offices, counseling services, and student support programs to see what they offer. In addition, we have financial experts available 24/7 to answer questions, provide personalized guidance, and help you make informed decisions about your money.
We understand how demanding college life can be, and your finances shouldn’t add to that pressure. Contact Elements Financial for support of all your current financial needs so you can focus on building the future you’ve worked so hard for.
