8 Financial Tips for New College Students

Financially, the world is an uncertain place for new college students. No one is sure about what the economy holds, and you might even be a little concerned about what life after college will hold – even though you are just beginning. The good news is that you can use your college years as a way to lay a solid financial foundation for the future.

Instead of waiting until after you graduate to start planning your finances, now is the time to get started. As you embark on your college journey, here are 8 financial tips to help you set your feet on the right financial path:

1. Open your own bank account: Now is the time to begin establishing a separate identity from your parents. If you have a join bank account with your parents, it doesn’t mean you have to close it. If you want to keep it open for the ease of access to funds, it’s not the end of the world. But you should also open your own account, and make that the place where you handle most of your transactions.
2. Start building credit – responsibly: A credit card can be a great financial tool, when used correctly. You can start building credit now, with the help of a credit card(if you don’t have a job, and you’re under 21, you will need a co-signer). You can also use a personal loan, or a car loan, to help you build credit. Responsible credit use now will make your life easier later.
3. Avoid debt as much as possible: You might need to borrow to pay for your education, but it’s best to have as little debt as possible. Look for ways to pay for schooling without using debt. And, when you do borrow, make sure you don’t go crazy. Remember: Just because you can borrow up to a certain amount, doesn’t mean that you should.
4. Earn money: A part-time job can really help during college. You can start an online business to provide income, or you can work part-time on campus. In any case, an income stream is important. Getting a B or two won’t be the end of the world.
5. Start saving/investing: If you have earned income, you can open an IRA. This tax-advantaged investment account will help you save for retirement. Now is also a good time to begin building an emergency fund. Start a habit of saving, and it will benefit you the rest of your life.
6. Create a spending plan: Whether you have a budget or a spending plan, the important thing is to know what you want your money to accomplish. Figure out your priorities, decide what items you want to pay for, and then create a plan for your money. Stick to your plan so that your necessities are covered, and the most important expenses are taken care of.
7. Look for perks and discounts: Many college towns offer special perks and discounts to students. Take advantage of these to save a little money, and keep to your budget. Coupons and sales can also help you stay ahead financially.
8. Network: Your ability to build relationships now can help your career later. Network with professors, alumni and fellow students. Be willing to lend a helping hand, and remember that the contacts you make now can help you later.