5 Smart Money Moves Every College Student Should Know
5 Smart Money Moves Every College Student Should Know
Transitioning from high school to college is an exciting time for new students, but it can also be overwhelming especially with rising tuition costs. That’s why learning how to budget, save, and build credit early is one of the smartest things a student can do.
Why Financial Literacy Matters
With the average student loan debt being $41,600 in 2025, learning how to budget and save has never been more crucial. Some common financial mistakes that we see college students make is falling into credit card debt early. This can damage credit scores, leading to higher interest rates on future loans for important expenses like education or a car.
Actionable Financial Tips
- Create a Simple Budget
Use the 50/30/20 rule: 50% of your income goes toward needs (like rent or food), 30% to wants (going out or streaming services), and 20% to savings. This is a simple rule that can help you stay in control of your money.
- Start Building Credit Responsibly
When you open a credit card, it’s important to remember making payments on time. Small things like setting a reminder in your phone can go a long way in saving you from the mistake of missing a payment, which can negatively affect your credit score.
- Understand Student Loans
There are subsidized and unsubsidized loans, and it’s important to understand the difference. Subsidized loans are usually a better option for students because the government pays the interest while you’re in school or during deferment. Unsubsidized loans, on the other hand, begin accruing interest immediately after disbursement, increasing the total amount you’ll owe over time.
- Build an Emergency Fund
Start small. A full emergency fund can feel daunting, but small milestones like $500 to $1000 is a great start for students. Setting up an automatic transfer from your checking to a savings account helps build money over time. Even if it’s just $10 per week; that’s over $500 in a year!
- Don’t Be Afraid to Ask for Help
Learning how to save can be challenging, but with the right tools and guidance around you, your future self will thank you for learning early.
Take Control of Your Financial Future
Learning how to manage your money now can set you up for long term financial success. And don’t forget, you’re not alone. At Universal 1 Credit Union, we’re here to support you with tools and tips to help you succeed. Stop by or visit us online to explore our financial resources such as:
Practical Money Skills: Interactive financial education tools and resources
U1 Tips: Our Tips page covering topics from savings to retirement
U1 Videos: Our video library for how-to financial education
U1 Blog: Discover our library with additional topics designed to help financial wellbeing.
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