5 Ways to Improve Your Finances as a College Student
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on Tuesday, August 27, 2024
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Financial Education
As summer winds down, many young adults are returning to college for the fall. Today, the average American student leaves college with more than $37,000 in debt, most notably from student loans. According to data from the Federal Reserve, US student debt currently sits around $1.56 trillion. Because of this, the young adults in your life may face more financial challenges in their pursuit of education than past generations.
“Teaching young adults to become financially responsible can pave the way to a lifetime of financial success,” said Sarah Gerstandt, Retail Banking Officer at United Bank & Trust. “Young adults need to be more conscious of expenses than ever before.”
Five Money Tips for College Students
1. Create a budget.
Creating and, most importantly, sticking to, a budget allows you to control where your money goes rather than leaving you wondering where it went. A budget is an effective tool to track and organize the money you make and spend. This guide from Federal Student Aid can be used as a starting point in building a student’s budget.
2. Apply for FAFSA assistance.
Make a note on your calendar to fill out the Free Application for Federal Student Aid (FAFSA) before starting college and every year while in school. This form determines eligibility for federal aid for current and prospective college students. It costs nothing to apply and can provide significant aid for many eligible students.
3. Explore scholarship options.
Along with FAFSA, scholarships are another form of financial aid. Scholarships may be offered based on a variety of criteria, including academic merit, athletic skill, financial need, and inclusion or diversity.
Utilize your college’s website or call their financial aid office to learn about the various scholarships they offer and apply for those for which you qualify. Many local organizations will offer scholarships for high school seniors; contact your school’s guidance counselor for help finding local scholarships.
4. Be discount obsessed.
Expenses can add up much faster than must young adults expect. Take advantage of free and discounted on-campus events and utilize the campus fitness center to save yourself from overspending on entertainment, fitness, and other activities.
Many companies have student discounts. Combine these discounts with sales or price match options to stretch your dollars even further. Check out Student Beans and UNiDAYS, two free apps that offer a variety of student discounts.
5. Explore classes on financial literacy.
Classes are one of the best ways for young adults to learn finance skills. Your college or a local community organization may offer free or low-cost classes to start your financial education journey.
Students can also sign up for a free CashCourse account. CashCourse is a project of the National Foundation for Financial Education and provides articles and videos educating individuals on topics like budgeting, filing taxes, paying rent, and securing financial aid and loans.
As a student, it can be intimidating to go off on your own and manage your finances, but putting some time and effort into understanding financial wellness can go a long way. Visit United Bank & Trust’s website for more financial education tips.