10 healthy financial habits for college students

By Kate Gillan | Citizens Staff

We totally get it. College is a time for fun and learning all about a subject or major that interests you. You may be super busy, and your financial future may not be top of mind. However, the sooner you start your financial wellness journey, the better, and it’s ok to start right now, wherever you are on your personal roadmap. College can be a great time to learn how to manage your money and build spending habits that will help set the stage for financial success for the rest of your life. Read on to learn 10 money management tips for college students to set yourself up for success. You’ll learn how making even the smallest adjustments to your financial decisions can have big impact when you graduate.

We know you have a lot on your plate. So let’s just take it one step at a time. Before you can start to develop good financial habits, take a look at your basic income and expenses. Here are some things to think about:

• How much do you have in your student or teen checking account, as well as savings?
• How much do you have in student loans?
• Are your parents or guardians pitching in financially? If so, how much? 
• How much is your meal plan at school?
• What are your basic living expenses? (rent, food, transportation, entertainment)
• How many financial accounts and credit cards do you have?

In addition to your studies, a large percentage of college students also work part-time jobs. In fact, according to the National Center for Education Statistics, in 2020, the percentage of undergraduate students who were employed was 74% among part-time students, and full time students with jobs totaled 40%. You are busy. But instead of simply trying to stay afloat, it’s beneficial to create a budget, especially if you are saving for any long-term financial goals such as getting your own apartment when you graduate, buying a car or paying off student loans.

Start by assigning each category of your expenses a dollar amount, and work toward sticking to those numbers so you stay within your budget. A monthly starter budget might look something like this:

Monthly Expenses:

Consider living further from campus, getting a roommate, and taking public transport if you feel that’s an option.

A meal plan offered by a college is usually the easiest and cheapest option. If you’re living off campus, buy groceries and cook your own meals. Takeout and delivery can really add up. Also, keep in mind meal plans are often still available even if you live off-campus.

Sharing a ride with friends can be more economical than riding alone. But if your rides are adding up, consider getting a bicycle, taking public transportation (if it feels safe) or even pooling money with roommates for a used car to share.

• Cell phone bill: $85-$125

Are you sure you are using all the data you’re paying for? Sometimes simply calling your provider and asking how much data you’re burning through can allow you to lower your plan. All the bells and whistles can add up.

• Subscriptions to streaming services: $100

It’s easy to accidentally sign up for too many streaming services. Be sure to do an inventory every month to be sure you don’t have ones on your account you are no longer using.

While gas prices go up and down, the amount you spend will depend on how often you use your car. If you are going somewhere local, consider getting in your steps or using a bicycle.

Who doesn’t love going to concerts? Ticket prices can add up, so think about attending shows right on-campus and supporting your classmates in the theatre program. Also, instead of big-name acts, there are often up-and-coming musicians performing in local cafes. Many are free or have open mic nights showcasing great local talent (also free!).

Choose a student-designated checking account, which could help you with features such as no overdraft fees and unlimited ATM transactions on any machine nationwide (so you can go back and forth from campus to home and not get hit with a dumb charge when you use a different bank’s ATM!).

Even if your college-student budget is just enough to cover your expenses, you’ll still want to open a student savings account. Look into a student high yield savings account so that you can earn interest on your deposits. Also, many banks offer incentives, such as cash, upon opening an account that will help you get closer to your financial goals, whether that’s buying a new car, moving into your own apartment, or building an emergency fund. Student savings accounts can have awesome perks such as getting paid early, where your paycheck hits your bank account 2 days earlier (allowing you to both budget for future goals and plan what concert you’re going to this weekend!).

Adulting can be hard, and setting aside money or remembering to pay bills is even harder. Try an app on your phone, tablet, or even on paper, to create a holistic digital budget.  

Automating your savings and bills can make everything seem more manageable. For example, you can set up direct deposit with as little as $20 from your checking account to your savings account each month. You can also automate recurring bills like credit cards to at least pay the minimum each month. Just keep tabs on your finances so you don’t overdraft your account.

You’re investing significant funds to attend school. It only makes sense that you take advantage of student discounts whenever possible. You may get discounts on food, movies, and transportation, for example. Not sure if there’s a discount offered? Just ask! Keep your student ID on hand when making purchases.

When it comes to managing money in college, be mindful of small, recurring expenses and fees that can add up over time. Look through your bills for expenses such as streaming services or subscriptions. Do you really need them? Are they bringing value to your life? If not, ditch them. Another idea is to split the subscription with a roommate(s). When it comes to cell phone bills, streaming platforms, etc., it’s always good to check whether you can lower your bill with any new promotions. Simply calling customer service and asking if you’re receiving the lowest rate possible can cut a few dollars off your total. When using any new services, be sure to read the fine print so you’re not hit with any unexpected fees.

Evaluate your essentials — such as rent, food, and transportation — as well as non-essentials. Here are a few quick ideas for earning extra dough other than working a million hours outside of school.

• Food, transportation, and housing: Can you add another roommate, or find ways to save on meals or groceries? Is using public transit or walking or biking to campus or a job a viable option compared to driving or using a ride-share service?
• Social media influencer: Maybe you take amazing photos, and your friends keep telling you you’d be great as a social media influencer. Why wait for graduation when you can make money and learn a skill for your resume now? Many companies have been hatched out of student dorms, and there’s an entrepreneur lurking inside every one of you.
• Dorm cleaning service: Maybe you’ve noticed your classmates (ahem) are lacking basic cleanliness and never pick up their rooms, but your aunt ran a cleaning service and you used to help her after school and know how to run a business.
• Babysitting, house sitting, pet sitting: If you live off-campus, you might live amongst families looking for a sitter. You can always go out one weekend night and reserve the other for sitting. Bonus points if they feed you dinner and you can save on a meal! Also, consider house sitting or pet sitting.
• Work-study: There are many work-study arrangements where you can save money, including working in the dining hall, being an RA for free housing, working elsewhere on campus, or helping a professor as a student teacher or with additional research.

• Consider a 401(k): When you start your first job, your employer may offer an employer-sponsored retirement plan, like a 401(k). Basically, whatever money you put into it from your paycheck, your employer matches (free money, yay!).
• Timing is everything: The most important thing to remember when thinking about a retirement savings plan is the sooner you get started the better. You want the most amount of time to save up toward your future goals.
• Save your bonus: You’ll also want to consider any bonuses from a first job or cash windfalls for this account, rather than putting them in checking, where they might be spent.

While saving for retirement while still a college student may be tough, it’s a great idea to start educating yourself on your hopes and dreams surrounding retirement and how much of your paycheck you want to dedicate toward it, upon landing your first job. You might want to read up on the F.I.R.E. movement, which stands for “Financial Independence, Retire Early.” Those who take up this lifestyle often save aggressively, with the goal to retire early, say by 50, or in extreme cases, 40. While the average person can’t commit to saving that much for retirement due to other bills, it’s a thought-provoking concept.

Your credit score will factor into everything, from renting an apartment to buying a car to purchasing your first home. Luckily, there are many ways to build credit while still a student.

If you have student loans, consider making small payments of $25-$50 per month (or twice a month) while you’re still in school to pay down interest and have some positive repayment history on record. The two best ways to grow your credit are to make payments on time and to borrow only what you need. You can also check your credit report for free at

According to the  Washington Post, one in every five Americans currently has student debt. Once you finish school and the grace period is up, you’ll have to start making student loan payments. It may seem jarring to go from paying nothing to paying several hundred dollars a month. If you look at your total projected debt, repayment plans, and interest, you can create a long-term debt payoff plan that puts you in a good place after you graduate. Be sure to also look into refinancing your loan, making payments while you’re still in school, signing up for autopay for a discount, or even looking for a company for your first job that pays off some of your debt upon signing an employment agreement. Lastly, be sure to not take more loans than you need.

As a college student, you may not have a ton of extra money now. But making smart decisions about how to pay for college could help you keep more of your hard-earned money after you graduate. We’re here to help you understand all the financial options available to you and learn more about ways to pay for college. Just check out our Student Loans — and hit us up on chat.