And just like that, it’s time to start thinking about heading back to school again! Summer may be passing before our eyes, but that means that the opportunities to learn, grow, and thrive inside and outside the classroom are upon us.
For some, this transition may be bigger than for others. If you are heading off to higher education for your first year (or any year really), this time of year comes with a bit more responsibility. Living without your parents leads to many different areas of newfound freedom… and with freedom comes responsibility.
For instance, you are now more empowered than ever before to take on the crucial tasks of all things financial, like budgeting or staying out of debt. Responsibilities such as learning to understand and manage your own financial well-being can be daunting, but Credit Union of Denver has your back! So, here are five tips to help you manage your finances as a student, or as anyone, really.
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Track your spending
Tracking where your money is going is a great first step to learning financial responsibility! Not only does this help you keep track of the amount you are spending, but you will become more aware of the value that your money holds.
There are many options available to help you keep track of your purchases, from spreadsheets to mobile phone apps. Also consider opting into eStatements, a paperless and convenient way to get a supplementary read on your spending! Paired with a dedicated spending tracking strategy, you will be comfortable and knowledgeable of your finances 24/7.
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Explore your student loan options
Many students must take out loans to support the pursuit of their degree, but it’s hard to know which to choose. Make sure to explore all your options, including federal vs. private loans. Our Student Loan Marketplace allows you to do just that, with no hit to your credit score! Learn more about personalized loan rates to ensure that you and your support system are making the right choice!
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Prioritize your needs over your wants
We know this suggestion is hard, but it’s also very effective! Before any purchase, take a moment to think. Ask yourself if this is something that you need for your livelihood, or if this is something you could realistically live without. Purchases of food, utilities, and housing are all perfect examples of essential expenses. It’s important to take care of yourself but it’s also important to practice moderation when it comes to overindulgence! Discretionary expenses like dining out or shopping for fun can add up fast.
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Understand your credit score
One thing they probably don’t teach you in your college courses is how to build your credit score, but it’s something that can make a big impact on your future. Whether it’s buying a car, renting your first apartment, or applying for a loan, your credit score plays a pivotal role.
The good news? You don’t need to be an expert to start building your credit score, you just need to be willing to learn! The first step is understanding what contributes to your score and how to build on it… your future self will thank you. Platforms like our very own Credit Score & More are great tools for learning the components of your credit score by allowing you to test different spending and saving methods, monitor your score changes, find opportunities to save money, and more.
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Maximize financial aid opportunities
There are so many ways that organizations can help students save money, it’s just a matter of finding them. Start looking as early as you can into options for financial aid, scholarships, or student discounts.
Many financial aid and scholarship opportunities have strict deadlines and requirements. Make sure to get all the application details that you need beforehand and take some time to look into what scholarships you qualify for. Your school’s website is a great place to start looking, but there are also designated scholarship search engines that could help you see if anything slipped through the cracks.
So, class, today we learned…
Mastering your money is a powerful skill, and it’s within your reach. By making the effort to develop financial literacy along the way, you won’t just leave college with a bachelor’s degree… you will leave with the skills to be successful in the rest of your life!