For many students, heading to college for the first time is life-changing. It’s the first time they live on their own, which means doing their own laundry, finding their next meal, and staying on top of classes. College is a curveball and many students need a whole semester to fully adjust to their new lifestyle, including their new financial independence. If you are a soon-to-be freshman, here are some financial tips to go over before the semester starts.

Budgets are the foundation of anyone’s finances. Budgets outline how much income you can expect in a month and allocate amounts to categories like rent or housing, school supplies, transportation, groceries, etc. Start your budget by listing your income, such as:

Then track your spending. The goal is not to spend more than your income. There are budgeting apps available for you to utilize, or you can always go old school by tracking with a paper and pencil. You can check out other ways to build your budget here.

Needs vs. Wants
More than likely, this is your first time on your own, living independently. As you figure out what that means for you, keep in mind that you need to prioritize the necessities first. College life offers plenty of opportunities to spend money on dining out with friends, shopping, and social events. Take a moment to understand your needs vs. wants.

Needs

Wants

Learning to delay non-essential purchases can significantly improve your financial stability.

Take Advantage of Student Discounts
Did you know your college ID can unlock discounts and free services? Many colleges partner with local businesses and national brands to offer reduced prices on everything from meals and entertainment to technology and transportation. In addition to discounts, your school may provide free resources such as:

Before paying full price for a product or service, check whether your school offers a student discount or free alternative. Taking advantage of these benefits can significantly reduce your expenses while helping you get the most value from your tuition.

Be Careful With Credit Cards

While building your credit score isn’t top of mind for most freshmen starting college, a good score can set you up for bigger milestones after graduation. A great way to build this credit is with a credit card. Credit cards are a revolving line of credit with a set limit of how much you can borrow at a time. Whatever amount is borrowed will need to be paid back. Credit cards can become a slippery slope to overwhelming debt if not used properly. Here are some best practices:

Building a responsible credit score throughout college can help you apply for apartments, car loans, and mortgages later.

Buy Used or Rent Textbooks

Textbooks are an essential part of the learning experience at colleges, and one of the biggest expenses of the semester. Luckily, there are ways to save money:

These alternatives can save you hundreds (yes, hundreds) of dollars each school year.

Apply For Scholarships Every Year

Many students assume scholarships are only available before starting college, but that's not the case. Thousands of scholarships are awarded each year to current college students based on academic achievement, financial need, leadership, community service, specific majors, and extracurricular involvement.

Set aside time each semester to search for new scholarship opportunities through your college's financial aid office, academic department, professional organizations, and reputable scholarship websites. Even smaller awards can help cover the cost of textbooks, housing, meal plans, or other educational expenses.

Limit Student Loan Borrowing

If you're eligible for student loans, borrow only what you truly need. While it may be tempting to accept the full loan amount offered, remember that you'll eventually have to repay it with interest.

Borrow conservatively to reduce your future financial burden after graduation.

College is the perfect time to learn financial responsibility. While it may take some time to perfect it, practicing smart money management now can reduce your stress, minimize debt, and prepare you for life after graduation.