Money can be a stressful topic for college students. The stereotype of “broke college kids” exists for a reason, because many students find that finances can get a bit tight during their college years. As students enter this time of increased independence, they also gain more responsibility. If you are a student and you are stressed about money, the best thing you can do is be mindful. No problem disappears by ignoring it, so face your financial challenges and be mindful of you current situation. Here are a few tips for financial mindfulness. 

1. Plan Your Income: Many financial advisors recommend the 50-30-20 rule, where 50% of your income goes to necessary expenses, 30% goes to your wants, and 20% goes to savings. In a tumultuous time like college, where you probably are not making a full-time income, this may not be the most practical structure for you, but nevertheless, you should be aware of your approximate regular income, and you should plan for how you are going to allocate those funds. Try to think about the best way for you to cover all of your necessary expenses and contribute towards savings, while still leaving some of your income to be used on things you want. Each person might have a different budget plan, but take the first step by thinking about how you plan to use your regular income. 
2. Download Your Banking App: One of the biggest problems that college students run into is that they are not aware of how much money they have to spend, so they end up overspending. By keeping your banking app available on your phone, you can stay aware of how much money you have, and then spend within your means. 
3. Keep Track of Recurring Expenses: Many students have at least a few recurring expenses like student loan payments, car insurance, streaming services, or phone payments. When evaluating how much money you can spend on fun outings or new sneakers make sure to factor in the cost of your recurring expenses. You do not want to put all your funds towards fun things, and then not have enough left for your necessary payments. So, take note of all the recurring expenses you may need to plan for. 
4. Keep an Emergency Fund: College is filled with many unexpected experiences. Sometimes these are really good things, but you should also be prepared for the times when your car might break down or you need to take a trip to the ER. Be prepared for the unexpected by keeping a little bit of your money set apart to be used in emergency situations. 
5. Carry a Credit Card: When unexpected situations arise, it can also be valuable to have a credit card with you for the times when your situation requires more money than you have immediately available. Maybe you need to call a tow truck or stay in a hotel. If you cannot immediately pay for these expenses, a credit card can come in handy. But, be careful not to spend more than you will be able to pay back. Credit cards can be dangerous if not used thoughtfully. Be mindful of your credit card use, but do not be afraid to use it when needed. 
6. Utilize Student Discounts: Several businesses provide discounts for students. Take advantage of these discounts when considering how to spend your money. Saving a little can end up going a long way. If you can save 10% any time you order pizza, then you can put that money towards your savings or your loan repayment. These discounts typically only last through your college education, so take advantage of them while you can. 
7. Stay Mindful of Loans: Many students rely on loans to finance their college education, but it can be easy to forget about them until you get to graduation and realize that you are in a lot more debt than you expected. One way to work against this is by paying off the interest on your loans while you are in school. If you have a part-time job with a regular income, consider putting some of that towards your loans. By even paying $25 a month, you can end up saving yourself a lot of money in the end. Be mindful of how quickly interest can build up, and work to pay off your loans as quickly as you are able to. 

As you become more independent, you must be willing to take responsibility for all areas of your life, including your finances. Many college students end up with significant debt at the end of their college education, with no plan for how to pay it off. By starting to build habits of financial responsibility while you are in college, you can prepare yourself for your life after college, and you can work to avoid crushing debt. Ultimately, the best thing that you can do is to be mindful of how you are using your money. Ignorance is likely the biggest cause of financial irresponsibility. So, do your best to be mindful of your finances, and employ these tips when possible. You’ve got this! 

If you are interested in learning more about responsible finance management consider pursuing a major in Business, Accounting, or Finance. 

Mattigan Burleigh ‘24