New Adventure. New Responsibilities.

Going to college is an exciting adventure, but it comes with new responsibilities and new found independence. Start off right by using the following money management tips.

  1. Open a college or student checking and savings account.
  2. Shop around for textbooks.
  3. Create a budget and stick to it.
  4. Decide what is a need versus a want.
  5. Understand your student loan debt.
University buildings, backpack and schoolbooks in foreground; symbolizing managing money in college

Managing Money in College

Managing finances can be stressful for anybody, but it can be overwhelming if you are a young adult just starting to learn about real-world responsibilities. Students who practice good money management skills, such as making a budget, tracking their spending and managing loan debt will be better prepared after graduation. 

  1. Student Checking & Savings Accounts

    Unlike that first school ID photo, your first banking relationship could last long after you graduate. Making a smart decision now will mean fewer surprise fees that can add up later.

    Choose an account as soon as possible – you should try to find one before you start school.

    Once you have an account, sign up for direct deposit with your school before classes start. If you are expecting money from your financial aid office, you’ll often get it faster this way – it can be weeks before the school gets to writing you a paper check.

    Choosing an Account

    What you need to know

    Shop around, and don’t feel limited to only financial institutions that have ATMs on or near campus; some will automatically reimburse fees for using any ATM. Consider accounts that offer services like remote check deposits, mobile apps, and online bill-pay.

    Keep in mind

    Dig deeper when accounts are marketed as “free” or “easy” – very few accounts charge no fees at all.
    Signing up for an account now can save you headaches later, and researching accounts with the lowest fees can save you money.

    You have many bank accounts options. Here are three possibilities and key factors to compare when making your decision.

    Information on different types of accounts

    Category

    Virtual checking account

    Student checking account

    School-affiliated banking services

    How it works

    Some financial institutions provide exclusively online banking services that are comparable to a traditional checking account

    Some financial institutions offer student checking accounts with discounted fees to establish long term relationships with new customers

    Many colleges have a financial institution they partner with to offer students campus affiliated checking accounts or prepaid debit cards

    Benefits

    May waive or reimburse ATM fees, even those for out-of-network ATMs
    Often include online banking and bill-pay
    Often have mobile apps for things like remote check deposit
    Often won’t let you overdraft your account

    Free access to in-network ATMs
    May include online banking and bill-pay
    Access to traditional in-person bank branches

    On-campus branch locations and ATMs
    May include online banking and bill-pay
    May offer discounts at local or campus businesses
    Sometimes your student ID card can be used to access your money

    Risks

    Generally do not have in-person customer service options

    Possibly charge monthly maintenance fees – up to $12 a month in some cases – if you don’t meet the minimum balance or the financial institution’s other enrollment criteria, like maintaining a full-time enrollment status at school
    May charge more than $30 per overdraft, which can add up quickly, especially if you opt in to coverage for ATM and debit card overdrafts

    Could charge fees every time you use your debit card
    Don’t always provide the ability to write checks
    May charge inactivity fees each month for not using your account frequently
    Possibly charge monthly maintenance fees – up to $12 a month in some cases – if you don’t meet the minimum balance or the financial institution’s other enrollment criteria, like maintaining a full-time enrollment status at school
    May charge more than $30 per overdraft, which can add up quickly especially if you opt in to coverage for ATM and debit card overdrafts

    Learn why reading account disclosures is important.

  2. Renting & Renters Insurance

    If you have decided to live in a private rental instead of college housing you may be considering renters insurance. Renters insurance can protect your personal property against damage or loss, and insures you in case someone gets hurt while on your property. If you are a renter, do not assume your landlord carries insurance on your personal belongings; you may wish to purchase a separate policy. Speak with an insurance professional for details.

  3. Social Media & Your Finances

    How much time do you spend on social media? When you think about it, you might be surprised. Social media may be impacting your finances without you even knowing about it.

    Shopping

    More often than not, social media is influencing our everyday purchases. It may be an ad or a suggestion from a friend, but often there is quick access to the product and before you know it you made a purchase. When using social media, think about your wants and needs before buying, especially if you are using a credit card. Quick debt could end up being long-term and expensive debt.

    Employment

    Did you know that employers are using social media not only to promote their business, but also as means to screen a potential future employee? Employers may review your social media accounts for social behavior, communication skills, discriminatory comments related to race, gender or religion, and even how often you post. All of these factors could impact whether an employer makes you an offer. So, if you are seeking a job think before you post.

  4. Credit Unions on Campus

    Credit unions exist to serve people who share a common bond. If your school is affiliated with a local credit union then students may be eligible to open an account and enjoy the benefits of credit union membership. As not-for-profit, member-owned financial institutions many credit unions on college campuses offer low-cost student products and services from checking accounts to student loans. Remember to always compare product and service offerings from a variety of financial institutions before making a final decision.  Learn more about credit unions or locate a branch near your campus by using the Credit Union Locator.