Top Financial Tips for College Students

Starting college is a major milestone for students and their families. It’s a time of excitement, independence and new beginnings. But it also comes with a host of financial decisions that can shape a young adult’s future for years to come. For many students, this is the first time they’ll be managing money on their own. And for parents and grandparents, it’s a chance to help guide them toward smart, sustainable financial habits.

At Credit Human, we believe that reducing financial stress starts with building financial slack—having enough breathing room in your budget to handle life’s surprises. That’s why we’re sharing these top financial tips to help your student thrive during their first few years of independence.

Top 10 financial tips for college students

We get it—creating and working toward financial goals can seem like a daunting task. When managing money for the first time, it can be challenging to balance money you have to spend (ex: bills) with money you want to spend (ex: pizza delivery) and still leave money aside for goals or a safety net. However, planning and having intentional conversations at the beginning of the financial journey will make all the difference in the long run. Help set your student up for success—for today, the next few years of school and the rest of their professional lives. After all, if you choose to take out student loans they will eventually need to be paid back.

1. Create a spending plan and stick to it.
   Help your student track their income (from jobs, allowances or financial aid) and expenses (like rent, food, books and entertainment). Credit Human’s Spending Plan Worksheet helps you and your student allocate money according to what they value in a way that is easy and fun instead of making a boring and restrictive budget. Updating it every semester can become a great way to continue the conversation and improve your student’s financial health.
2. Open a checking and savings account.
   If your student doesn’t already have their own bank account, now is the time. Credit Human has some great options, including our Sensible Spend Account, that make learning to manage spending easy while eliminating the risk of incurring overdraft fees. A checking account helps manage daily spending, while a savings account encourages setting money aside for emergencies or future goals.
3. Understand financial aid types before borrowing
   Make sure your student understands how to find financial aid and the different options available to them, including grants, scholarships, federal student loans and private student loans. Talk to them about how to fill out the FAFSA, applying for grants and scholarships as much as possible and taking out loans only when necessary. Look carefully at the terms and conditions of all financial aid for which the student is applying.  Considering details like academic requirements, interest, and deferment periods will help you weigh the pros and cons of each option to find the right fit for your needs.  Credit Human offers:
   • $5,000 Scholarships open to members and their families, applications open in January
   • Private higher education lines of credit and education loan refinancing through CU Student Choice, allowing undecided and half-time students to finance their education
4. Use credit wisely.
   A student credit card can help build credit history, but it must be used responsibly. Teach your student to pay off the balance in full each month and avoid unnecessary purchases. Discuss what to do if interest is accrued and include that in your Spending Plan.
5. Build an emergency fund.
   Even setting aside $10 to $20 a month can add up. Having a small cushion can prevent a financial hiccup from becoming a crisis. If your student is working during school, discuss the possibility of part of their paycheck going automatically into their savings account. Taking actions to "set it and forget it," even if it is $5 a paycheck, can add up and be useful for emergencies.  It can also remove the temptation to spend everything as soon as you get paid.
6. Take advantage of student discounts.
   From software to streaming services to public transportation, students can save big just by showing their ID or signing up as a student. Encourage your student to always ask if a discount is available. Consider signing up for student accounts for things like technology and Amazon Prime.
7. Avoid impulse spending.
   Trips to the movies and spontaneous shopping sprees can add up fast. Help your student recognize the things that are important to them versus what they can do without, and to plan for occasional splurges. After all, school isn’t always about studying. Social life is important and should be included in the plan alongside bills.
8. Learn to cook simple meals.
   Ok, we know that cafeteria food gets old quick, but eating out is one of the biggest budget busters. Mastering dorm-room cooking can save hundreds of dollars a semester—and lead to healthier habits, too. Not sure where to start? Ask your favorite AI platform for help creating a meal plan for you that fits into your spending plan.
9. Plan for taxes.
   If your student works part-time, they may need to file taxes. Help them understand how to track income, withholdings, and potential deductions like tuition or education-related expenses. If they are going to school out of state, make sure they know how that will affect their filing requirements.
10. Set financial goals.
    Whether it’s saving for a spring break trip, paying off a credit card or building credit, having a goal makes financial decisions more meaningful and motivating. Setting goals can also help your student define their values. Do they want to travel? Save up for an apartment? Qualify for a house that they can rent out during grad school? Always have the best gaming system? It's never too early to set the intention and start working toward these goals.

Why a credit union is a good choice for students

Unlike big banks, credit unions like Credit Human are member-owned and mission-driven. That means we’re focused on helping our members, not maximizing profits. Credit unions are cooperatives, and at Credit Human, our goal is to help people improve their quality of life by developing and maintaining financial slack. For students, this translates to:

• Lower fees and better interest rates
• A community-focused approach that puts people first
• Products tailored to meet members (and students) where they are instead of taking a one-size-fits-all approach to money management
• Advice and education
  • One-on-one help at our Financial Health Centers
  • Community workshops and events
  • Bite-sized, gamified financial literacy education through our Financial Resource Center

Helping your student starts with authentically connecting with them about their financial goals

Helping your student build good financial habits now can set them up for a lifetime of success. Share this guide with them, talk openly about money and remind them that they’re not alone. With the right tools, support and mindset, they can navigate college with confidence—and come out stronger on the other side.

Before they head off to school or work, encourage your student to stop by a Financial Health Center for a financial health conversation—a one-on-one session to help them start strong and stay on track. We can help ensure that your student is set up for success. Including showing them how to engage with all the tools and services available to them. We want your student to confidently manage their finances, in person and through digital banking.

Let’s help them start their journey with financial slack, not stress.