Money-saving Tricks for College-bound Students | Richard Banks & Associates P.C.

The summer is breezing by, which means it’s almost time for students to begin packing up and heading off to college. For many students, this can be their first time out from under the wings of mom and dad.

Before the mad dash to the dorms begins, be sure the college student in your life learns these valuable money tips our Richard Banks team compiled!

1. Begin building credit. Wallet Hacks writer Jim Wang points out the importance of establishing credit when starting out in college and encourages students to open a credit card if they are 18. The most important aspect of this is to open up just one credit card, and make sure the balance is paid off each month.

Worried about overspending? Have the card sent to your parent’s home, where it will be out of sight and out of mind once activated.

2. Learn to set a budget—and stick to it. We’ve discussed the the importance of budgeting before, but this is advice that is vital for college students to learn and utilize. Often, college proves to be a crash course in budgeting.

Remember, it’s still OK to go out and have your fun, just be smart about it! Set aside a “party fund” and stick to cash instead of swiping your debit card all night.

3. Become a dollar-stretching pro. You don’t have to live off ramen and lead the life of a broke college student if you become skilled at getting the most bang for your buck.

Fastweb.com has many excellent tips to help you stretch that dollar, including things like buying or renting used textbooks, utilizing the campus gym instead of a gym in town, shopping where student discounts are offered and opting to go on volunteering trips instead of expensive spring break or summer trips.

4. Graduate college with as little debt as possible. According to Student Loan Hero, the Class of 2017 graduated with $39,400 in student loan debt, adding to the $1.48 trillion in total U.S. student loan debt. With an average monthly student loan payment of $351 for borrowers aged 20 to 30 years, it’s no surprise that there is currently a student loan delinquency rate of 11.2 percent.

Whether it means going to community college to get prerequisite classes out of the way at a lower price, applying for more scholarships or working your way through college, take the steps needed to keep your student loan debts to a minimum. Remember, it is extremely hard to get rid of student loans, even through bankruptcy.

We hope these tips can come in handy for the new college students out there and that this upcoming semester is a successful one, both educationally and financially! Remember, this is the time when healthy money habits are being formed.

If you do find yourself in financial trouble, Richard Banks & Associates is here to help you get back on course.