Whether you or someone you love is going off to college for the first time or returning for another term it can be helpful to go in with some financial forethought. From big time financial concerns like tuition and loans to more fundamental things like grocery shopping for the first time and starting to pay rent, there are many changes to think about when going off to school. Your credit union is here to help and be your partner in financial success!
Budgeting 101
Though it might seem obvious to someone who’s been on their own before, the basics of budgeting are a good place to start for someone just starting out.
- Step One, Income: Inventory all sources of income including scholarships, student loans, jobs, and anything else coming in. Project what income can be expected weekly, monthly, or in whatever increment makes the most sense for you.
- Step Two, Expenses: Break down how much you will need for other expenses like utilities, rent, and other necessities.
- Step Three, Spending: Project what money will need to be spent during the same time increment in which you’re keeping track of your income. How much for groceries? Transportation? Entertainment?
- Step Four, Budget: Figure out how to disburse your income to meet your expenses and spending needs. Will you have enough to cover your necessities? If not, how can you supplement that income? How much will you have in your budget for things like entertainment? Figure out all those little details and create a realistic budget.
Tools 203
Your credit union has many tools to help when one of our members is starting out on their own.
With our mobile app and online banking you can get a real-time view of your finances. Transaction alerts can help keep track of balance changes. Features like remote check deposit and shared branching also mean that you can handle many standard transactions without needing to be geographically near a Straits Area Federal Credit Union branch.
We also offer secured Visas and credit builder loans to help young borrowers establish credit. These low interest options are simple to obtain and can help set up college students in a more advantageous position when starting out.
Straits Area FCU also offers free credit counseling to all members, so if you or the student in your life needs guidance on these topics or any others we are here to help!
Finance 305
Some tips for those starting out in college are often repeated–but it’s because they’re useful and universal!
- Keep food costs down and practice budgeting by grocery shopping and cooking at home as much as possible.
- Take advantage of student discounts. Subscription services, retailers, and others may offer deals designed specifically for students. Seek these out and use them to get more out of your money!
- Find free fun! Colleges and universities frequently offer free activities and food for students just for showing up. Watch for these and take advantage of any that interest you!
- Build an emergency fund. Things like sudden car repairs can pop up unexpectedly and totally throw off a budget that’s not prepared for it. Set some money aside to be ready for the unpredictable.
The Capstone Course
Going off to college prepared can save you stress as the term continues, which there will already be plenty of with tests and term papers! If you’re making a financial plan for starting school your credit union is here to help!
