Managing money for the first time ever seems like a daunting task for many first-time students. But it doesn鈥檛 need to be that way. Remembering just a few of these tips about your can help you avoid some common mistakes that students tend to make when they first start managing their own funds.
Set up a 鈥渟tudent鈥 checking and savings account.
Many banks will offer student accounts that limit fees on your account. It鈥檚 the bank鈥檚 way of saying, 鈥淲e鈥檒l give you some time to learn the ropes.鈥 Depending on the bank, this designation could help you avoid low-balance fees, maintenance fees, overdraft fees, and sometimes even ATM fees. Learn what fees you鈥檙e not paying while you鈥檙e eligible for a student account so that when you graduate college, you鈥檒l know how to manage them properly.
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Make automatic deposits to your savings account.
If possible, place some of your paycheck into a savings account every time you get paid. Even if you鈥檙e only adding $10 or $20 into your account at a time, by the time you graduate from college, that could be a significant amount of cash鈥攅nough to cover the deposit on your first apartment or even pay for for a celebratory, post-graduation vacation.聽
Use your checking and savings accounts strategically.
Creating purposes for both of your bank accounts can go a long way in staying financially organized. You may want to use your checking account for daily, weekly, and monthly expenses, like groceries, rent, and transportation. This may help you more easily budget your everyday expenses and use your debit card for more common transactions.
When you set up your checking account for those expenses, then you can designate your savings account for more long-term financial goals. Down payments on a home or covering future apartment expenses, paying off student loans, or a trip with friends are just some examples of future financial needs a student may have.
Receive digital notifications for balances and statements.
Managing your finances during your busy college schedule becomes easier when you receive paperless messages and reminders from your bank. Instead of waiting for your bank statement to come in the mail, you can view it from your email whenever you want.
You could also set up mobile notifications to alert you of a low balance so that you can stay on top of your spending while you鈥檙e out and about. With the internet always at your fingertips, there鈥檚 no reason for you to stay in the dark about your finances. Use it to your advantage to make your checking and savings accounts more manageable.
Don鈥檛 be afraid to make mistakes.
There are plenty of ways to maximize your finances while you鈥檙e in college, but don鈥檛 be hard on yourself if you make a mistake. You鈥檙e still young and have time to overcome financial hiccups as you learn how to make the best decisions for your financial future. Learn from your mistakes while you鈥檙e young so that you'll be better prepared when you make more important decisions later in life.
