No one teaches you how to deal with finances as a college student

You go to college, you’re expected to know how to adult, now what?

Well first things first, money can be a hard topic and a scary one to confront, but we need to do it. We are aiming to be financially literate human beings because guess what in a few years you’re about to be on your own in the real world and you need to know how to manage money; starting now.

While we discuss finances throughout this blog I will give you my best tips and eventually my horror stories with dealing with finances as a college student!

Disclaimer: I am an Amazon Affiliate and links provided are affiliated with my account. Nevertheless, these are products that I have bought and used with my own money which I made from serving at Olive Garden and I only recommend products that I know have helped me so you don’t have to waste your money on products people recommend that you’ll end up hating like I did. All love here<3

One thing about me is I love to shop and travel but the money has to come from somewhere right? and I should probably be saving for future instances and learning how to manage my money. Well over the past 2 years, I’ve learned just that and I’m going to shed some of that on you all.

1. Get a job!
2. Save your extra cash!
3. Budget, budget, budget!!!
4. Get a credit card and start building credit! (BUT. be responsible)

1. Get that job!

My first tip is to get a job. I know but just hear me out. Even if you’re only working one day out of the week, it’s some extra cash following into your pockets and it can teach you so many lessons. For me working during college allowed me to learn how to time manage and how to say no to people. Being a people pleaser is something I see a lot in my fellow peers at my university but it can be one of our downfalls if we don’t learn how to control it. Because I was often times working, I had to learn to say no to things I wanted to go to and at first I was sad to miss some events but I learned the world moves on and there is a world of opportunity for you to make up those events.

As a college student time management is imperative and it can really kick you in the but if you don’t know how. I always recommend writing on a notepad or in the notes app what you need to get done for the day and then for the week and if you have some extra time getting some of the stuff due later in the week done! You’ll notice how quick your time frees up and how you don’t feel as stressed because there isn’t as many deadlines pressing.

Here is the link for the To-Do list notepad that I use and love: https://amzn.to/4cxiO33

2. Save that extra cash!

If you’re anything like me, you spend your extra cash like no other because it’s just there. One goal I made for myself that I think would be beneficial for so many people is to save your extra cash! I ordered a cash organizing binder and I put all the cash I take out of my bank account or just have lying around in there and I don’t touch it which is very important. I recommend getting a cash binder to put all the extra cash you have lying around in and then put the binder in a safe place and tuck it away; don’t touch the money in there. This has helped me save so much more money then I thought I would have saved and genuinely been beneficial towards me not spending as much. Yay for financial goals! If you think this would be a good option for you, spend the 10 dollars on the binder and put all that cash in there. Here’s the link to the one I use which I highly recommend: https://amzn.to/3TFuwzU

Another thing I do is every time I get payed I take 30% of my paycheck out of my bank account and stuff it in the binder. I have the ability to do this but not everyone does. I would try and take at least 10% out of your paycheck to put towards savings, in my case the cash binder. This will help you save up money more quickly and in no time you’ll be thinking how did I manage to save this much.

3. Budgeting

Go on your notes app or google docs, something easily accessible to you so that you can write down your weekly expenses. Once you have detailed all your expenses, document your average paycheck whether it is weekly, bi-weekly, monthly, etc. Take the 10-30% out of the paycheck for savings, and then add up all your expenses (food, gas, any bills) and subtract it from your paycheck.

Anything left over after subtracting your savings and expenses is your “disposable” income. Take that out each week in cash or you can use your credit card which I talk about in the next section. When you’ve hit that amount, there is no more disposable money. It’s over. You can wait to have fun and spend money leisurely when you get next week’s cash out. And be serious about it because money is a serious topic.

If I can incentivize you to budget, here’s the first horror story you get to hear on this blog. There has been two times where I have made this mistake in my life and although yes this was when I had just gotten my debit card and didn’t understand the ins and outs of using it, I’m still embarrassed. I had just gotten paid and I owed my friend money for concert tickets so I Venmoed her $250 not realizing I had put my card down to pay some bills I had. Well the money came out of my account anyways and my card read -$286.34. Yes negative, yes you read that right… My card went into overdraft which I had to come up with money quick enough to pay the bank back before they closed my account. Don’t make the same mistake I did. Be responsible with your money, budget.

We want to be financially literate students and people!

4. Credit Cards

I got my first credit card this year and that was scary. Not only because I’ve heard the horror stories of people being thousands of dollars in debt to their credit card companies but also because no one explains the ins and outs of them. Like what credit actually is, why we need it, how to use a credit card responsibly, all the nines. So for all you college students or teenagers getting your first credit card and you need a simple explanation that’s what I’m here for!

What is credit?

Credit is essentially a financial tool that allows you to borrow money or access products with the understanding that you’ll pay for them later. It’s like a promise to repay what you owe in the future. When you use credit, you’re essentially borrowing money from a lender, often a bank or a credit card company.

Why do we need credit?

1. Building a Credit History: When you use credit responsibly, like paying your credit card bill on time, you’re building a positive credit history. Lenders look at this history to determine if they should lend you money in the future, such as for a car loan or a mortgage.
2. Access to Loans and Mortgages: When you want to make big purchases, like buying a car or a house, most people don’t have enough cash to pay for it all at once. That’s where loans come in. Lenders look at your credit history to decide if they should give you a loan, and what interest rate they should offer you. A good credit history can help you get approved for loans and mortgages more easily and with better terms.
3. Emergency Funds: Sometimes unexpected expenses pop up, like medical bills or car repairs. If you don’t have enough cash saved up, you can use credit to cover these expenses temporarily until you can pay off the balance.
4. Convenience and Rewards: Credit cards offer convenience for making purchases, especially online or when traveling. Plus, many credit cards offer rewards like cash back, airline miles, or points for purchases, which can add up to savings or freebies over time:) YAY.

How to use a credit card responsibly?

1. Pay on Time: Always pay at least the minimum payment by the due date, even better if you can pay by the statement date. Late payments can damage your credit score and result in hefty fees. I prefer to pay the card off in full not just the minimum payment by the statement date which looks good to credit card lenders which can really help your score
2. Only Charge Items to the Card that you HAVE Money in Your Bank Account For: Avoid overspending and try to keep your credit utilization ratio (the amount of credit you’re using compared to your total credit limit) below 30%. To calculate your credit utilization ratio take however much credit you’ve used and divide it by your limit. So for example, my first credit cards limit was $300; I would only want to spend up to $99 on the card and then pay it off. One really useful tip I have is that everything I spend on my credit card, I subtract from my bank account meaning even though I have the money on my debit card, I will not allow myself to spend it because I owe it. Think of it as you owe your friend $100, would go and spend $50 of it when they’re expecting you to pay them back next week. No. So don’t do it with your credit card which leads to my 3rd point.
3. Budgeting: Keep track of your spending and create a budget to ensure you’re not spending more than you earn.
4. Monitor Your Statements: Regularly review your credit card statements to check for any unauthorized charges or errors. This is very very important. I’ve come across a lot of people who do not check their credit or debit card statements and they’ve had unauthorized charges that they’re unaware of.
5. Avoid Cash Advances: Cash advances typically come with high fees and interest rates. It’s best to avoid them if possible. What are cash advances? A cash advance is a short-term loan from a bank or an alternative lender which typically is a credit card issuer allowing cardholders to withdraw a certain amount of cash against their available credit. It’s not worth it. If you don’t have the money for something, you don’t have the money for something.
6. Build Credit Wisely: Use your credit card regularly but responsibly to build a positive credit history. This includes making payments on time and keeping your balances low.
7. Read the Terms and Conditions: Understand the terms of your credit card agreement, including interest rates, fees, and rewards programs.

For college students, if you’re getting your first credit card I recommend the capital one quicksilver student card. If you are interested in getting it here’s my referral link: https://i.capitalone.com/JrIYzXy5b

This was my first credit card ever and I loved it. You get cash back for every purchase and they’re not kidding about that and the Capital One team was really helpful whenever I had questions or issues I needed to figure out and trust me I did. If you’re not a student and just looking to get your first credit card, I would recommend Capital One Quicksilver or Discover it.

Remember Credit Cards are NOT bad, they can be a really positive thing when used right:)!

I think that’s a long enough discussion for today, but just know this is just the beginning of our discuss on finances!

Signing off, XOXO, Amie <3