4 financial truths for college students

College is your time to learn, grow, and make new friends. That said, for a lot of us, college is also a time of financial instability. Thankfully, there are ways to make the most of the money you have.  

Here are four financial truths you need to know before your first semester.  

1. Yes, college really does cost that much 

If you’re in Oregon, you’re looking at, on the low end, around $15k a year to go to college, and that’s if you stay in-state, live at home and go to a public university or community college. For most students, there’s no getting around the need for scholarships, loans and any other financial aid you can get your hands on.  

The Solution: make the most of your financial aid options. And yes, you do have options — lots of them. If you live in Oregon, check out the Oregon Student Aid department for more information. 

2. Budgets are necessary  

When your paycheck or financial aid check arrives, it looks like a lot of money. And it just might be until bills come out of it. It’s no fun to be down to your last time while knowing you could’ve saved or been more responsible with money.  

To be clear, there are countless people in college or otherwise, that are low on funds for reasons outside their control. And even if someone is low on funds due to their own spending habits, blaming them doesn’t put money in their account.  

The Solution: Budget. Starting small can help you build the budgeting habits you’ll need long term. Starting small can be as simple as making a list of your monthly expenses' vs your income. The next step is separating wants and needs in your expenses. For example, rent is a need. The newest cell phone is a want. Prioritize wants and needs accordingly, and you’ll have a strong start. 

3. Credit is a game changer but ONLY if you used correctly 

Credit, in the ideal scenario, is used to extend your finances, improve your credit score, and give you financial breathing room in emergencies. All three of these uses are especially important for college students. But, if not used correctly, credit can become costly, among other things. While it may sound like a good idea to forgo credit entirely, it’s becoming increasingly mandatory for renting, car loans, and countless other events.  

The Solution: Use credit wisely. Build your credit with a credit card or personal line of credit. Then put a small balance on it, 30% or less of the total credit limit, and pay it off when the bill is due. This establishes your credit history, shows you use credit responsibly, and establishes your payment history. All of these factors are crucial to having and maintaining good credit in the long-term.  

4. Student discounts are your new bestie 

If you live in a college town, you’ll find student discounts at restaurants, clothing stores, electronic shops and more. Even online, it’s worth it to look for student discounts at checkout. But how do you make the most of your discounts? 

The Solution: Carry your student ID and shop around. Find out which shops offer the best discounts and prioritize them. It could be a good idea to put the money you save by discount shopping, directly into your savings. Another way to maximize student discounts is via memberships. Using your student status to get discounted membership, when possible, means you get savings from being a student AND savings from being a member.  

Between school work, part time jobs, and a social life, the next few years of your life are going to be pretty hectic. And there’ll be a lot of different things coming at you. But, making consistent effort to budget, discount shop, and use credit wisely are steps you can take to better your college life!