How Do You Manage Your Money in College?
Writer:
Make a plan with your parents
Sit down with your parents and make a clear plan for your finances.
If they will be helping you out, what are the terms?
Will you have a debit or credit card? Is money they send you only for approved expenses? Is it a set amount per month or term? Do you need to keep up a certain GPA?
Getting a job
You might need to snag a job to earn your own money.
Look into on-campus jobs to cut down on commute time, especially if you qualify for federal work study.
Try to pick a job that can be flexible around your studying needs.
Only spend what you need from your paycheck, and save the rest to put towards loans or a rainy day fund.
Banking
If you don’t already have a bank account, try to set one up at a bank with locations on campus and in town.
There are many kinds of bank accounts, but a checking account is typical for daily use.
You can deposit and withdraw money as needed. Just keep in mind that if you take out more money than you have, you will be charged a fee.
Your account will likely come with a physical debit card. You may be able to add this to your smartphone’s “wallet” as well. Do not lose it!
You can usually use a debit card at ATMs to get cash and like a credit card to pay for things.
You will need to create a username and password to manage the account online, and a PIN number to take out money from ATMs. Don’t share these with anyone, for any reason (except maybe your parents).
If the bank has an app, download it to your smartphone so you can easily check your balance.
You can withdraw money from your bank’s ATMs for free.
When you take out cash from a different bank or an ATM at a store, you will be charged a fee — sometimes two.
Your account will have its own account and routing numbers, which you can use to pay bills or receive paychecks. You can find that on your bank’s website.
Credit cards
Be careful with credit cards.
They often come with very appealing introductory offers to reel you in, like a big discount at your favorite store.
While debit cards let you spend the money you actually have, credit cards let you spend as much as your credit limit — which is typically in the thousands. The catch? You need to pay it back. Fast.
Using a credit card is like taking out a loan you’re supposed to pay back right away.
If you can’t pay off the full amount by the due date, you’ll be charged interest — usually over 20%. So if you leave a balance of $100, the next month you’ll owe $120 or more.
Credit card interest is generally more than double a typical car loan, three times as high as a house mortgage, and quadruple a federal student loan.
If you tend to make impulse buys and don’t pay off your balance each month, this could negatively impact your credit score later in life.
HOWEVER, if you know you have the skills to only charge what you’re able to pay back, a credit card could also be an opportunity for you to build up your credit score.
Each month you pay off your whole balance, your credit score will go up!
Budgeting basics
The best way to responsibly manage your money is to make a budget — and stick to it.
You can write it out by hand, make a spreadsheet, or use a dedicated budgeting app or program.
Add up your monthly income from your parents or job.
Make a list of all your set expenses each month, like tuition payments, phone bill, or music streaming service.
Next, think about variable but regular costs, like books, eating out, or groceries. Estimate about how much you spend on each.
Think ahead. Are you saving for something? If you want to save up $400 for spending money on Spring break in four months, budget now to set aside $100 each month.
Add up your expenses. Is it more than your income? Time to make some cuts. While you may need books for school, you could probably get less takeout.
Don’t forget to take advantage of student discounts with your school ID or email address.
Do you have money to spare? That’s great. It’s always good to have an emergency fund because we all know how often unexpected expenses come up.
It will probably take a few months of budgeting and tracking your spending habits to really get in a groove with budgeting. But it’s a skill that will help you for life.
September 19, 2025
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