Managing Your Finances as a College Student (Sponsored by Univest)

The following article is sponsored by Univest Corporation. For information about Univest’s services, please click on the following link:  www.univest.net.

Managing Your Finances as a College Student

By: Anthony DaCosta, Vice President and Area Manager, Univest Bank and Trust Co.

With college comes increased responsibility. Knowing how to manage your finances early in your college career can serve as a catalyst for managing greater earnings in the future and can help you avoid costly mistakes. It is extremely important that you do the necessary research and preparation to make sound decisions regarding your finances.

Here are some tips to help you establish a strong foundation for managing your money as a college student:

1.     Prepare a monthly budget. This is the most important step in the process. Identify your needs and their costs (rent, food, gas, phone, school supplies, personal care items, laundry, etc.). Always be a smart shopper and keep your costs down. Having a budget is important, but the biggest key will be your ability to be disciplined to stick to it and execute it.

2.     Research a bank and their accounts and services. Visit local banks near your home to gather brochures and information on their accounts and services that are pertinent to your banking needs and preferences. This is a good way to measure their level of service and commitment to customers. See how you can bank with them if you choose to go away to school. This step is a good way to establish a measuring bar and see what bank meets your expectations locally or where you will be attending school.

3.     Differentiate between needs and wants. Track your expenses and quickly categorize them as a “need” or “greed.” If it is the latter, then you will know what to cut out of the budget. Give yourself a weekly allowance for wants, but spend it wisely.

4.     Use credit cards wisely. Having a credit card is a great idea and can help you build credit safely. The key is not to over-use the credit card and make sure you have the capacity to pay-off the balance you have accumulated.

5.     Save whenever you have the opportunity. Always prepare for the future. Remember, every little bit counts. Scheduling automatic transfers to your savings account is a great way to grow your emergency fund.

Using these tips can help you manage your finances in college and beyond.

Univest Bank and Trust Co. is Member FDIC and an Equal Opportunity Lender.