Chegg Blog ? 10 Personal Finance Tips for All College Freshman

We can?t all be the president of our high school?s investment club.? But don?t worry, you?re not alone!? In our most recent survey over 70% of our students told us they?ve got a thing or two to learn about personal finance.? Here are 10 personal finance tips every college freshman should consider.

1. Make a budget and stick to it.?

First, identify all the major cost categories ? tuition & fees, room & board, books & supplies, food, transportation, personal care, and entertainment.? Then estimate what you would spend in these categories.? Friends currently in college and the financial aid office at your future school are good resources to go to for estimates.? Remember to consider the relative cost of living in the city you?re moving to.? Next, figure out your income.? This may include your financial aid, scholarships, loans, a job, and any stipend from your parents or family.

Remember that the #1 rule to basic budgeting is that your income needs to be greater than your expenses.? If that formula isn?t working out for you, go back to the drawing board.

Once you have your budget set, stick to it.? One good way to do this is to set a ?think twice? limit ? i.e. $25.? If something is over $25 (or whatever your limit is), take a second to ?think twice? about whether or not you really need it before spending the money.

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2. Bank smart.?

You may be opening up your first bank account or you may already have one from high school.? Either way, know the basics of the account that you have to avoid fees (which are sky-high at many banks right now).? For example, is there a minimum balance required for the account?? Is there a certain number of withdrawals that you can make a month?? Is it ?free? to use your ATM card as a debit card or are there fees associated with that?? Can you set up a free small savings account to protect your from ?overdrafting? (taking too much out of) your checking account?? Read all of the fine print and ask for help if you need it.

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3. Watch where your money goes.?

Join a free personal budgeting site like Mint, check out the budgeting tools available on your bank?s website, or set up an Excel spreadsheet and save receipts to track where your money goes.? It?s amazing how much easier it is to stick to a budget when you?re tracking it.? Put a ?spending check? on your calendar around midterms in first semester to look at where you are spending your money and assess if you?re budget needs to be adjusted.

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4. Don?t get a credit card for the wrong reasons.?

There are some government set limitations to getting a credit card when you are under 18.? But, even with those limitations, credit card companies will try to offer freebies and other promotions to incentivize students to sign up.? Building your credit can be a good thing if you manage it closely and never spend more than you have.? Using credit as a ?loan? (or to push your ?income? over your ?expenses? in your budget) is not a good idea as the interest rate on credit cards is usually more than double that of other student loan options (especially federal loans).

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5. Be careful with your personal information.?

Be careful with sensitive mail and emails (i.e. bank statements), account passwords, your passport or social security card, and other personal information you may have with you on campus.?? If you use mobile banking, make sure to have your phone or tablet password protected. Research has shown that it takes 18-24 year olds nearly 2x as long to detect fraud as other groups and young adults are more likely to fall victim to fraud or identify theft by people they know.? So, make sure you are watching where your money goes and following up with your bank on anything that you don?t recognize on your statements.

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6. Take advantage of freebies.?

Snacks from the dining hall to put on your meal plan.? A movie marathon in a friend?s dorm room.?? Free entry night at the local museum. Remember that there?s plenty to do at school that doesn?t cost money.? Take full advantage of all of the free (or included in your tuition) opportunities both on your campus and in the local area.

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7. Check for student discounts.?

College students are customers companies want to have.? Habits you build in college will often stick with you for life (i.e. using Crest toothpaste? not eating Ramen 5x a week!).?? So, many companies offer student discounts. Some examples include ? J Crew (15%), Apple (average of 8%), Subway (10%), The Wall Street Journal (75%).? Do some research this summer to understand all of the companies that offer student discounts.? And, before you buy anything, ask if there?s a student discount.

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8. Pay less for textbooks.

Full disclosure, we do offer cheap?textbooks?at Chegg.? But, we can?t write this article without making this point. Textbooks cost the average student over $1,000 a year.? That will be a huge portion of your budget.? Renting or buying used textbooks can save you 50% or more.? So, make sure to comparison shop.? Remember that the bookstore is not the only place to purchase your textbooks and supplies.

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9. Have an emergency fund.

After reading this article, you?ll all have a killer budget of course J? But, unexpected items are sure to come up during the semester.? Make to aside an amount of money for this ?emergency fund? and don?t access it unless it truly is for an ?emergency? (note: a new outfit for greek rush or tickets to see Twilight Breaking Dawn Part 2 are not? considered emergencies!).

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10.?If you have extra money, start saving.

This is an old saying for a reason? it is never too early to start saving!? Your late teens and early 20?s are a great time to start saving.? If you have a job, some extra funds, and have avoided taking out any debt for college ? consider investing in a Roth IRA.? A Roth IRA is one of the simplest retirement accounts available in America.? A Roth IRA is a great choice for college students because the money you save is still accessible in the event something unexpected happens when you?re still in school.? A retirement account may sound crazy at 18? but, after 20+ years of interest accumulation, you?ll be thanking yourself!

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