College Student Budgeting Tips
and Banking Basics

Starting college marks one of life's biggest financial transitions. Whether you are starting your freshman year or helping a college-bound student, managing money is important. It can help reduce stress and lead to success during and after college.

A college student’s income and schedule are unique, which makes their budget unique as well. Students who learn basic budgeting skills and utilize financial tools prepare for long-term financial health. This benefit lasts well beyond graduation day.

Why Checking Accounts for Students Matter
Most high school students handle money through cash, payment apps, or their parents' cards. Although most young people are already using digital payments, college life requires even more digital financial tools. They typically manage tuition payments, textbook purchases, meal plans, and everyday expenses across multiple payment methods. Unlike basic savings accounts, checking accounts provide debit card access, digital banking, and bill payment features that college students find useful.

The Teen Debit account includes a free Arrowhead Savings account. This combination teaches the basic principle of balancing spending with saving – a skill that’s useful when managing larger college expenses. Once the member turns 18, the Teen Debit account will automatically be converted to an Arrowhead Checking account. They'll also receive a new debit card and the ability to use checks for their account.

Consider using the Teen Debit and Arrowhead Savings accounts for:

• Summer job earnings management: Practice depositing paychecks, setting up direct deposit, budgeting for personal expenses, and saving for college costs
• Back-to-school shopping: Learn to compare prices, track spending, and stay within predetermined budgets
• Emergency fund building: Develop the habit of setting aside money for unexpected expenses.

Real Life College Student Budgeting Tips
Generic budgeting advice often fails college students because it doesn't account for irregular income, unpredictable expenses, and the unique financial pressures of academic life. The following student budgeting tips address the specific challenges faced during college years.

Monthly Money Planning for Students
College expenses don't follow typical monthly patterns. Some months bring heavy textbook costs, while others involve spring break expenses or summer preparation costs. Creating a semester-long financial overview prevents month-to-month money stress.

Start by listing all known semester expenses:

• Tuition and fees (often due at the start of the semester)
• Textbooks and course materials (front-loaded each semester)
• Housing costs (monthly or semester payments)
• Meal plans (semester or monthly charges)
• Transportation (gas, parking passes, bus fees, rideshare)

Then, add variable monthly costs:

• Entertainment and social activities
• Clothing and personal care items
• Phone and internet costs
• Unexpected academic expenses (lab fees, field trip costs)

This view can help avoid the common trap of overspending early in the semester when money feels abundant. Financial experts typically recommend 3-6 months of expenses in emergency funds, but college students need a different approach. Emergency funds in college should cover these specific student scenarios:

• Car repairs and other transportation expenses needed for work, internships, and classes
• Medical expenses not covered by student health plans
• Technology failures like laptop crashes during finals week
• Unexpected travel costs for family emergencies or job interviews
• Academic emergencies such as required conference attendance or specialized software purchases

Digital Banking and Mobile Money Management
College students need banking solutions that work with their technology-dependent lifestyles. Look for accounts offering these digital banking solutions

• Mobile check deposits for part-time job paychecks
• Free transfers between Arrowhead accounts for family financial support
• Real-time spending notifications to prevent overdrafts and track expenses
• Budgeting tools that integrate with your banking app—like our Spending Analysis tool
• Fee-free ATM networks
• Person-to-person payment, like Zelle^® for splitting costs with roommates and friends

These features will make managing finances while juggling classes, work, and social activities much smoother.

Textbook and Course Material Strategies
Textbook costs can devastate college budgets if not strategically planned. Instead of automatically buying new books from the campus bookstore, explore these alternatives:

1. Rental options
2. Used book marketplaces
3. Digital versions which often cost significantly less than physical books and are much lighter to carry!
4. Library reserves where professors sometimes place required texts
5. Book sharing with classmates

Many students spend $400-$600 per semester on books and materials. Calculate textbook costs into the semester budget rather than being surprised by them and having to charge it to a credit card. Food and meal planning beyond the dining hall meal plans provide convenience but rarely offer good value for money-conscious students. Without a meal plan, grocery shopping and meal prepping become important skills. Budget-friendly college meal strategies include:

• Meal prepping on weekends to prepare meals for busy weekdays
• Strategic grocery shopping with lists, store brands, and seasonal produce
• Kitchen equipment investments like slow cookers, rice cookers, and basic cooking tools
• Meal sharing with roommates to split grocery costs and cooking responsibilities
• Campus food pantries and community resources for additional support

Learning to eat healthy and stay within budget represents one of the most practical life skills college can teach.

Building Credit Responsibly During College
The college years are a great time to start building credit history. However, be strategic to avoid long-term financial problems.

For some students, it might be better to wait until after college to get their first credit card. Instead, they should focus on building a good banking history by managing checking and savings accounts responsibly.

Alternative Methods to Build Credit
There are other ways to build credit history without getting credit cards:

• Becoming an authorized user on a parent's credit card with good payment history
• Student loans which report to credit bureaus when paid on time
• Secured credit cards which require cash deposits that become your credit limit
• Credit builder loans offered by some credit unions specifically for building credit

These methods offer safer ways to build credit history. They help avoid the temptation to overspend that comes with traditional credit cards.

Taking Action for Your Financial Future
Building strong financial habits during college doesn't happen by accident—it requires intentional planning and consistent execution. Rather than waiting until financial problems arise, plan ahead to establish the money management skills necessary to be successful.

The good news is that smart money management during college doesn't mean missing out on the typical college experience. It's about making thoughtful financial decisions that support long-term goals while still allowing enjoyment during these formative years.

Ready to take the next step? If you need help creating a college budget or developing a financial strategy, the Financial Coach team and I are here to support you. Simply make an appointment and let's get started on your financial success story.

Veronica Balderas Financial Coach

About the Author With over 15 years of experience in the financial services industry, Veronica Balderas is a certificated financial coach who helps individuals learn techniques and gain knowledge to manage their finances. She works with members who want to tackle debt, build savings, and create budgets. For the past five years, Veronica has provided members with the tools to create personalized financial plans that align with their goals. She offers information regarding budgeting, savings strategies, and spending plans to help members stay on track for long-term financial stability. Whether you're working to pay off debt, improve your credit score, or navigate a major financial change, Veronica provides practical advice. She focuses on building financial literacy and attacking complex challenges. Her hands-on approach ensures members are able to gain a better understanding of their finances and a clear plan for the future.