MSU Extension 4-H Careers & Entrepreneurship

No matter if you are taking college classes during your high school years or moving into a dorm for your freshman year, being fiscally responsible while in school is an important and necessary skill. Michigan State University Extension has a few suggestions for college students to consider:

• Track your expenses and make a spending plan. To know where your money is going, you have to first track it. Whether you purchase a bottle of water or a pack of gum, keep all receipts in a folder for one month. Then go through it after 30 days and make a list of what you spent your money on. Take a picture of your receipts with a phone or use the Notes feature or other app to list what you spent each time you buy something. Create a spending plan that aligns what your monthly income is to what your expenses are. Explore ways to lower your expenses if your income doesn’t currently cover all of the expenses.
• Check out local financial institutions. Local banks or credit unions often offer student-friendly checking accounts. Look for perks such as no monthly fees, free overdraft protection, minimum balances or free ATM withdrawals. Be prepared to have the account terms change, however, as soon as you graduate.
• Credit cards. Credit cards should be used infrequently. If used, it is best if you have the funds to cover what you charge, have a plan to pay it off and pay on time. Avoid becoming reliant on credit cards and accruing a lot of debt. It is harder to repair your credit versus building your credit well from the start. Make sure you choose wisely with your first credit card and manage it appropriately. Many college students carry credit card debt averaging around $1,400, which makes it difficult to build a good credit history for bigger items, like cars or homes in the future.  
• Look at campus meal deals. Only purchase what you will actually use and adjust each semester. Take your own snacks to class rather than buying from vending machines or local restaurants. Use grocery reward cards. It sounds simple but make a list before you go shopping and stick to the list so you don’t over purchase. Buy in bulk, when appropriate, and share meals with roommates. Limit how often you are purchasing meals or drinks out, including coffee, and try to make your own whenever possible.
• Textbook options. Depending on the course, textbooks can be really expensive. There are many ways to save money through online sites like textbooks.com or Amazon that offer cheaper books. Purchasing a “used” textbook can also be a good option. Find out if any electronic or printed books are available to reserve for free through your university or even local libraries.
• Free is the best choice. Check out “free” options when looking for activities or events to attend. Free concerts, club sports and other events can also help your budget. The social media accounts of most college-related clubs or groups will often share free resources or opportunities regularly. Being active with student organizations is a fun way to meet new people and have interesting experiences with lower costs, as well.
• Save with scholarships. Find scholarships through Big Future, Fastweb or Finaid to save on the cost of tuition. Continue to apply for scholarships throughout your college years and maintain any requirements necessary for scholarships you do have. Check in with your local university colleges or departments for scholarships, which are usually offered once a year. Hometown clubs or groups and field of interest scholarships are also a good place to pursue.
• Don’t give up. There is always an option to be a part-time college student while working part-time. This may take longer, but the need for additional loans and debt could be less by the time you graduate.
• Dorm life purchases. Deciding what to bring to college dorms or apartments can lead to additional expenses. Only bring what you need, not what everyone else has. Obtain a list from your university’s residence life department to find out what supplies are needed or recommended. You can use thrift shops, free posting pages and resale shops on campus for items that can outfit your residence hall. Often you can even get items used by previous students for a free or inexpensive price! Don’t bring items that you can share or use as part of a hall community.
• Financial aid considerations. Only borrow what you need from financial aid. Use student loans if available grants, scholarships and work opportunities leave a need. Use private loans only after you have exceeded your maximum awarded federal aid. Research how the loans work and know the terms to which you are agreeing. Be aware of the repayment plan and the consequences of not paying. Use a student loan payment calculator to help estimate your monthly payments and the interest you may pay over time. Use the results to help you save money.

In the end, keep learning about money management for yourself. There are lots of educational opportunities to help support your continued knowledge around finances. Take advantage of courses, workshops or presentations that will help build your skills while at college and after you graduate. You are in charge of your financial future and setting good habits while in school will carry over into the next steps in your life.

MSU Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. As a result of career exploration and workforce preparation activities, thousands of Michigan youth are better equipped to make important decisions about their professional future, ready to contribute to the workforce and able to take fiscal responsibility in their personal lives. For more information or resources on career exploration, workforce preparation, financial education or entrepreneurship, contact 4-HCareerPrep@msu.edu.