For a lot of young adults, college represents the first real opportunity to handle their own personal finances. In order to help with the
transition to financial independence, Century Next Bank has outlined eight suggestions for college freshmen.
“As you transition into college, managing new daily tasks while keeping up with your finances can be challenging,” says Heather Walsworth, Vice President of Relationship Banking at Century Next. “College comes with many expenses, so it’s crucial to establish healthy budgeting habits from the start. The first year is the ideal time to monitor your spending and take control of your financial future.”
CNext offers the following tips to help ease the transition to financial independence for college freshmen:
1. Make a spending plan. Consider your income, your goals, your needs, and some of your “wants” (such as tickets to concerts and other events), as well as emergency savings and recurring costs that must be covered (such as books, tuition, and auto insurance). Century Next Bank online banking offers a handy budget tool that is a great place to start.
2. Keep an eye on your spending. Make a spreadsheet to track your monthly expenses. Charting your spending patterns can assist you in determining areas where you may need to make changes. CNext customers can quickly track spending with the CNext mobile app.
3. Make a monthly savings deposit. Commit to making a savings deposit each month, even if it is just a small amount. At the end of each month, save your spare change and deposit it into your bank account. Raise the sum by $5 every three or four months. This is a simple, doable approach to create sound financial practices that "Future You" will value. Opening a savings account can be hassle free at CNext. We even have the option to round-up your daily debit card swipes so that the change is automatically deposited into your savings account! Ask one of our Relationship Bankers about Round Up Savings. You can also read about all of our Century Next Bank savings products here.
4. Open an account that will earn interest. Put some of your cash from your high school graduation into an interest-bearing account. For instance, when you open a certificate of deposit (CD), you agree to let your money “sit” for a predetermined amount of time in exchange for earning interest. If you prepare properly, you can have CDs mature at the exact time you need them to cover tuition and other costs each semester. Another smart option is an interest-bearing checking account, like Priority Checking at CNext, which goes hand-in-hand with a Priority Savings Account.
5. Make use of the resources on campus. Many amenities are available to students at universities for very little or no cost. Benefits like shuttles to off-campus locations and free use of the campus rec center should be taken advantage of.
6. Take advantage of student discounts in the community. Look for businesses that provide student discounts when you want to treat yourself or want to escape the campus dining halls. Typically these places accept your campus ID as proof of identity, and the discounts typically range from 10 to 15 percent off.
7. Build your credit sensibly. Consider obtaining a student credit card, which you can use for modest expenses that you can settle in full each month, such as a streaming music membership. Alternatively, you can ask your parents to add you as an authorized user on one of their credit cards so that you can build credit if you don't have a source of income of your own or if you feel uneasy managing credit on your own. Credit doesn’t have to be scary, but it must be managed.
8. Ask for help. This is a learning opportunity, just like in the classroom. Ask dependable people like your parents or your bank for assistance if you need it or have questions about a financial matter.
Students, we invite you to come in and experience Century Next Bank’s exceptional customer service and convenient personal banking products. Let us help you find the right account to fit your financial needs as you begin this next stage of your life!
