Financial Tips for College Students

Presented by Marc Aarons

As a new school year begins, I wanted to reach out and provide some valuable financial tips and advice for college-bound kids.

Being financially responsible is an essential skill that can set students up for long-term success. Here are some foundational concepts to guide them:

What Every College-Bound Student Should Know About Budgeting and Finances

• A checking account balance isn’t an accurate representation of available funds. Relying solely on the account balance may lead to overspending and financial difficulties in the future.
• Budgeting is a crucial life skill that requires practice. Even with limited income, learning how to budget now lays a solid foundation for financial success in the long run.
• Utilize budgeting apps like Mint, YNAB, GoodBudget, and PocketGuard. These tools can help manage income and expenses, set savings goals, and stay on top of a budget – all from a smartphone.
• Establishing an emergency fund, no matter how modest, provides a safety net for unexpected expenses such as bills, medical costs, or vehicle repairs. Saving even a small amount each week can add up over time.
• While academics can be demanding, there are flexible part-time job opportunities available for college students. Consider options like pet sitting, babysitting, and housesitting.
• Encourage students to think about investing for the future. Small investments made early can yield significant returns over time. Use this compound interest calculator to see the potential results firsthand.

A Quick Word About Credit Cards

Credit cards can be powerful financial tools when used responsibly. Unfortunately, many college students sign up for credit cards without fully understanding how they work. It’s important to have a conversation about credit cards and offer these guidelines:

• Avoid impulsive purchases.
• Pay the credit card balance in full and on time to avoid interest charges and late fees.
• Keep credit card balances low.
• Regularly review credit card statements for any suspicious activity.

I hope you find these tips helpful. Feel free to share this information with anyone who may benefit from it. If you have any questions or need personalized advice, please don’t hesitate to reach out. I’m here to provide support in any way I can.

Marc Aarons may be reached at (714) 887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.