College is a time for learning, both in and out of the classroom. And one of the most important lessons to learn? Managing your money. Like how to stretch your budget, dodge debt, and still have pizza money by Friday. So, before you spend that refund check or swipe that card, let’s look at three common mistakes students make, and how to avoid them.
1. Overspending Student Loan Money
One way students often get into financial trouble is by misusing student loan funds. If you’re like many students, you’re relying on student loans. When you receive your student loan check, you might be tempted to use these funds for other expenses, like a spring break trip or other lifestyle activities. Typically, financial aid is to be used for educational expenses only. If you receive any excess funds, consider returning them to the loan servicer to help reduce the overall amount you borrow while you’re in school. The less you borrow, the less you’ll pay in interest charges over time, which means a lower monthly payment in the future.
PSECU Pro Tip: Stick to your budget and use digital banking to monitor your spending 24/7.
2. Ignoring Credit
Your credit score might not be top of mind now, but it plays a big role in your future, like getting approved for an apartment, car loan, or even a job. A good way to start building credit responsibly? Consider a low-rate option like our Secured Visa® card. Many college students ignore their credit until after mistakes have been made. Any missed payments or negative marks can stay on your credit report for up to seven years in most cases. You can access your credit report for free once a year from each of the three credit reporting bureaus at www.AnnualCreditReport.com.
PSECU Pro Tip: Make sure to pay on time and stay within your limit.
3. Skipping Savings
It’s easy to put saving on the back burner when your budget feels tight. But having even a small can give you peace of mind when life throws something unexpected your way.
PSECU Pro Tip: Saving doesn’t have to be huge to make a difference. Start with something small from each paycheck or leftover cash from your monthly budget. Over time, those smaller amounts can add up to a big safety net.
Smart money habits start now. For more tips, tools, and financial resources, visit our resource center.
The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.