Leah Backstrom
Communications & Digital Marketing Specialist 
leah.backstrom@border.bank
701-532-3641

Congratulations! You’re going to college, now what? Education is a worth-while, albeit expensive investment, but you don’t have to go broke pursuing it. Take it from me: a once-broke, now financially independent college student.

Now, you may be thinking, “But Leah, I already took out a loan and I won’t need to pay anything back until I graduate, so I don’t have to worry about that now, right?” WRONG – There are many things that you can do TODAY that will help manage your college finances and gain independence tomorrow. I have five steps to get you started on managing your money the right way the first time.
 

Step 1: Understand Your Income.
“Act your wage. People who win with money live on less than they make. Period.” – Dave Ramsey

• Know your income. Are you working through college or taking out loans? Either way, you will have to have a clear idea of how you are paying your tuition and living expenses through college.
• Open a bank account and start saving now. Having your money in all one place so you have a clear picture of your financial situation is the first step to planning. Save your money securely rather than carrying cash around. You may be two weeks away from going to college or just moved in today, but you should start saving NOW. You’ll be happy you did!
• Live below your means. Whether you are paying out of pocket or with financial aid, it’s important from the beginning to have a clear understanding of your income for the entire semester. Being frugal from the beginning will help you make it to the end of the semester without counting the pennies until your next loan/paycheck comes in.
• Apply for scholarships. Complete financial aid forms, especially a FASFA form because it does not cost anything to fill out.  Filling out applications for scholarships takes minutes compared to the months (dare I say years?) of potential debt you will be facing once you have your degree.

Step 2: Budget with Hard Boundaries.
“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

• Project expenses and create a budget with boundaries you can stick too. Every penny that comes from your income should be accounted for. Start simply by making a list of all your expenses. Factor in your bills, as well as going out with friends, buying clothes, and other “non-mandatory” expenses you will encounter each semester. Make sure it’s realistic to your lifestyle.
• Stop buying things you don’t need. I repeat; stop buying things you don’t need! Food is necessary, eating out is not! Personally, the biggest cost for me during college was food. Weekly late-night runs to Buffalo Wild Wings adds up over time. Remember: not spending means you are saving.
• Shop where they give student ID discounts. Take advantage of free activities, student ID discounts, bus passes, on campus dining and other college perks.

Step 3: Be Independent and Willing to Take Advice.
“Growth and comfort do not coincide. You can either grow or you can be comfortable. But not both.” – Christy B Wright

• Seek financial independence as soon as possible. You should be proud if you’re able to pay for tuition, your car, insurance, rent, and everything else by yourself. When you manage your money, you can start developing healthy spending habits.
• Maintain a real or digitally based job if you can. Classes and assignments should be your priority but, if you are able to take a part-time job this allows you to have a small income during your time at college.
• Research starting salaries. Know that your degree will cover tuition costs once you’ve completed it, or if you’ll need an additional source of income.
• Ask questions to your parents and your bank. Being completely financially independent right away may not be an option; it wasn’t for me. Work with your parents and bank to help you develop a plan to start saving. See if there are one or more monthly payments you can take over without overloading your budget.

Step 4: Watch Out for Scams, Avoid Memberships, and Unnecessary Fees.
“Risk comes from not knowing what you’re doing.” – Warren Buffet

• Watch out for fake credit cards…and real ones. Credit card companies will sometimes lure you in with “free money.” If an offer seems “too good to be true”, it probably is. Only apply for a credit card when you ready to responsibly build credit.
• Memberships and subscriptions can be dangerous when not factored into your budget. When you are new to managing your money, adding unnecessary subscriptions eat away at your monthly budget. ($10 a month could pay for a subscription goodie box, but it could also pay for your renter’s insurance: be mindful of where your money goes!)
• Pay your bills on time. Late fees are unbudgeted expenses that can drastically alter your income for the month. The ATM on campus is convenient but if your bank doesn’t pay the service fees for an ATM, those transactions can add up over time.

Step 5: Know Your Financial Resources.
"A simple fact that is hard to learn is that the time to save money is when you have some.” – Joe Moore

• Listen to financial podcasts or watch YouTube videos from accredited sources. With endless information at your fingertips, take advantage of apps like YouTube and Spotify. Make sure that the sources are credible.
• Read articles and posts from financial blogs. Like this one: Take Your Bank to College.
• Talk to your school and bank about income and credit opportunities. They're here to help you!

Remember, you are investing in yourself when pursuing higher educating. At Border Bank we want you to create a healthy relationship with your money and are here to help you take that first big step towards financial security and happiness.

_{Sources:
https://smartasset.com
https://www.moneyunder30.com
https://www.lexingtonlaw.com/blog
https://www.goodcall.com}