My first Quatromoney blog post was about the financial mistakes I made my freshman year of college and the lesson I learned from them: budget but don’t restrict yourself. As a third-year college student, I have dealt with various financial difficulties and decisions that have given me a new perspective on that lesson. While there is value in proper budgeting so as not to restrict oneself too much, I have learned that there’s more to personal finance than just choosing how much to spend on what and when. 

Last semester, I was fortunate enough to take a personal finance class as an elective. While I learned about important things like market volatility, taking investment risks, and what a 401k actually is, there were a lot of valuable lessons that I think college students should know to help them be financially sound both in the short- and long-term. 

Open a Savings Accounts

One lesson I learned was to start a savings account. The long-term idea of this is that setting aside a portion of each paycheck and placing it into a savings account can prepare you to handle future financial emergencies in a way that does not drain your checking account. It’s important to note, however, that savings accounts are privileged concepts–– not everyone can afford to set aside part of their paycheck when bills and rent need to be paid. If it is possible, though, building the habit of setting money aside in some capacity, or just not spending your entire paycheck when you receive it, can help you become a more financially sound being in the future. 

Build Good Credit

Another lesson was the importance of building credit. A good credit score is essential for certain future financial decisions like getting a car loan or buying a house, and while college students aren’t necessarily concerned about the latter, starting to build credit now can really help you, but only if you do it smartly. Don’t open too many credit cards, pay your bills on time, and beware of borrowing from credit card companies. 

Create a Budget

Lastly, to pay homage to my freshman self: budget. Keeping note of how much I spend each week has truly helped me figure out the best ways to spend my money so that I feel like I can have some sort of “cushion” when it comes to spending. I learned of tools like Mint that can help you track your spending and make budgeting goals. 

Another random tool I was introduced to was RealWorld playbook, which basically gives you tools that put things like paying bills, choosing health insurance, paying rent, etc. into simple terms so that you can avoid making mistakes when it comes to big life decisions. There is no college course on how to go about everyday adult decisions, but the RealWorld playbook is as close to one as you can get. 

Avoid FOMO

Lastly, and honestly most importantly, is to know your priorities and not compare your financial situation to others. It’s tough seeing people spend their money like there are no consequences, because for some, there really aren’t. But know your worth and know that the spending habits that are best for you are not shameful, and that financial awareness will help you so much in the long run.