Alex Mosher

Staff Writer

For most, college is the first time a person becomes financially independent.

Monthly expenses such as rent, Wi-Fi, phone and car payments become student responsibility in what seems like a blink of an eye.

“Budgeting is the key to financial stability, and yet only 41% of Americans currently do so,” said Jacob Landuski, who writes for Credit Card Insider.

Budgets can help students limit their spending and classify needs versus wants, ultimately creating more savings in the bank for emergencies or leisure. Building credit, another key facet of financial stability, can prepare students for major purchases in the years after graduation.

But budgeting, saving and building credit aren’t always easy.

Here are five basic tips for college students (or anyone hoping to become more financially savvy) to begin their journey toward financial stability.

1. Start by looking at your previous spending habits.

By doing so, you can see what you are doing right and what you are doing wrong. You can begin a basic guideline of what needs to change and take your first step.

2. Use an app.

Many free apps are available in an app store for download. Some even focus on specific goals.

For example, if you are needing more help with money management, try the Mint app. Need help getting out of debt? Try the You Need A Budget app. The Wally app helps to track expenses and Acorn is used to help with savings.

3. Hide your spare change.

All those nickels add up. Whenever you receive change, stash it in a jar, in your car or in a separate savings account and let the interest build.

Give yourself a time limit of several months until you cash it in. Most banks have a change counter machine that is at your service, so you can avoid taking a few hours to organize your coins into rolls.

Talk with your bank to see what programs they offer to help with savings. For example, Idaho Central Credit Union offers a “Central Savings” account that rounds up every transaction to the nearest dollar and adds it to your savings.

4.Leave your card at home and use cash for your spending.

By leaving your card at home, you can have more self-control on your spending. Bring a set amount of cash with you and stick to that amount.

Ask yourself what you need and what you want and set a limit for both.

Don’t stash cash in a secret pocket as a “just in case I go over my budget” fund. This defeats the purpose of setting a budget in the first place.

“I found that by bringing cash with me instead of my card, I spend a lot less money on useless things and more on what I actually need,” said Merisa Olufson, a first-year radiology tech student at ISU. “I wish I did this sooner.”

5. Start building your credit now.

Many students know that building credit is important, but don’t take the time to start. However, most financial gurus consider building your credit at an early age very important.

Your credit history plays an important role in your future. It impacts the ability to get a credit card, secure loans, rent or buy a home, purchase insurance and even buy a smartphone plan.

Start out by opening a credit card with a small limit, like at a store or gas station. Make your payments on time or early. If you can’t get a card on your own, ask a credible source to be your cosigner. This will help your credit and theirs as well.

“Credit card companies actually make student credit cards,” Lunduski said. “These student-focused cards are designed around having no annual fees, so they’re free to have as long as you can remain disciplined while using it.”