Sara Wilson, director of product innovation at Student Connections, says that the financial choices made during university have a lasting impact on a graduate's security once they start their first job. She and other experts outline seven actions students can take now to build a solid monetary foundation.
1. Build credit early
Courtney Alev, consumer financial advocate at Credit Karma, explains that a credit score is a numeric assessment used by lenders to gauge repayment risk. Scores range from 300 to 850, and a low figure can make loans, mortgages and even insurance more expensive. Alev advises students to begin with secured credit cards or student cards, which require a refundable deposit or have lower limits. The key, she says, is to spend only what can be repaid in full each month.
"College is an ideal time to start building a credit report, because the earlier you start, the more time you have for that credit to build and then work in your favour when you eventually need it," Alev said.
2. Create a realistic budget
Many students juggle part-time jobs, scholarships and family support, making budgeting essential. Wilson describes budgeting as a plan that matches financial goals with spending. Financial therapist Lindsay Bryan-Podvin suggests breaking monthly bills into weekly targets to smooth out irregular income. For a £1,000 rent, for example, students should aim to set aside £250 each week.
3. Establish an emergency fund
Before venturing into investments, Alev recommends saving enough to cover several months of rent and essentials. The power of compounding interest will reward those who first secure a safety net.
4. Discuss money openly with peers
Bryan-Podvin notes that honest conversations about spending limits can prevent peer pressure from leading to overspending. Clarifying priorities, such as a gym membership versus take-away meals, helps maintain financial discipline.
5. Plan for student-loan repayment
Understanding the total amount borrowed, expected repayment totals and future monthly payments is crucial. Wilson stresses that informed borrowers are better positioned to manage debt after graduation.
6. Use campus financial resources
According to Phil Schuman, executive director of the Higher Education Financial Wellness Alliance, universities offer free advice through libraries, student-life offices and recreation centres. Staff are there to guide students without judgement.
7. Accept mistakes and move forward
Schuman reminds students that financial missteps are normal. He advises acknowledging errors, seeking help and correcting course rather than feeling discouraged.
By adopting these seven habits, students can turn their university years into a training ground for lifelong financial wellbeing.