Full Circle Part 8/12: Financial Literacy
College students are always calling themselves broke.
They’ve been doing it for decades, and the phrase likely isn’t going anywhere. Often, they’re not wrong - just in the earliest stages of learning how to manage their own funds.
College is expensive, and when you start to understand the hidden daily costs that arise as an adult, financial mistakes tend to occur. Financial literacy is seldom taught, albeit an imperative stepping stone to success. Most of what is learned regarding finances is from hearsay and learning through failure.
As is the common theme, there’s tons we wish we knew earlier in college, which is why in Edition #8 were covering the necessary topic of Finance and Budgeting.
The reality is that everyone comes into college in different financial situations. Some may have some savings they can coast on for the next four years, and for some getting a job is their first priority after arriving on campus. Conversations around money are often taboo, but with almost everyone on the same playing field in college, it seems the discussion is had more often than in other environments.
What we’ve learned over the past four years is that money is simply a finite resource you’ll always wish you had more of. Sure there’s an amount out there that will take the pressure off, but realistically you will have to consider it each and every semester.
As with most of the things we’ve covered in this newsletter, budgeting is all about habits. The way you spend your money on food, Ubers, and your beer tab directly affects the amount left for your spring break trip. The earlier you come to realize this, and start to think about how you’re spending, moreover how you’re saving, the sooner that pressure alleviates itself.
Don’t be mistaken, we would never tell you not to spend your money on food, Ubers, and your beer tab. If there’s one theme of this entire series it’s that college should be an unforgettable and incredible four years. Thinking about the dollar sign on every decision you make won’t lead to an awesome story. Thinking about your smiles per dollar will lead to an awesome time in college.
There’s tons of different small habits that can add up by the time your monthly statement rolls around. For example, cook at home with your friends instead of hitting Chipotle. You’ll end up saving a lot of money and build some fun memories in the process.
While we’re here let’s do the math: A chipotle bowl costs ~$11 at the minimum. Sure it’s convenient, but get some chicken, rice, beans, and whatever vegetables you want and you’ll save more than a couple bucks.
In college, you start to assume the power to pay for convenience around the things you don’t want to do. Cooking vs. spending money on food is probably the convenience that we think of most, don’t even get us started on delivery. Enjoy the ride, enjoy the food around you, and don’t leave college without trying every single spot on campus. At the same time, don’t use that as an excuse to have a fridge that looks like this:
That’s enough on food.
One additional piece we want to discuss is credit. This is the quintessential idea of finances in late high school and college… for a reason. It’s not hard, get your credit card if you haven’t already, start spending on it and paying it on time. The biggest barrier to building strong credit is history, and you’re hurting yourself by waiting to get one. It’s simply too easy, and there is a concrete advantage to starting earlier.
Your goal can be as simple as coming out with a better financial position than you came in with. Don’t stress about it now, but there’s a security deposit ahead when you move into your first apartment, and other random costs you’ll incur as you start your adult life. At the end of the day, the habits you build now will serve you well in the future.
Understanding the WHY behind managing your funds is only part of the equation. The other, more important part, comes from HOW you put the principles into practice. This is difficult to do with money moving from so many different places; venmo, debit cards, savings accounts, etc.
Below are some great resources we’ve found of the years that you can take advantage of throughout college:
Microsoft Excel / Google Sheets - Choose your software of choice, but this is likely the easiest way to get started tracking your finances. It’s relatively high-touch and will require the most work on your end, but there are hundreds of templates out there to help you get started. If you’re completely lost on where the majority of your funds are being spent each week/month, this a great starting point to get a better understanding of the breakdown.
Mint - Mint is a free budgeting app that's great for busy students. By connecting to your accounts, it automatically tracks your spending and categorizes your expenses. Mint also sends bill reminders and alerts you when you're close to going over budget, making it easy to stay on top of your finances.
Scholarships.com - This is a free database matching students to thousands of scholarships based on your profile. Simply enter your academic details, interests, and background to discover opportunities ranging from $500 to full-ride scholarships that never need to be repaid. Updated regularly with new awards tailored to your unique qualifications.
Credit Karma - Credit Karma offers free access to your credit scores and reports. It sends alerts when your score changes, explains factors affecting your credit, and provides personalized financial product recommendations. The service includes educational resources specifically designed to help college students build credit responsibly from scratch.
Student Plans - Many companies offer significant discounts exclusively for college students. Amazon Prime Student gives you six months free and then 50% off regular Prime membership with all the same benefits. Streaming services like Disney+, Spotify, and Hulu offer bundled student rates at nearly half the standard price. Beyond entertainment, look for student discounts on essential tech (Apple, Microsoft, Adobe), transportation (Amtrak, many airlines), clothing retailers (American Eagle, ASOS), and even insurance companies. Most require verification through your .edu email address or a service like SheerID or UNiDAYS, making these savings easy to access while your student ID is valid.
Free Things - Campuses are packed with free opportunities if you know where to look. Club fairs, recruitment events, and organization meetings regularly offer free t-shirts, water bottles, and branded merchandise just for attending. Follow your school's event calendar and campus groups to easily track "free food" events.
Four years later, here’s how we’re thinking about budgeting:
Sam: Similar to my spotlight on building a media diet, my process of managing my finances has changed drastically over the past 4 years. My freshman and sophomore years my budget mostly consisted of a dining meal plan, and as life has transitioned to an apartment I’ve begun managing my finances on my own. Initially, I was tracking every item in an Excel sheet I built from scratch. This was incredibly time consuming and after about 4 months switched over to Quicken, which is highly similar to Mint. I’ve been using this for about a year, and it’s one of the best things I did. In one place I’m able to see all of my financial accounts and see where I’m spending most of my money.
Jon: I’ve never been a great tracker of my budget. My first three years my budget was nonexistent, as in I was spending money unchecked. Once I went abroad that changed, I set goals, decided a number, and most importantly stuck to it. I don’t use many apps or limit myself, but I try to stay as aware and close to the number I have for myself in my head. Taking opportunities to get things paid for through school, or free things from your school as mentioned above are awesome ways to bridge the gap and save some money. I’d emphasize that although I’ve made some stupid, stupid purchases throughout my time in school, I wouldn’t take any of it back in exchange for the memories I’ve made. It’s almost too corny to say, but you won’t think about the $20, $30, $50 you wasted, you’ll remember what you didn’t.
College is not a period of your life when you will ever feel totally “comfortable”. Operating on the bare minimum in some ways is necessary, we’ve all heard those older than us say they wished they’d “lived it up more”. You are in that time now.
Budgeting properly and managing your finances is a great way to equip yourself with the freedom to “live it up”. Do not get lost in tracking down that $5 Venmo or letting eating out bring down your day, but be proactive and take control of your money. Your time in college is as finite as the money you have… make the most of it.