PHOTO: GETTY IMAGES 

August 2018 

Finance 101 

“Learning and 

practicing the 

fundamentals of 

money management 

now can set you up 

for fnancial success 

in the future.” 

the course of the school year. Next, make 

Fall is an exciting time for many college 

students. Making new friends and settling 

into a new environment can be fun, but 

it also comes with new responsibilities. 

Whether it’s your frst year in college or 

you are a returning student, adjusting to 

new classes, studying, trying to ft in social 

activities, and fguring out your fnances 

can be overwhelming. 

So while you are of stretching your wings, 

here some tips for stretching your wallet: 

1. Know your budget

Knowing your budget puts you in 

charge of your money. Tis is essential 

to successfully managing your fnances. 

A budget helps you track your income 

and expenses and allot specifc amounts 

of money for spending. 

Take action now to avoid fnancial 

hardship in the future. Start by 

recording all of your income, such 

as wages, stipends, and money from 

parents, and consider any anticipated 

changes to your income or expenses over 

a list of expenses, such as utilities, rent, 

school supplies, personal items, food, 

and entertainment. Include as much 

detail as possible in your budget to 

make it easier to track your money. 

Try using an online personal finance 

management tool or downloading a 

mobile app that will create a budget for 

you to make it easier to stick to your 

budget. Regardless of the method you 

choose, consistency is the key to successful 

fnancial planning – be sure to spend time 

on your budget on a regular basis. 

For more information on working 

with a budget, visit the Department of 

Education’s website at https://

studentaid.ed.gov/sa/prepare-for-college/

budgeting/creating-your-budget. 

2. Research financial institutions

Choosing where you bank is an important 

decision because financial institutions vary 

by the number of branches and ATMs 

accessible in your area, the fees charged for 

services, and products offered. Check out 

different types of institutions, including 

national banks, community banks, credit 

unions, and your college credit union (if 

available). A college credit union may be a 

good option, as they generally offer the 

convenience of on-campus branches and 

ATMs, as well as credit cards and loans 

geared toward students. Also, think about 

the features that are most important to 

you, such as free student checking and 

savings accounts, reimbursement of fees if 

you use an out-of-network ATM, online 

bill pay, and the ability to transfer funds 

from one institution to another. Be sure 

to read all of the disclosures provided 

when you open an account to ensure that 

what you’re getting is accurate 

FEDERAL DEPOSIT INSURANCE CORPORATION 

consumer news 
and consistent with the terms and fees 

disclosed. Also remember to incorporate 

account-related fees into your monthly 

budget. 

3. Be mindful when using your

checking account

If you are opening a new checking 

account, you will likely have access to 

a debit card to make payments and 

purchases, online bill pay services, and 

apps that allow you to send money to 

another bank account. Tese options are 

convenient, but with so many available to 

use, it’s easy to lose track of your account 

balance. If you withdraw cash without 

enough funds to cover the transaction, it is 

considered an overdraf, and the bank may 

decline it and charge you fees. Most banks 

ofer overdraf coverage programs, if you 

opt-in, and will process the transaction 

even when you don’t have enough money 

to cover it, but you are still required to 

pay back the transaction cost along with 

additional charges for the coverage. 

To avoid these issues, maintain an 

accurate record of all of your transactions 

and keep track of your account balance in 

your checkbook register, budget app or 

sofware-based tool every time you make 

a deposit, write a check, use the ATM, 

use your debit card, pay a bill online, or 

transfer money. 

Sign up for account alerts, if your bank 

ofers it, which sends automatic text 

messages or emails to notify you of a 

low or negative balance. Also, carefully 

review your monthly account statements, 

and if you see an error, notify your bank 

immediately to correct the mistake. 

4. Use credit wisely

As a college student, you will be inundated 

with credit card ofers. For some, this 

may be the frst step in building credit. 

While building credit is important, 

understanding how to manage it is equally 

important, since your credit report will 

be checked when you apply for a job or to 

rent an apartment. If you decide to apply 

for a credit card, look for a card with a 

reasonable interest rate and no annual 

fee. Avoid using your card impulsively 

and charge only what you can pay of the 

following billing cycle. As long as you pay 

the card balance in full by the payment 

due date each month, you won’t be 

charged any interest or fnance fees. 

Te Truth in Lending Act provides 

consumers with protections when dealing 

with lenders and imposes requirements 

on banks when ofering credit, including 

special provisions for borrowers under 

the age of 21. For more information, visit 

https://www.fdic.gov/consumers/ 

assistance/protection/choose.html. 

5. Pay yourself frst

Saving money in college may seem 

impossible when funds are already scarce, 

but consider opening a savings or money 

market deposit account to regularly set 

aside money and earn some interest. Treat 

savings like a bill and pay yourself first, 

even if it’s not much. You will be surprised 

at how consistently saving a seemingly 

insignificant amount of money adds up 

over time. Setting savings goals that are easy 

and manageable creates a habit of saving 

that will continue well into the future. 

Managing your fnances while at college 

does not mean you have to miss out on 

having fun. Stick to your budget, explore 

your fnancial options, look for student 

deals that include discounts on text books, 

control your credit card usage, and save as 

much as you can no matter the amount. 

Learning and practicing the fundamentals 

of money management now can set you up 

for fnancial success in the future. 

For more help or information, go to www.fdic.gov or 

call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342). 

Please send your story ideas or comments to Consumer Affairs 

at consumeraffairsmailbox@fdic.gov