Back to School Budgets: Financial Tips for College Students

ZANESVILLE, OH – Are you a broke college student? We all know the saying “broke college student” and that old saying may carry some truth, at least according to new research.

As hundreds of thousands of students head back to campuses across Ohio this month, the Ohio Department of Commerce’s Division of Financial Institutions is reminding them that financial responsibility is just as important as hitting the books.

“When you just graduate from high school, you’re 18 years old, you typically don’t know much about money. And yet you have this responsibility…you have to pay tuition, you have to live, you need to understand how to do that. What are your expenses? Identify them,” said Robert Rutkowski, deputy superintendent of the Division of Financial Institutions at the Ohio Department of Commerce.

To keep finances in check this school year, experts suggest overestimating expenses while underestimating income to prepare for the unexpected, building an emergency fund for surprise costs, separating needs from wants by taking an honest look at priorities, and reviewing your budget regularly to make sure spending stays on track. They also recommend using credit cards cautiously, only charging what you can pay off each month to avoid long-term debt and maintain a strong credit score.

“I think it’s important to get this sort of ‘pre-adulting’ under their belts, understand money coming in, money going out…you’re much happier if you live within your means over time,” Rutkowski said

Budgeting becomes even more critical when students move off-campus, start internships, or prepare for life after graduation. Officials also urge students to keep an eye on their credit history and use free monitoring tools so they don’t end up fitting the label of a “broke college student.”