Back to School Playbook for Financial Wellbeing
August 20, 2024
Whether you are off to college for the first time or the fourth time it is always good to take stock of your financial situation at the beginning of the semester to maintain financial wellbeing throughout the year and into adulthood. At Affinity we are always looking for ways to make sure our members are equipped for their current life chapter and their future. As a college student, you are uniquely positioned to establish good financial habits that will shape your lifestyle long into the future.
How is that so? From student loans and credit cards to savings and investments, establishing goals early is the best way to ensure you will set yourself up for success as you grow your income. You might have a job currently to cover your day-to-day expenses as a student, or you might be interviewing and preparing to enter the workforce in the coming year, all of this is great! And complemented with a strong sense of financial wellbeing, it’s the foundation of a happy life.
Making good decisions around debt is one of the most important things for college students to do during college years. As you enter into your earning years and start repaying those loans the terms and interest rates can have a huge impact on your ability to purchase a home or car, and access other types of credit. It is also essential to not acquire credit card debt as a college student. This is a time when you are building a credit history and having high balances can negatively impact your credit over time even if you are making timely minimum payments.
As you build your life around your income it is a good idea to start building savings into that lifestyle. If you design your living costs around putting 15% of your income away towards retirement you do not have to worry about factoring that in later when you might have more firm costs like rent, car payments, utilities, and groceries. Establishing savings habits and setting goals as soon as you start earning an income can eliminate the burden of saving later on.
While you are in school it’s important to maintain your overall wellbeing. By having a solid financial foundation through budgeting and good decision making, your financial wellbeing will flourish. If you are worried about previous decisions around loans, credit cards, or establishing a budget, Affinity has Wellbeing Coaches to help you get back on track and set goals to work towards. To schedule an appointment, visit our Wellbeing Coaches webpage1. We also offer various webinars and financial education free for members available here2. Through our Enrich3 partnership you can take course and use the various tools to enhance your knowledge before you start your school year.
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person's circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.
1Retrieved from: https://www.affinityfcu.com/financial-wellbeing/certified-wellbeing-coaches
2Retrieved from: https://www.affinityfcu.com/financial-wellbeing/wellbeing?&
3Retrieved from: https://affinityfcu.enrich.org/