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College is a time of freedom and firsts: your first apartment, first real job, and likely your first credit card. You’ll learn a lot about managing your money and building financial independence along the way. While there may be some ups and downs, understanding how credit works can set you up for success after you leave campus. Ten students from colleges across the United States share the financial habits they’re currently building with their student cards.
1. You’ll determine your wants and needs
With a credit card, it’s easy to spend without thinking much about your purchase. Unlike using cash, you don’t physically see the bills leaving your hands or notice your account balance dropping right away, such as with a debit card. Rachel, a student from East Tennessee State University, shares how she avoids impulse buying by pausing to see if she truly needs what she’s buying:
“I am a 19-year-old girl in college, of course, I love to shop with my friends! When I am at the store and I see something I love, I ask myself, 'Is this a need?' And 9 times out of 10, if the answer is no, it goes back on the shelf. Sifting through my purchases with this mindset has helped me avoid spending money on useless clutter that I don't need.”
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Rachel W. East Tennessee State University |
2. You'll establish boundaries with others
It can be awkward when friends or family ask you for money. You want to help, but you also know there’s a chance they won’t be able to repay you. Remember, making timely payments is one of the most important factors in maintaining a good credit score. If you’re not able to pay back your balance (or your friend’s balance on your card), you will be charged interest. A Miami Dade College student shares one circumstance where she chooses not to use her credit card:
“It may seem kind to let friends or even family put their expenses on my card, but at the end of the day, the responsibility for payment falls on me. If they don't pay me back, I am the one left with the debt, the stress, and the damage to my credit. I know how easy it can be to feel pressured into helping others financially, but I also understand that setting boundaries is part of being responsible. I want my credit card to be a way to build my financial future, not something that creates problems because of choices that aren't even my own.”
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Katherine J. Miami Dade College |
3. You’ll learn to budget
Many students lack a proper college budget, and even fewer stick to one. Since your credit card spending is separate from your bank account, it may be easy to lose track of where your money is going. If you’re new to budgeting, you can start with the 50-30-20 budgeting rule: start by dedicating 50% of your income to needs, 30% to wants, and 20% to savings. Caden from UW - La Crosse shares the budgeting methods he relies on:
“It is very rare to find college students that know how to properly budget even though this is the most important time to know how to budget due to students having lower incomes. The way I have been building this habit has been by using an excel budgeting template and keeping track of all my expenses on a monthly basis with it. So far, this has served me very well, and it will be a habit I continue to uphold for the rest of my life.”
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Caden T. University of Wisconsin-La Crosse |
4. You’ll watch your credit utilization
One of the factors that the three major credit bureaus use to determine your credit score is your credit utilization ratio. Essentially, this ratio is how much credit you’re using over the credit limit available to you. The lower the ratio, the better your application may look to credit card companies or other lenders. This shows your ability to smartly manage borrowed money. Boise State University student Madison shares her simple rule for keeping her credit use in check:
“The first thing that I stay aware of is my card limit and usage as I don’t want to max out the card. I try to stay within 30% of my limit meaning if I have a limit of $10,000, I should only use about $3000 of that. This proves to the credit bureau that I can manage a budget and that I am not reckless with my usage.”
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Madison H. Boise State University |
5. You'll only spend what you can pay back
Some college students may become tempted to charge whatever they want on their card. While it may not seem like much, a $12 sandwich here and a $7 smoothie there can really add up over time. This is especially true when you factor in the interest rate, if you’re not able to pay in full by your due date. Dalton, a student from the University of Arkansas at Little Rock, sticks to one credit card accountability rule:
“The most important rule is to only spend what you know you can pay back at the end of the month. If I cannot pay it off in full, I avoid using it. This habit helps me stay away from interest charges and prevents me from falling into debt while also helping me build a strong credit history for the future.”
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Dalton P. University of Arkansas at Little Rock |
6. You'll start saving for emergencies
Credit cards can be helpful in a pinch, like when you need to replace your car battery or have to purchase an additional textbook. Life is full of these little surprises, and having a backup plan for emergencies is a smart move. That being said, it’s best not to rely solely on your regular credit card for these unexpected costs. A student from West Coast University shares how she sets aside some money to be ready for emergencies:
“Another thing that I’ve found to be very useful is having an emergency fund. Each month, I deposit a certain portion of my paycheck to my savings account. This is so that I have extra cash in case of any kind of emergencies, such as school fees, flat tires, emergency surgery, all of these being real life scenarios that I’ve encountered and have benefited from with the help of the emergency fund I built for myself.”
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Alicia A. West Coast University |
7. You’ll learn from the mistakes of others
Applying for a credit card is a big step, and it helps to hear from people who have already been through the credit card application process. Talking to experienced and responsible money managers can give you insight into what to do (and which money mistakes to avoid). Ethan shares what he learned from watching his mom navigate financial challenges:
“I comprehend the struggle with credit cards cause I saw my mom go through it. I remember when she filed Chapter 13, because everything became overwhelming with only one income…The biggest lesson I have taken from my mom’s struggles is to pay off the balance in full. I know paying only the minimum makes the debt grow, no matter how hard you try. I don’t want to get trapped in that cycle. Even if it means saying no to things I want in the moment.”
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Ethan A. University of Louisiana at Lafayette |
Now that you’ve learned about the benefits of credit cards for college students, you’re ready to start implementing better money habits into your own life. Whether that means cutting back on spending, setting boundaries around money, or building a stronger savings routine, every small step counts. Building your credit history and practicing good habits while you’re in college will help you feel more confident managing money once you step into the “real world.”
