Money Matters—Even as a Student

As a full time student, it can often feel like personal finance is a thing of your future and not something for you to worry about now.  Don’t be fooled. 

These years are prime years for setting up your financial future.

While you’re a full time student, you can make intentional decisions that will make your financial life tremendously easier upon graduation.  Here are a few suggestions:

Minimize student loans

This is easier said than done. Make sure a key part of your plan for funding school includes annual scholarship applications. Even small $1000 applications will add up, especially when you consider that you would be paying $1000 PLUS interest if you funded that portion with student loans. Seek out work-study programs. Get creative and make sure you’ve explored as many avenues as possible. 

Get in the habit of creating a monthly budget

Even if it feels like a budget is a waste of time when you don’t have an “income”, it is fundamental to keeping your expenses in check. In addition, if you’re using student loan money to pay your monthly expenses it will help you organize how much student loan money you will need to take out.  Get into the habit of tracking your expenses and using a budgeting app like EveryDollar or Mint. Once this cornerstone financial habit is engrained in your life, your odds of financial success post graduation increase dramatically. 

Avoid credit card debt and car loans

Do not add insult to injury. If you know you will graduate with student loans as is, don’t add additional debt into the mix. Again, stick with a budget and avoid carrying a credit card balance at all costs. If you need a vehicle for transportation, purchase an inexpensive used vehicle that can carry you reliably from point A to point B. This is not the time to finance a brand new car. 

Earn SOME money, if possible

It may not be possible for you to obtain a formal part time job while in school. Consider trying to earn money using online surveys, cash back programs while shopping online, or even driving for Uber/Lyft on the weekends.  Even if you make only $100/month, that reduces the amount of loans that you have to take out per year by $1200. When you factor in interest over time, it actually makes a significant difference. 

Start thinking through your plan for your student loans early

I realize your time in school is incredibly busy, but start the process early of deciding how you will approach your student loans post graduation. Learn about public student loan forgiveness, refinancing options, and loan consolidation. Consider various repayment plans. Talk to other practicing professionals to see how they approached their loans.  Get on www.unbury.me and plug in your loan information to see potential payoff numbers. Having a plan in place will reduce some of the overwhelming feelings that come from a high student loan burden.

I personally did each one of the above items while I was a full time student in PA school. I did not do them perfectly. In fact, at one point I used my student loan money to pay for expensive hair appointments and clothes shopping.  Regardless, I was able to graduate with generally good financial habits and a plan to attack my student loans. I obtained four PRN positions, in addition to my full time job, and worked 80+ hours per week. By dramatically increasing my income over a short period of time, I was able to pay off my $161,000 in student loans in 16 months.  I have since continued the same financial habits, and have gone on to pay off our mortgage by age 30. 

Your financial journey starts today, even if it doesn’t feel like it. Make sure you’re incorporating positive financial habits into your life now. When you graduate, you will be ready to hit the ground running. 

About the author:

Kristin Burton is the founder of Strive Coaching, a company designed to change the way millennials approach money. She is a pulmonary/critical care PA, and through her personal experience with crushing student loan debt has developed a passion for helping others with their finances. 

Website: www.strivewithkristin.com

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