4 Great Financial Choices For College Students

Friday, July 10th, 2020
young woman in front of laptop stress-fully biting pencil

College students often enter a new world once they leave home. From choosing a financial institution to managing credit cards, finances can be an overwhelming part of that change. But, managing money doesn’t have to be complicated. Here are some of the best financial choices you can make if you are a college student.

Join a credit union

Most young adults use their parents’ bank or credit union because it is easy. This is usually fine, especially if they are members of a credit union. But, if your parents use a large bank, consider branching out and finding a local credit union.

What is a credit union?

Credit unions are financial institutions that are made up of members only and are not-for-profit. Because of this, the profits are returned back to the members in the form of lower interest rates on credit cards and higher rates on savings accounts.

Credit unions and credit cards

Colleges often have booths set up for new students. These include booths where you can get cards from major companies and banks. Avoid these if you can. Their credit cards and memberships do not come with the benefits that credit unions offer. For example, these institutions often offer cards with 25% to 30% interest. Credit unions can offer much lower rates as well as lower fees.

Other benefits credit unions offer

There are many other benefits you can get from joining a credit union! Here are just some of them to consider BEFORE going to college. After all, you don’t have to join a credit union in another city or state: there are probably some great local ones near you now.

  • Most credit unions insure money in savings and checking accounts, up to $250,000, through the National Credit Union Administration.
  • Credit unions offer financial education and assistance.
  • These institutions offer the same services and products as large banks, if not more. This includes safe and secure mobile banking, savings and checking accounts, credit cards, and loans.

Open up a checking account

Whether you choose to bank with a major corporation or a credit union, you should open a checking account. This will give you a place to secure your money and access it whenever you need it. Be sure to do some research on the differences between checking accounts at banks and credit unions though.

Start a savings account too

This may seem hard to do, especially if you are on a tight budget like most college students. But, it is a good financial choice to make no matter how much money you have to spend. Having one of these accounts helps you learn to budget and have discipline when it comes to spending. You will also see returns on your savings deposits if you have an interest-bearing account. Again, make sure to research what credit unions can offer compared to large banks.

Learn about managing your finances

It is important to understand how to manage your money. This doesn’t mean you have to be able to invest a ton of money and make a profit. You should be able to know how to save and spend reasonably, though. Credit unions offer personal service, so they are a good source of help if you want to learn how to manage your finances.

Interested in joining a local credit union?

To learn more about making solid financial choices, give Borger Federal Credit Union a call. We provide a variety of products and services and are focused on providing the best service to our members. You can reach us at (806) 273-9506 for more information on how to become a member.