How College Students Can Set Financial Goals
College means independence, not just when it comes to choosing courses or where to eat dinner, but in financial planning and budgeting. This first taste of increasing financial responsibility can be a challenging learning process, but there are simple steps you can take to stay on track (and you may even be able to save money in college).
- Identify financial goals. This starts with knowing what you want to accomplish with your money in the next semester or two. Is there a play or concert you’ve been hoping to go to? Maybe you are dreaming about warmer weather and spring break with friends. What do you want to achieve with your money?
- With a goal in mind, it’s time to track your spending. Tracking all expenditures for a few weeks will give you a good idea of where your money is going. Identify areas where you’re spending too much and where you can dial back your purchases.
- Set SMART (specific, measurable, achievable, relevant, and time-bound) goals around your financial priorities. Goals that are measurable are easier to accomplish. Decided that your priority is to save up some spending money for that study abroad trip you’re taking this summer? Design a budget that will help you achieve this SMART goal.
- Track your progress and regularly review your budget. Is it working? Do you need to adjust? Are you staying within your means?
Setting financial goals as a college student is a low-impact way to practice the real-world skills of budgeting and long-term planning so that, when you get your first full-time job and are beginning your professional life, you'll be better prepared for “adulting.” Your future money success starts today.
