College often means living on a tight budget. Financial literacy can help students manage their financial resources.
By Brenda Walton
Since 2004, April has been known as Financial Literacy Month, with a focus on financial education. Learning how to manage money for college students and families on a strict budget is a lifelong commitment. Here are a few stats about how some of us handle money: A quarter to 35 percent of U.S. households live paycheck to paycheck, spending a high proportion of income on necessities, while less than half can cover a $1,000 emergency expense. About 80 percent of Americans carry some form of debt, excluding mortgages.
In light of the statistics, it is important for students and those of us that work in the educational space to embrace financial literacy. If you are like me, you are thinking, “What is financial literacy?” It means that you understand how money works, which allows you to make smart decisions related to finances.
Now I am thinking, we all would love to make better and smarter decisions regarding money, so how?
There are a few tips you can use:
- Budget, Budget, Budget – You need a plan to keep track of money that comes in and goes out each month. You do not have to track every dollar but should know how you earn, save and how much you spend on rent, utilities, food, gas and entertainment. There are plenty of online resources to help students with budgeting and how to get started. (You had to know that this was going to make the list!)
- Avoid the Plastic – The question you need to ask yourself is, “Do I spend now and pay later?” Try with all of your might to avoid charging your expenses. In the end, it will cost you more. Think of the finance charges and interest!
- Spur of the Moment – Resist the initial urge to impulse buy. This will lead to unnecessary spending that was not in the budget, and you have boomeranged back into debt.
- Conquering Your Debt – It might seem like you have Himalayan-size debt. Try paying off the little debts first. Conquering the smaller debts will give you the confidence to scale the larger ones.
- What’s the Score? – You will need to keep an eye on your credit score. Your credit score is like a grade given to your credit report. Every year you can request a free credit report to ensure you are aware of all the credit in your name. The annual credit report will not contain your credit score, which will typically cost you, but will let you know what is on the reports. However, more banks are offering free access to credit scores. Check with your financial institution to see if this service is available.
Financial literacy is important because it allows you to work toward your future and provides the knowledge and skill to manage your finances.
Brenda Walton a Global Client Services Director. Her blog on Financial Literacy Month was first posted on March 27, 2019.
Resources:
https://consumer.gov/
https://consumer.ftc.gov/consumer-alerts/2025/04/protect-yourself-and-your-money-scammers-financial-literacy-month
https://www.nerdwallet.com/l/free-credit-score
https://www.councilforeconed.org/financial-literacy-month/
April 14, 2025