The College Student's Guide to Financial Well-Being

The College Student’s Guide to Financial Well-Being

Smart Tips and Tools for Success

College is one of the most rewarding, life-changing experiences you’ll ever have.

Not only will you expand your horizons and your knowledge, but you’ll be taking a giant leap forward toward greater independence.

At UW Credit Union, we’re here to help you prepare for the exciting journey ahead, especially when it comes to your financial well-being.

Think of us as your “financial adulting” coach.

This guide will help give you the insights you need for financial success in college and beyond.

You’ve got this!

3 Planning Like a Pro

Creating a spending plan is an important first step toward mastering your financial situation. And the best part is that it’s pretty simple, if you follow these basic steps. • List your monthly income sources and savings, as well as allowances from your parents or guardians. • Next, determine and track your expenses. This includes books, school supplies, food, rent and utilities (if you’re not in campus housing), transportation, and fun/recreational expenses. • Balance your income and expenses. Be sure to set aside funds for savings, too. • Start an emergency fund that’s separate from your daily debit account. By setting up monthly automatic fund transfers into your emergency account, you’ll have a safety net that can help if the unexpected happens.

Smart Tip: UWCU Web Branch offers cool, convenient Money Management Tools, with features like Categories, Notes and Labels, Transaction-based Notifications and more!

At the end of the day, your college spending plan is all about striking a healthy balance between your wants and your needs.

You’ll stand out from your peers by budgeting. Why? A whopping 43% of college students don’t track their purchases.

Source: Affordable Colleges Online 4 Getting an Account That’s a Good Fit

One of the first big money decisions you’ll make in college is choosing an account that’s just right for you. Doing a little homework first will help you in the long run. Look for accounts with minimal maintenance and overdraft fees, free checking, convenient ATMs with no out-of-network charges, and a good mix of in-person and online banking options. At UW Credit Union, our personal checking/debit accounts are packed with perks, including some that other financial institutions don’t offer! • No monthly fees with qualifying services • No minimum balance • Free debit cards • Surcharge-free ATMS • 24/7 access via Web Branch, our online banking destination • Super smart Mobile App • Zelle®, a fast, safe and easy way to send money • Account and card security • Free credit score • Free online bill pay You can choose from a variety of personal checking/debit packages designed for your unique needs. Visit uwcu.org/checking/personal-accounts

Smart Tip: The UW Credit Union Campus Package helps students meet minimum requirements and avoid monthly fees.

Becoming a UW Credit Union member is easy. Visit uwcu.org/about-us/membership-eligibility

UW Credit Union saves its members over $10.5 million a year in overdraft fees.

Source: Raddon Financial Group

5 Developing Smart Money Habits

Want to live comfortably while keeping your finances under control? Check out these savvy money strategies. Save on Books According to Chegg, a major textbook rental company, you can save up to 90 percent by renting versus buying. Just make sure you avoid those late fees and damage penalties! Used books can help you save, too. Be a Frugal Foodie Try stretching your meal plan by cooking at home every once in awhile. Getting snacks and beverages at local supermarkets also helps. And, do you really need to buy a latte every other day? Wait a Week It’s fun to treat yourself to trendy shoes and clothes, but these purchases can add up. Prevent impulse buys by waiting a week. If you’ve forgotten about those jeans after a few days, they probably weren’t worth it. Take Advantage of Student Discounts Your student ID can open doors to all kinds of discounts at local businesses, online retailers, fast-food chains, electronics manufacturers and more.

Smart Tip: Find out if businesses offer college student discounts by calling ahead first, or by checking out their website.

The average college student spends more than $1,200 per year on books and materials for classes.

Source: College Board 6 Explore Your Income Options

College can be costly. That’s why it can pay (pun intended) to creatively find a nice mix of income sources to help offset the shorter- and longer-term costs of college. Here are some thought starters. Apply for Scholarships If you haven’t already done so, consider exploring scholarship opportunities. From the bigger, more competitive full-ride variety, to the smaller types that can help cover books, materials and other costs, scholarships can help you get ahead.

Smart Tip: Each academic year, UW Credit Union offers five $3,000 Community Values Scholarships to new and returning undergraduate students. Visit uwcu.org/about-us/community-values-scholarship

Check Out On-Campus Work Opportunities Universities and colleges offer a lot of different part-time jobs. It’s a great way to lower your college costs and get extra work experience while you’re in school. Side Hustles Can Help Setting up a side job to fit your schedule can help make college more affordable. Tutoring, dog walking, delivering food, house cleaning or doing yard work… the possibilities are seemingly endless.

The average student receives $1,000 to $5,000 in scholarships.

Source: Investopedia

7 Be Credit Card Savvy

Sure, credit cards make it more convenient to buy stuff while you’re in college. Additionally, getting a credit card is an important first step toward building credit, which can pave the way toward your future goals. These tips can help you find a card that’s right for your needs. Check Out Fees and Rates Carefully compare the rates and fees of different cards. Consider those with no annual fee, a low interest rate and a reasonable credit limit.

Smart Tip: UW Credit Union offers budget-friendly products and services. Explore the details at uwcu.org/credit-cards/compare-cards

Pay Your Balance in Full Every Month Make a habit of paying off your balance on time when you get credit card bills. That way, you can avoid debt and the extra fees associated with not paying in full. Only Charge What You Can Afford The healthiest way to use a credit card is for purchases within your means, which you can easily pay off at the end of the month. Avoid those big-ticket purchases. If you buy things you can’t afford with your credit card, you’ll risk taking on too much debt.

Smart Tip: Consider setting up automatic payments for monthly costs, like phone bills or streaming subscriptions.

Over half of college students with credit cards pay off their balance each month.

Source: FinancialWeb

8 Building Healthy Credit

Why is building good credit while you’re in college so important? Your 30-year-old self will thank your college-age self for making healthy credit decisions. Know Your Credit Score Your credit score is a snapshot of your creditworthiness, based on how you’ve managed credit cards, loans and other financial obligations. It’s important to check your score and track its progress over time.

Smart Tip: As a UW Credit Union member, you can check your credit score for free in Web Branch anytime.

Improve Your Credit Score Higher credit scores can lead to lower rates on credit cards and loans, easier approvals for renting apartments, or landing a nice job. These savvy habits can help your credit score: • Pay bills on time (credit cards, rent, utility bills, etc.) • Pay off your balance in full each month, as previously noted • If you have to carry a credit card balance, keep it about 30% below your credit limit • Stay on top of loan payments; set up automatic payments when possible Don’t Hurt Your Credit Score Do yourself and your future a favor by avoiding these credit score missteps: • Missing payments, or making late payments • Having a high balance; the closer you are to your credit limits, the greater the negative impact • Too much new credit (rapidly opening new accounts) • Limited or no credit experience

The average credit score for college-aged UW Credit Union members is 705, well above the national average.

Source: UW Credit Union 9 How to Avoid Common Scams

You’ve probably heard about scams targeting university students like you. These tips can give you the knowledge and confidence to protect yourself. Fake Check Scams The most common check scams begin with one of these situations: • You sold an item online and the buyer overpays. • Surprise! You “won” a prize for a contest you didn’t enter. • You’re overpaid as a “secret shopper.” • You’re hired to do small jobs like dog walking and are paid too much. In cases like these, the person who sent you a check will ask you to send back money or buy gift cards to cover the amount you were overpaid, or to cover extra “fees.” After that, you find out the check you received is not real. As a result, you lose money. Government-Themed Scams In most cases, you’re contacted by someone claiming to be from a tax or law enforcement agency. They warn that you’ll be punished for not paying fees or fines, and tell you to transfer money elsewhere. In these scenarios, you’re tricked into giving away money. Sublet Scams If you’re subletting your apartment, you might be contacted by an “interested renter” who sends you a check for more than the amount of the security deposit and the first rent payment. Then they’ll ask you to send the extra “overpayment” money back to them. This is a scam, because the check they sent you is not real. Common “Warning Signs” You can outsmart scammers by watching out for the following: • Someone overpaying when they send you a check • Individuals asking you to act immediately or keep their request for money “secret” • Phone calls, text messages or emails requesting personal information, or to click a link

Smart Tip: Take these steps to defend yourself against these and other scams: • Stop and ask questions • Don’t send funds • Never provide your online banking user ID or password, or your debit card PIN • Seek financial advice/support from someone you trust

10 Planning for Student Loan Payments

Even though student loan payments typically aren’t due until six months after you finish college, you’ll be thanking yourself in the long run if you start while you’re still in school. These strategies can help. Create a Game Plan Get familiar with your loan terms, and how long it will take to pay off your student loans. If you’ve already created a spending plan for managing your money, include a line item for student loan payments. Make Interest Payments Right Away Interest accrues on most student loans. When you make payments on the interest you’ve accrued while you’re in school, you can save money over the life of your loan.

Smart Tip: Most lenders, including UW Credit Union, offer a0.25% interest rate reduction when you set up automatic payments for student loan repayments.1

Be Strategic In case you have more than one student loan, determine which one has the higher interest rate, and focus on paying it down first. Or, pay down the one with the highest balance first. The choice is yours! Return Funds If it turns out that your student loan includes funds you don’t need, contact your bursar’s office to find out how you can return the funds. This could help you save money on repayments.

1For more details, visit uwcu.org/loans/student-loans

31.6% of bachelor’s degree students pay off their loans 12 years after starting college.

Source: National Center for Education Statistics 11 Let Us Help You Succeed

UW Credit Union serves the financial needs of hundreds of thousands of members through best-in-class technology systems, dozens of branch locations and over 100 ATMs across the state. As a member-owned, not-for-profit financial cooperative, we’ve been guided by a simple but powerful mission—putting our members’ best interests first. We’ve been empowering our members, including university students, ever since we were founded at UW–Madison in 1931. At UW Credit Union, we’re here to help you improve your life financially, from your first day of classes, to your very first job after graduation and beyond. We also have a long history of giving back to the communities we serve, through efforts that support financial wellness and quality of life. Plus, we’ve got a solid track record of investing in environmentally friendly practices. If you’re not already a member, we encourage you to become one by signing up online, or by visiting us in person at one of our branches. We’ll support you every step of the way on your financial journey.

uwcu.org | 800-533-6773

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This information is for educational purposes only. It should not be considered legal or financial advice.

Federally Insured by NCUA