8 Smart Money Moves to Make the Most of Your College Years

College can feel like an expensive time of life. But making the right money moves now can help set yourself up for long-term success even beyond graduation. One of the first things to do is to make sure you understand your student loans, particularly how interest accrual and payments work. Also start learning how to budget and try to set a little extra savings aside as a beginning emergency fund. Getting a side hustle can help boost your spending power while in college, as can a credit card– as long as you know how to manage it responsibly.

Three college students discuss smart money moves for their financial future.

Many young people are first exposed to managing their finances during college. College is often as much about learning how to function independently in the world as it is about academic learning.

The cost of tuition is high and rises every year. Still, housing, books, and living expenses add up. According to the College Board, these costs can be as high as $39,030 per year in addition to tuition and fees.

To avoid financial regrets after graduation, here are eight moves that you can make to manage your money and expenses.

1. Understand your student loans

42.6 million people have taken out federal student loan debt to help pay for college. Even though that accounts for over 90% of all student loans, it’s still important to figure out what type of loans you have and what that means for repayment while you’re still enrolled in school.

Check your specific loan terms to see if payments are required during school and what kind of enrollment and grades you must maintain to stay qualified. However, this list is a good starting point of what to expect based on the type of student loan (or loans) you have.

Feature	Federal Subsidized Student Loans	Federal Unsubsidized Student Loans	Private Student Loans
Interest Rate	Fixed	Fixed	May have variable rate; depends on loan terms
Interest Accrual While In School	Federal government pays interest white you’re actively enrolled	Interest accrues during entire loan term	Interest accrued during entire loan term
Minimum Enrollment	At least half-time	At least half-time	Varies by lender
Payments Required While Enrolled	Not required	Not required	Depends on loan terms
Grace Period After Leaving School	Six months	Six months	Depends on loan terms

2. Set a budget (and stick to it)

Creating and adhering to a budget is a good practice to start early and maintain throughout your life. It’s especially important in college when making ends meet is often a struggle. Let’s face it: Running out of money is about as fun as an 8 a.m. class on Friday.

You don’t need to start with huge savings goals while you’re still enrolled. Start small and focus on creating a buffer fund to cover common emergencies like an unexpected car repair or a last-minute trip home.

A budget doesn’t have to be complicated or take a long time to accomplish. You have various options to manage your budget, such as using a mobile app, spreadsheets, web-based budget calculators, or simply pen and paper. The important thing is finding a system that works for you and sticking with it.

3. Open a savings account

Start building your savings by opening an account with no fees or a low minimum balance, such as a high-yield savings account where you can deposit money every time you get paid. A high-yield savings account typically comes with a better APY than a traditional savings account, earning you more as you grow your balance.

Look for an account without monthly service fees or a high opening balance. Also make sure to allocate a portion of your budget towards savings to avoid running out of money during critical times like finals week.

4. Get a side hustle

Finding time for a part-time job can be tricky, but gig work can give you the flexibility to work around your classes and other obligations.

Companies like Lyft, Uber, Instacart and other specialized gig platforms are often perfect for busy college students. Many students do freelance work or tutoring. Some students even make commissions for art or sell things on Etsy. Also consider looking for part-time jobs on campus. Many schools have student job portals that can help land you a role in places like the library, student center, or dining hall.

No matter what kind of work you do in college, you must file a federal tax return if you earn more than the federal limits. For single tax filers, that limit is the standard deduction ($16,100 for 2026). Any self-employment income of $400 or more (including gig work and anything else where you work as an independent contractor) must also be reported and taxed. If your parents claim you as a dependent, you’ll file as part of their tax return.

5. Be smart with credit

Building a positive credit history in college can help open doors for future credit-related purchases like buying a car or home. There are several options available to help you get started, each with their own set of benefits and drawbacks.

Type of Credit Card	Overview	Pros	Cons
College Credit Card	Usually have low credit limits and carry high interest rates compared to other cards.	Easier eligibility requirements Helps build credit	Potential for overspending Credit score could drop with late payments High interest rates
Secured Credit Card	Pay a deposit, and your credit limit is generally equal to the amount of that deposit.	Easy approval Helps build credit	Need upfront cash to qualify Missed payments still hurt credit score
Authorized User	If you have a parent or older sibling with good credit, you can ask them to add you as an authorized user on their card.	Builds credit quickly Potentially have access to credit	Can negatively impact your credit if they miss payments Could lead to family conflict if there are disagreements

If you decide to open a credit card, only spend what you can pay back and pay the balance in full and on time every month. If you do need to carry a balance, keep your credit utilization ratio low.

Credit utilization refers to the amount of your credit line you’ve borrowed. A high credit utilization can hurt your credit score.

Also remember to make your payments on time. Payments that are 30 days late can cause your credit score to drop and stay on your credit report for seven years.

Emergencies and unforeseen expenses happen, so if you accumulate credit card debt, don’t panic!

There are ways to manage your debt, including possibly paying it off with a debt consolidation loan.

6. Pay bills on time

College can be a blur, but keeping track of bill due dates is important. Heading off to school is when most students begin paying their own bills and start establishing their credit.

Whatever bills you may have, making timely payments is critical since negative marks on your credit report have serious consequences long after graduation. Derogatory marks like missed payments, charged-offs, and collections can negatively impact your credit report for up to 7 years. You also incur additional derogatory remarks on your credit report for every additional 30 days your credit card bill remains unpaid so get your accounts up-to-date as quickly as possible. Remember, good financial grades (credit scores) will be as important as your GPA after graduation.

Setting up auto-payments or monthly reminders can help you keep track of bills. But don’t just set it and forget it. So many services now require monthly subscriptions that come with autopay, it can be easy to forget everything you’ve signed up for. Set a reminder to audit your monthly subscriptions regularly so you don’t end up paying for things you’re not using.

7. Be thrifty with expenses

Besides tuition, additional college costs such as books, food, housing and other expenses can really add up. The Education Data Initiative estimates that an average college student spends more than $1,220 annually on books and supplies alone.

You can’t avoid expenses like books, but you can still look for ways to save. For example, renting textbooks can be a great way to save money. Also, learning to cook can help stretch your dollars, as take-out or eating out can be expensive.

8. Barter, trade, share and get student discounts

Being thrifty is admirable, but knowing how to meet your needs and wants without overspending is important. Explore student discounts and deals available for college students. You can find savings on electronics, restaurants, software, and more. Avoid making extra purchases just to take advantage of the deals; instead, look for those savings opportunities once you decide to make a purchase.

Also hit up social media and communications apps before buying something new. These platforms often include freecycle or buy/sell/trade groups where you can obtain products or services free, through barter, or at discounted prices. Alternatively, you may be able to directly barter with other students on campus.

Good financial decisions now set you up for future success

Navigating finances as a college student can be a challenging and overwhelming experience. Between balancing tuition fees, textbooks, and living expenses, it’s no surprise that many students struggle to establish a solid financial foundation.

However, the good news is that by being mindful and avoiding common financial pitfalls, you can set yourself up for financial success both during and after college.

Prosper does not provide tax, financial or legal advice and this post is not intended to be tax, financial or legal advice. We recommend that you consult with your financial or tax advisor if you have any questions.

Written by Lauren Ward

Lauren Ward is a personal finance writer who is passionate about helping people simplify their financial decisions. Her work has been featured in outlets such as USA Today Blueprint, CNN Underscored, and many more. She lives in Virginia with her husband and three children.

*All personal loans made by WebBank.