Every college student preparing to head to class in the fall has a huge amount of things to do and the anxiety to go with them. Part of preparing for college is getting a solid financial foundation by executing some of the basic steps below:
Open Your Own Checking and Savings Accounts
Every young adult needs to get a checking and savings account to manage their money. A checking account makes it easy to get paid as well as sending money when needed. Holding on to large amounts of cash is unsafe and a poor investment.
Pull Your Credit Reports and Your Credit Score
Building and protecting your credit is one of the most important things in your financial journey. Good credit opens up many opportunities and allows you to get a discount on almost every financial transaction in life.
Poor credit has the opposite effect and makes life more expensive and even harder when it comes to finding a place to live or even getting a job. Read our article to learn the difference between FICO and Vantage credit scores.
Take charge of your credit information by pulling your reports from the official government site AnnualCreditReport.com and using services such as WalletHub or Credit Karma.
Get Your First Credit Card
Getting your first credit card is a significant achievement and a necessary step in your financial journey. Start off by becoming an authorized user on a family member’s parent’s card. Another option is getting a student / secured credit card. We recommend getting a card from Discover and using their pre-approval link to maximize your chances of success.
Build An Emergency Fund
Don’t be like most Americans and be one pay check away from being broke and in trouble. Save up an emergency fund before you start school and build it up until you graduate to give you the security that you can handle all the curveballs life will throw at you.
Plan Your Health Insurance
Your health is your most important asset. Without it, nothing else matters. You need to take care of it by ensuring you have proper insurance and coverage for your needs. Check out the health insurance your college offers as well the insurance your parents probably already have. Determine which offers you the best coverage for your money and make sure you take full advantage of all the preventative and maintenance care to give you the best chances of remaining healthy throughout your life!
Getting these basic things done before heading to class will set you apart from the rest of the students and build a solid foundation to start your financial career on your path to FIRE.
Watch this Before College
Watch the video below to get even more information on these five things you must do before you start college!