Starting college is exciting, but having to worry about finances is not, that’s why Northeast Bank is here to help you make smart financial moves that set you up for success both now and after graduation.

1. Start an Emergency Fund

Imagine, you are working on an important paper and suddenly your laptop breaks, but you need cash to fix it quickly before the paper is due! That’s why it is important to have an emergency fund, a bit of money you’ll only touch when situations like this happen. By setting aside a little money from each paycheck, you'll build a safety net—so you can focus on school instead of unexpected repairs.

An important rule to help you prepare for situations like this is the 50/30/20 Rule. This means 50% of your income should go towards needs such as rent or groceries, 30% of your income should be delegated to wants such as clothing or take out, and 20% of your income should go to savings such as your emergency fund!

Helpful Tip: Depending on your short-term or long-term financial goals, you can structure your budget differently. For example, 50% of your income can go to needs, 15% to wants, 20% to savings, and 15% to a big purchase you have planned. It’s okay to set aside money for your wants, but it is important to not spend more money on your wants than your needs.

2. Track Your Spending 

Tracking your spending can be done in 3 easy steps! 

Step One: Categorize Your Expenses – Make a log to see your expenses such as food or housing.

Step Two: Set Goals – Decide how much you want or need to spend in each category and remember the 50/30/20 rule.

Step Three: Calculate Your Spending – Add up all your expenses and subtract it from your income, ideally it should equal zero meaning every dollar is accounted for.

Zero-based budgeting is a helpful method for planning your finances. It means assigning every dollar of your income to specific expenses, so your income minus expenses equals zero. By assigning every dollar to a place, it reduces the chances of overspending. If you are worried about messing up your budget due to unplanned purchases such as that new top you saw at the mall then you can add a “Miscellaneous” category to your expenses to account for unexpected purchases!

3. Financial Clean-Up

Too often we waste money, and we don’t even know it! It is important to review bank statements for financial waste, which is unnecessarily spending money on expenses that don’t contribute value or go unused. Taking a closer look at your bank statement can show you that you need to cancel those unused streaming subscriptions you forgot you were paying for or how that daily coffee trip before class is starting to get expensive.

You should also distinguish between your wants vs. needs, wants aren’t necessary for survival, while needs are essential.  A need can also turn into a want if you are spending your money inefficiently to obtain it. For example, food is a necessity, but going out to that fancy restaurant for dinner is a want. Making a conscious effort to swap eating out for meal prepping can help you to save money, especially in the long run. 

Bonus: Check for Student Discounts

Many retailers give out student discounts to attract new customers and build brand loyalty. Your favorite brands could be giving out discounts and you didn’t even know about it! There are many online resources that help you to find student discounts or promo codes. Next time you go to click “buy” on that online order, take a closer look at their website to see if you can save money!

With Northeast Bank by your side, navigating college finances doesn’t have to be overwhelming – just smart, simple, and tailored to help you thrive every step of the way.