Many students arrive on campus only to discover that managing money is far harder than choosing a major. Between inconsistent income, new expenses, and the independence that comes with college life, financial literacy becomes an essential skill. Knowing how to budget, save and make smart financial decisions can set students up for success not only during school but also long after graduation. At Guilford, these challenges are especially visible, as not all students feel prepared to manage their finances on their own.
Early College student Iris Turfle, who has a strong interest in finance and economics, shared some insight from her experience.
“When I took a personal finance/economics class in freshman year of high school, I really fell in love with it. I’d invested a little before, but it really opened up the world of finance in ways I hadn’t seen before.”
Her experience shows how early exposure to financial concepts can spark lasting interest and confidence.
While high school provides some preparation, many students face new challenges once they start college.
“Yes, I think it prepares students well, but it does take some action from students themselves. When you’re in high school, there isn’t much to manage and few recurring purchases. Income flow is really inconsistent, and it makes it very hard to budget. College opens a lot of those previously closed doors,” Turfle said.
One of the first steps in responding to those new financial responsibilities is creating a clear budget and monitoring spending from the start. Tracking expenses is one of the most important habits students can develop. Turfle uses an Excel spreadsheet to record her money going in and out. Financial experts agree that tracking spending is a key step toward stability.
The Balance advises, “Your first step is to create a budget. Even if your parents are paying for everything, you should still create a budget. It will keep your spending on track and get you into the habit of planning your purchases.”
Turfle believes students need to know when its appropriate to spend, and so do experts. Investopedia recommends students differentiate between “essential and non-essential” purchases and “budget how much you’ll spend on discretionary items or events each month.” Both sources emphasize the importance of knowing where your money is going.
Financial literacy also includes understanding saving, investing and avoiding unnecessary debt. The Balance notes, “Work on saving up an emergency fund. Depending only on credit to get you through an emergency will cost you in interest and fees.” Saving regularly helps students handle unexpected expenses, while budgeting keeps spending in check and reduces stress.
Investopedia also encourages students to adopt strategies that fit their lifestyle: “Adopt a realistic strategy given your schedule. Regularly investing in diversified investment funds can be a simple, time-efficient strategy.” Students don’t need to be experts; even small, consistent investments can grow significantly over time.
Avoiding impulsive financial decisions and focusing on long-term goals can help students build healthy habits early. Yet the availability of financial guidance on campus also plays a role. Guilford offers limited formal financial literacy programming, which may leave some students unsure of where to begin. Expanding workshops or providing dedicated budgeting resources could help reduce financial stress and prevent further financial illiteracy.
Finally, good money management relies on fundamental principles. Tools like budgeting apps, spreadsheets and even simple frameworks such as the 50/30/20 rule– allocating 50% of income to needs, 30% to wants and 20% to savings or debt repayment–help students stay organized and intentional.
By combining early education, practical tracking methods and mindful spending, students can develop the financial literacy necessary to navigate the challenges of college life. Creating a budget, distinguishing between needs and wants, tracking expenses and building savings can prevent debt and promote long-term stability. Experts also recommend starting to invest early, even in small amounts, to take advantage of compound growth.
With guidance, self-discipline and the right tools–whether an Excel spreadsheet, budgeting app or simple rule-of-thumb–students can gain confidence in their financial decisions and set a strong foundation for the future. At Guilford, increasing access to these tools could make financial literacy more attainable for every student.