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Managing Your Finances During College

Managing Your Finances During College

September 4, 2025

By Charlestien Harris, Retired Financial Counselor at Southern Bancorp

Managing your finances during college can be a significant source of stress. For many students, this is the first time they’ve had to take personal responsibility for their financial decisions. Just know – you’re not alone! There are clear answers to the questions you may have as a college student trying to be smart about money.

Let’s explore some common questions and practical advice to help you build financial habits that can last a lifetime.

1. Where Do I Start?

The foundation of any effective financial plan during college begins with a well-structured budget. Here’s how to create one:

  • List all income sources: Include part-time jobs, scholarships, grants, and allowances.
  • Categorize expenses: Divide them into fixed (e.g., rent) and variable (e.g., food, entertainment) costs.
  • Use budgeting apps: Track spending with tools like Mint or You Need a Budget (YNAB). These are examples, not endorsements. If you’re not tech-savvy, the old-fashioned tally method works too.
  • Review regularly: Adjust your budget as needed.

2. How Can I Cut Costs Without Feeling Deprived?

Students often look for ways to reduce spending on non-essential items like dining out and shopping. Try these strategies:

  • Use student discounts.
  • Cook meals at home.
  • Attend free campus events.
  • Plan purchases in advance.
  • Avoid unscheduled events, which can quickly derail your budget.

3. Is a Part-Time Job or Side Hustle Worth It?

Many students work to supplement financial aid, cover expenses, and gain job experience. A part-time job can increase your income and give you more flexibility in your budget. However, be careful not to let work interfere with your studies. Learning to manage both time and money is a skill that will serve you well beyond college.

4. What Should I Know About Student Loans Before Taking Them Out?

It’s important to understand the difference between federal and private loans, and how interest accrues – even while you’re in school. Know how much money you’ll need before starting college. Estimating your expenses in advance can help you decide whether taking on student loan debt is necessary. Do your research, and exhaust all “free” options first, such as grants, work-study programs, or scholarships.

5. How Do I Open a Checking Account?

According to a CNBC report, 85 percent of undergraduates have a checking account, leaving about 15% without one. Arriving on campus without an account can make it harder to manage purchases and stick to a budget. Visit a local bank and speak with a customer service representative or new account manager to begin the process. Required documentation may vary by institution.

6. What Is a Credit or Debit Card, and How Do They Work?

Surprisingly, 32 percent of teens don’t know the difference between a debit card and a credit card. Here’s a quick breakdown:

  • Debit cards: Use your own money directly from your checking account.
  • Credit cards: Allow you to borrow money from the card issuer to pay later.

Key differences include:

  • Debit cards don’t charge interest, don’t build credit, and offer limited fraud protection.
  • Credit cards may charge interest, help build credit, and offer stronger fraud protection.

It’s normal to struggle with financial concepts at first. Before heading off to college, make sure you and your parents are aligned on financial expectations. If not, there are many credible organizations that offer reliable financial education materials to guide you.

For more information on this and other financial topics, feel free to email me at charlestienharris77@gmail.com or write to P.O. Box 1825, Clarksdale, MS 38614.

Until next week – stay financially fit!