For many students, college isn’t only a time of learning and forging lasting friendships. Your college years may also mark the first time you’re responsible for your own finances. As you navigate this exciting new chapter of life, learning how to manage your money wisely can set you up for success long after graduation.

You can start building your toolkit while you’re in college, and when you’re ready, you can find a financial advisor to provide a bit more guidance for the long term. Let’s explore practical ways to manage your money and make the most out of your college experience without breaking the bank.

Set savings goals

The financial decisions you make in college can lay a strong foundation for your future. To create your savings goals, consider what you’d like to achieve in the short, medium, and long term. For example, you may want to save up for a spring break trip with your friends in a few months, the deposit on an apartment next year, and the down payment on a home in ten years. Each of these goals can help shape your budget.

Create a budget that works for you

Managing your money responsibly doesn’t have to mean skipping nights out or living off ramen. Instead, create a budget that makes sense for your life and stick to it. Start by tracking all your monthly income and spending. Create a line item for each expense, including necessities like rent and non-essentials like streaming services, and consider how much to spend in each category. Be sure to include savings so you can pursue your financial goals.

One popular budgeting technique for college students is the 50/30/20 rule, which says that 50% of your income should go toward needs, 30% toward wants, and 20% toward savings. Adjust your budget based on your changing financial circumstances, but otherwise, try to stick to it.

Build credit history

Your credit may influence the apartments, car loans, and even mortgages you qualify for in the future, so it’s important to begin building your credit history. If you’re at least 18, you may qualify for a student credit card if you can prove sufficient income. Otherwise, you can get a co-signer or wait until you’re 21 to get a card.

These cards typically have lower credit limits and include features to help students manage their finances. You could also consider becoming an authorized user on a family member’s card. To build credit, use the card for small, regular purchases and repay your balance in full each month. Be cautious about shopping sprees with your credit card, as missed payments or high balances could damage your score.

Use your student loan refund wisely

If your student loan disbursement exceeds the cost of tuition for the semester, your school may issue you a refund. It might be tempting to splurge when that lump sum hits your account. But remember, that’s not free money; it’s money you’ve borrowed that you’ll have to pay back with interest. Prioritize using it for essential expenses like tuition, books, and housing. If there’s money left over, consider setting it aside in a savings account to put toward student loan repayments later on.

Establish a debt repayment plan

If you have student loans, start thinking about how you’ll repay them even before you graduate. Understand the terms of your loans, including interest rates and repayment options. Consider making small payments while still in school, if possible. This can reduce the overall amount of interest you’ll pay. Planning ahead could make the transition to post-college life smoother and less stressful.

The money decisions you make in college pave the way for your financial future. Taking charge of your money today prepares you to navigate tomorrow with confidence.