Heading to college? Experts share key tips on budgeting, credit and student loans

New York: Starting college is an exciting milestone, but it also brings new financial responsibilities that can shape a student's long-term financial future. Financial experts say college is an ideal time to begin building good money habits, establish credit, learn budgeting skills and understand the implications of borrowing. "You have to consider the financial decisions you make in college because they impact what your financial security is going to be once you enter your first job," said Sara Wilson, Director of Product Innovation at Student Connections. Start building credit early Experts recommend that students begin building a credit history as early as possible. Courtney Alev, Consumer Financial Advocate at Credit Karma, said establishing a credit record during college can help students qualify for future financial products such as mortgages, car loans and rental housing. Options for beginners include: Secured credit cards Student credit cards Becoming an authorised user on a parent's card Alev advises students to charge only what they can afford to repay in full each month to avoid accumulating debt. Create and follow a budget Students often rely on multiple income sources, including part-time jobs, family support and financial aid, making budgeting essential. Experts recommend using budgeting apps, spreadsheets or simple written plans to track income and expenses. "Budgeting is simply creating a plan to get what you want with your money," Wilson said. Financial therapist Lindsay Bryan-Podvin suggests dividing monthly bills by four to determine how much should be set aside each week. For example, a student paying AED equivalent of $1,000 in monthly rent should aim to save $250 each week toward that expense. Build an emergency fund While investing may seem appealing, advisers recommend creating an emergency fund first. Alev said students should aim to build savings that can cover several months of essential expenses before focusing on investments. The emergency fund can help cover unexpected costs such as medical expenses, travel emergencies or temporary income loss. Be honest about spending Experts also encourage students to be transparent about financial limitations when socialising with friends. Bryan-Podvin noted that students should feel comfortable declining activities that exceed their budgets and focus spending on priorities that matter most to them. Being clear about financial boundaries can help prevent overspending and unnecessary debt. Understand student loans Students are also encouraged to monitor how much they borrow and understand the long-term cost of their loans. Wilson said it is important to know: Total borrowing amounts Expected repayment obligations Estimated monthly payments after graduation A clear understanding of student debt allows students to make informed decisions and avoid future financial stress. Use campus resources Many colleges provide free financial support services through student affairs offices, libraries and financial aid departments. Phil Schuman, Executive Director of the Higher Education Financial Wellness Alliance, said students should take advantage of these resources. "The nice thing about the system that you have on your campus is the people aren't going to judge you," Schuman said. Learn from mistakes Experts emphasised that financial mistakes are part of the learning process and should not discourage students from improving their financial habits. "Mistakes will happen," Schuman said. "Give yourself grace. Nobody is perfect when it comes to their finances." Financial advisers say developing sound money management skills during college can lay the foundation for greater financial security and independence after graduation.