A Sun Devil’s guide to managing money

Money can feel stressful in college, especially if this is your first time managing it on your own. Between food, textbooks, going out and random last-minute expenses, it is easy to feel like your money disappears fast. The good news is you do not need to have everything figured out right away.

Certified financial coaches at Desert Financial Credit Union, ASU’s official retail banking partner, answered five common banking and budgeting questions college students often have.

1. How can I save money on food, entertainment, clothes and textbooks?

Start by planning ahead and using student discounts whenever you can. A lot of college saving is less about cutting everything out and more about avoiding paying full price when you do not need to.

For food, meal prepping, bringing lunch, using digital coupons, shopping sales and making coffee at home can all make a difference. For entertainment, look for student subscription plans and free on-campus events. For clothes, try thrift stores, promo codes and sale sections before buying new. And for textbooks, renting or buying used is cheaper than buying new.

Another helpful habit is saving a small percentage of every paycheck if you have a job. Try setting aside 10% of each paycheck. 

2. What is the best way to start a budget if I have no idea what I am doing?

Start simple. The best budget is the one you will actually use.

First, figure out why you want a budget. Maybe you are trying to stop overspending, save for something important or make your money last longer each month. Then choose a system that works for you, whether that is a budgeting app, a spreadsheet, paper or even the notes app on your phone.

The goal is not to make it perfect. The goal is to understand what is coming in, what is going out and what you want your money to do each month. Once you can see your income and expenses clearly, it becomes easier to make a plan and adjust as needed.

If you feel stuck, meeting with a financial coach can help you walk through the process and find tools that work for you.

3. How do I save for emergencies when money is already tight?

Start small and stay consistent.

An emergency can look different for everyone, but usually it is something you need, not just something you want. For example, if your phone breaks and completely stops working, that may be an emergency. The important thing is to have at least a little money set aside for the unexpected.

A common budgeting method is the 50/30/20 rule, where 20% of your money goes into savings. But if that does not work for your budget right now, that is OK. You can start with a smaller amount and build from there.

Even saving $10 per paycheck can make a difference. If you save $10 from each paycheck every other week, you could have $520 saved in one year. Weekly or biweekly savings can also feel more realistic than trying to set aside one big amount each month.

4. How do I build credit without going into debt?

Building credit does not mean you have to carry debt.

A good place to start is understanding how credit works. To build credit, you typically need a credit-qualifying account, such as a credit card. But that does not mean you need to spend beyond your budget.

If you use a credit card, keep purchases small and manageable. Try to pay off the full balance each month so you are not carrying debt or paying interest. Responsible, on-time payments can help you build credit history without creating long-term debt.

The key is to treat credit like a tool, not extra money.

5. What is the difference between a checking account and a savings account?

A checking account is for everyday money. It is what you use for things like food, bills, subscriptions and debit card purchases.

A savings account is for money you do not want to spend right away. It is a good place to keep money for future goals, unexpected expenses, a trip, moving after graduation or anything else you want to set aside for later. Savings accounts also usually earn interest, which means your money can grow a little over time.

Final thought

You do not need to become a budgeting expert overnight. Start with one thing this week: track your spending, move a little money into savings or look at where your paycheck is going.

Small habits count. And the sooner you start paying attention to your money, the easier it gets to make it work for you. Learn more about Desert Financial Credit Union at ASU.