Students returning to college can build habits that set them up for financial success
As hundreds of thousands of college students prepare to return to campuses throughout Ohio this month for the beginning of the 2025-26 academic year, the Ohio Department of Commerce Division of Financial Institutions is highlighting the importance of focusing on financial responsibility just as much as academic achievement.
With approximately 85% of college students owning at least one credit card and carrying an average balance of $2,100, managing personal finances effectively is a critical step toward ensuring students successfully navigate their newfound independence – and they don’t set themselves up for major financial headaches down the road.
“Heading back to campus is an exciting time, but it’s also an opportunity to develop financial skills that will serve students well into adulthood,” Division Superintendent Kevin Allard said. “Taking steps like creating a budget, using credit wisely, and saving for unexpected costs not only can help avoid significant financial challenges, it can also set young adults on a path toward financial success that will pay dividends for many years to come.”
To get started, the Division recommends students follow these essential tips:
• Overestimate Expenses, Underestimate Income: Make sure you account for unexpected costs by budgeting conservatively. In other words, don’t look at your budget through rose-colored lenses. This will help to ensure you avoid financial shortfalls.
• Build an Emergency Fund: No one can predict the future, so setting savings goals that include an emergency fund can help prepare students financially for unforeseen – and costly – circumstances.
• Distinguish Needs vs. Wants: Complete an honest assessment to understand financial priorities to help curb unnecessary spending. Focus on needs over wants.
• Track and Adjust Budgets Regularly: Review spending habits on a regular and consistent basis to ensure your budget remains aligned with current financial realities.
• Use Credit Cards Cautiously: Make sure to only spend what you can realistically afford to pay off monthly to help you avoid long-term debt and maintain a solid credit score.
The Ohio Department of Commerce also highlighted this topic during a recent episode of its “Protecting What Matters” podcast.
Budgeting is especially important for students who are anticipating significant milestones, such as moving off-campus, starting internships or preparing for post-graduation job searches. These scenarios often come with hidden or one-time expenses, making proactive financial planning an important step in this process.
Additionally, students should monitor their credit history and consider using free credit monitoring tools like CreditWise® or Experian to stay on top of their financial standing. This is important because a good credit score offers long-term benefits such as better terms on loans and credit products, which can save thousands over time, including many years after graduation.