by Chelsea Springli 
Even after the craziness of applying to college, earning an acceptance letter and selecting a school, incoming freshmen still have some college preparations to do. Financially preparing for college is an essential step to surviving your first year at school, and the few more afterward. Here are some ways you can financially prepare for college.
Get Your Own Accounts
If you haven’t already, you will need your own checking and savings accounts, which you can do at age 18. Alltru Credit Union offers a free Basic Checking Account that will make it easy for you to be able to manage your own money while at school. With your account, you’ll get a debit card to make it easy to purchase essential items without carrying cash. A High-Yield Online Savings account allows you to save money faster than a normal savings account too.
Stockpile Some Money
As you prepare to head off to college, you will quickly find out how expensive it is to live on your own. Everything from your meals to your everyday essentials are now on you! Take the summer between high school and college to start saving. Alltru’s High Yield Online Savings account works best for this. Even if you work during college, your expenses may outweigh your income. Saving money while you can before your expenses increase will give you some cushion for when you aren’t making as much money later. Once you’re in the thick of college, increase your work hours during the summers when you aren’t taking classes. That way, you can rebuild your savings.
Evaluate Your Savings
Certain types of education savings accounts must have the funds withdrawn before a certain age. With a Coverdell Education IRA, the funds must be withdrawn by when you are 30 years old. However, the balance in this account grows interest. The longer money sits in the account, the longer it has to grow interest. Review the account’s growth and use a savings calculator to determine approximately how much money will be in the account when you may need to withdraw some. You can also calculate how much more money may be in the account by waiting to withdraw. See how much more the account will have if you wait another semester. This will help you determine the best method for paying for your tuition and other expenses.
Learn How to Budget
You have your own accounts. You have some money stashed away. Now it’s time to learn how to budget your money so that it lasts! Expenses quickly add up and you’ll need to be sure you have enough for both your everyday needs and any emergencies that might pop up while you’re at school. You might even consider opening a credit card to not only assist with your expenses, but also build your credit. Plus, you should try to build in savings to your budget to get ahead financially for your next semester. Learn how to create a budget.
Consider Borrowing Less
A financial aid award letter will offer a certain amount in loans. However, be cautious on how much money you take out in assistance. Some students take the full amount and find themselves paying it back for a very long time. Student loans are no joke and should be taken seriously. The amount you borrow can stick with you and affect everything you plan on getting in the future, for several years, like an auto or mortgage loan. My husband is almost 30 and is still paying off his student loans! Consider carefully how much you need to take and know your options for tuition assistance. If you do want to borrow student loans, make sure you fill out the Free Application for Federal Student Aid, or FAFSA, to apply. You should also apply for scholarships, find an on-campus job or paid internship, and budget accordingly to help reduce the overall amount that you need to borrow each semester. While it may cost you time and effort now, it’ll save you more money in the future.
Start Prepping Now
Going to college can be stressful, but it should be fun too! Don’t add any financial stress to the mix. Preparing yourself with the steps listed above can make your first semester go more smoothly and set you up for a great first year. Always remember, Alltru is in your corner and here to help you every step of the way. Whether you need help opening a checking or savings account, withdrawing from your accounts, or creating a budget, a Certified Credit Union Financial Counselor can help.
