Whether you are a student yourself or supporting one, we can all agree this stage of life can be an exciting time. It is also a crucial window of opportunity to make smart decisions that could impact your life for years to come. But don't worry, because we have your back! Keep reading to further your financial education on everything from credit, to loans, to side gigs, and beyond.
- Take a look at where you stand
Before you make any financial decisions, you’ll need to take a realistic look at your overall budget. A “budget” is simply comparing your income to your expenses, then setting spending priorities. You can do this with old-fashioned paper and pen or use Banzai's online budget calculator.
- Start building credit
Credit scores aren’t guesswork or luck. They’re built from a clear set of behaviors that show lenders how you handle money over time. Every payment you make, balance you carry, and account you open helps you strengthen your credit report. Check out these most influential factors.
Payment history: Pay bills on time!
Credit utilization: Keep balances to 30%.
Length of credit history: Keep your older accounts open.
Credit mix: Keep a mix of different accounts open.
New credit activity: Don’t open several new accounts at once.
- Learn how to identify and avoid fraud
In today’s digital age, online fraud, cyber scams, and identity theft are more common than ever. Cybercriminals continue to evolve in their tactics, making it essential to stay informed and vigilant. At Nusenda Credit Union, we’re committed to helping you protect yourself and your assets.
As these tactics become more sophisticated, staying aware of how scammers operate is one of the best ways to protect your personal information and stay safe online. You can also check out this scam checker from Banzai.
- Be discerning about loans
Compare rates! Research your options, with a sharp eye toward the amount of interest you will be paying. Compare the Annual Percentage Rate (APR), repayment term length, and whether the interest rate is fixed or variable. Nusenda Credit Union offers a savings secured personal loan with lower interest rates and flexible repayment terms. Nusenda also offers other localized loan options including personal loans starting at 10.50% APR, auto loans starting at 4.74% APR, and specialized short-term or savings-secured assistance.
- Insure your belongings
It's a smart idea to have financial protection for your personal items, in case of disaster, theft, or damage. Thankfully, many policies are available at low-cost, such as renters or homeowners' insurance plans. For more information, check out - Wellness Center - Topic: Insurance.
- Build a strong savings account
Ideally, you'll have an emergency fund with at least three to six months' worth of living expenses. If this number feels difficult to achieve, start small. Even setting aside $25 a month can add up to a decent amount in a short amount of time. With Nusenda’s The Power of Change®, you can round up your purchases to the nearest dollar, then place the change wherever you need it most. For example, boost your savings, pay down your debt more quickly, or donate to a cause you care about.
Try automating the percentage or dollar amount of your paycheck to go into savings. Check out this Banzai calculator: Emergency Fund Calculator.
- Explore entrepreneurship
Entrepreneurship is on the rise: understand your options - We're seeing so many younger people opting to open up their own business rather than following a traditional career path, which is amazing! This article is a great launching point for any business-minded students: How to Become a Young Entrepreneur.
- Budget moving tips
Moving out is more expensive than you think. Know what you can afford before the move - A lot of students have an idealistic idea of what it means to live on their own but may not know the realities if they've been living in the dorms or at home. This calculator helps demonstrate what amount of rent you can afford based on your income: Rent Affordability Calculator.
- Interest is everything!
Interest is everything! A lot of students have no idea what interest even is, let alone how it can work for them. But college students have an advantage that a lot of other folks don't and that's time. The more they can set aside young, the more it will grow for them. Simple vs. Compound Interest Calculator.
We hope these financial wellness tips will make your transition into financial independence a little less daunting. At Nusenda Credit Union, we’re dedicated to improving our members’ financial well-being and supporting them through affordable products, friendly service, community involvement, and financial education. We'd love to find other ways to help you save money. You can reach us at (800-347-2838 or make an appointment to meet with us at any of our branch locations.