From Freshman to Financial Planner: Lessons Learned Along the Way

As I return to my alma mater, Cornell College, to receive a young alumni achievement award, I can’t help but feel not so young anymore! It seems like yesterday I was flying from my home in sunny Arizona to experience Iowa’s humid summers and snowy winters. As a first-generation immigrant and student, the college experience was both foreign and intimidating.

Fortunately, despite the initial challenges, my journey at Cornell was transformative. I received a high-quality college education supported by incredible staff, faculty and classmates. I formed life-long relationships with people worldwide and experienced opportunities that shaped who I am today.

Reflecting on my journey, I’m compelled to share financial wisdom I wish I’d known as a college student. Financial illiteracy is a pervasive issue, and many college students overlook the importance of having a financial plan simply because they don’t know where to start. After spending over 10 years helping people achieve more financial security as a CFP® professional, I understand how crucial it is to learn personal finance early. For most new college students, financial planning takes a back seat. They often lack knowledge of basics like credit, taxes, and investing, leaving them vulnerable to impulsive decisions. But it’s never too early to start planning and learning.

Here are six essential financial planning tips for college students - especially if you want to leverage unique opportunities such as studying or traveling abroad:

1. Empower yourself with financial knowledge. It can be done through formal education or by taking advantage of the limitless resources available online. Knowledge is power and even more so when it comes to learning about making sound financial decisions.
2. Set specific goals and make a plan. Becoming financially-savvy starts with setting goals. The more specific, measurable and time-bound they are, the higher the likelihood of achieving them.
3. Save early; safe often. This one may be trickier as you may not be working while in college or if so, your earnings may be limited. That said, saving is a habit you need to develop early and one you’ll regret avoiding if you don’t. Automating your savings makes this easier.
4. Budget with purpose. Budgeting empowers you to use your financial resources wisely. Aim to understand how you spend and on what and ensure it aligns with your vision. This can also help you save for a specific college goals such as studying or traveling abroad, or covering an unexpected emergency.
5. Boost your income. Financial planning involves moving different levers, starting with spending less or making more. Think creatively about how you can earn more income as a college student. This could take many different forms such as starting a side-gig, leveraging work-study opportunities, or mentoring other students. This strategy made a big difference when I landed an college internship abroad and needed to save up for personal living expenses. Bonus: visit your student financial aid office to ask about financial assistance! You’ll be surprised how much financial aid/support may be up for grabs once enrolled—I know I was.
6. Don’t go at it alone. Personal finance can be complex, overwhelming and ever evolving. Working with a financial planner is one of the ways to learn, as they can provide personalized guidance to help you as a college students build a solid financial foundation. However, if hiring a CERTIFIED FINANCIAL PLANNER® professional isn’t in your budget yet, there are options. Look for trustworthy resources, such as reputable online courses, books or even community-based financial educational programs. When seeking advice, be mindful of who you’re learning from and ensure they’re qualified to provide accurate, reliable information.

As a student, I can’t say that I’m proud of all the decisions that I made while in college. However, I am proud of realizing the importance of personal finance at an early age, having the discipline to live within my means and ultimately being patient when it came to rewarding myself. In the end, the right guidance, whether professional or self-directed, can help set you on the path to financial success. Start here with LetsMakeAPlan.org.