Every September, thousands of students arrive in New York City ready to begin a new chapter. Some are moving into residence halls for the first time. Others are commuting from home or settling into their first apartment while juggling classes, internships and part-time jobs.
Between orientation, course schedules and figuring out the subway, managing money often falls low on the priority list. But for many students, college is also the first time they’re making financial decisions entirely on their own—and those early choices can have an impact long after graduation.
“Nobody tells you that your first paycheck won’t look like the amount you expected, or that a credit card offer can impact your financial future,” said Mandy Kelso, Head of Financial Education at TD Bank U.S. “College is often the first time students are making financial decisions on their own. The good news is that financial confidence isn’t about knowing everything—it’s built through small habits and learning along the way.”
Living in New York presents opportunities unlike anywhere else, but it can also test a student’s budget. Daily subway rides, grabbing coffee between classes, ordering late-night food during study sessions and meeting friends around the city may not seem expensive individually, but together they can quickly strain finances.
One of the best habits students can build early is simply paying attention to where their money is going. Reviewing transactions regularly or using budgeting tools through a banking app can make it easier to spot spending patterns before they become financial stress.
Many students also experience another surprise when they receive their first paycheck from a campus job, internship or work-study position. The amount deposited into their account is often less than expected because of taxes and other deductions.
Understanding the difference between gross pay and take-home pay helps students create a more realistic budget and avoid spending money they haven’t actually earned.
Borrowing for college is another area where understanding the details matters. If scholarships, grants and student loans exceed tuition and other educational expenses, schools may issue students a financial aid refund.
While receiving a refund can feel like extra money, it’s important to remember that loan funds generally must be repaid, often with interest. Before using those dollars for discretionary purchases, students should understand how much they’ve borrowed, what repayment may look like after graduation and how interest can increase the overall cost over time.
For students who are new to credit, a secured credit card may be one option for beginning to build a credit history responsibly. Unlike a traditional unsecured credit card, a secured card typically requires the customer to provide funds upfront, often as a minimum amount held in a restricted savings account.
When used responsibly, a secured card can be a helpful way to start establishing credit.
Making payments on time, keeping balances low and understanding interest, fees and due dates are all important practices. Over time, responsible credit use may help individuals build a credit history that could be considered when applying for future credit products, such as credit cards, auto loans or other lending products.
The habits students build now can follow them long after graduation. Learning how credit works and using it responsibly can help set them up for future milestones, from renting an apartment to qualifying for a loan,” Kelso says.
Students should also be aware that financial risks don’t only come through mailboxes or bank statements; they increasingly arrive through smartphones and laptops.
From fake apartment listings and fraudulent job opportunities to phishing emails and text message scams, college students are common targets because they’re often opening new accounts, searching for housing or looking for flexible employment.
“Students live so much of their lives online that protecting personal information has become an important financial skill,” Kelso said. “A little caution can go a long way when it comes to avoiding scams and identity theft.”
Using strong passwords, enabling multi-factor authentication and verifying requests for personal or financial information before responding are simple steps that can help reduce the risk of fraud.
While graduation may feel years away, college is also an ideal time to begin thinking beyond the next semester. Understanding employee benefits, retirement savings options and expected salaries in a chosen profession can help students make more informed financial decisions throughout school.
It’s equally important to consider how future student loan payments may fit into life after college. Borrowing thoughtfully today can provide greater financial flexibility tomorrow.
No student starts college knowing everything about personal finance, and they don’t have to. Financial confidence develops over time through consistent habits—tracking spending, asking questions, saving when possible and continuing to learn.
Whether students are arriving from another borough, another state or across the globe, learning to manage money is one of the most valuable skills they’ll take with them after college. The lessons may not appear on a class schedule, but they can shape financial success for years to come.
Understanding how to manage money and make informed financial decisions can help set students up for success long before graduation. That’s why banks like TD provide financial education resources on topics such as paying for college, understanding taxes, credit awareness, fraud prevention and budgeting, helping students and families build confidence as they navigate important financial milestones.
Students and families can also visit https://www.td.com/ or their local TD store to learn more about available educational resources, support and back-to-school promotional offers currently being offered.
***The information provided is for educational purposes only and should not be considered financial, legal, tax, or investment advice. Financial decisions should be based on your personal needs and circumstances.***
