From OHIO DEPARTMENT OF COMMERCE
As 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 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 ensuring 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 tips:
- Overestimate expenses, underestimate income: To make sure unexpected costs are accounted for, it is recommended to budget conservatively. In other words, people shouldn’t look at their budget through rose-colored lenses. This will help avoid financial shortfalls.
- Build an emergency fund: Because no one can predict the future, setting savings goals that include an emergency fund can help prepare students financially for unforeseen – and costly – circumstances.
- Distinguish needs vs. wants: The department recommends completing an honest assessment to understand financial priorities to help curb unnecessary spending. It recommends to focus on needs over wants.
- Track and adjust budgets regularly: To ensure their budget remains aligned with current financial realities, students should review their spending habits on a regular and consistent basis.
- Use credit cards cautiously: The department recommends students spend only what they can realistically afford to pay off monthly, to help 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.
