How to Money for CWU Students
story by Gilberto Martinez-Camacho, design by Faith Johnson
After a long and immensely stressful week, you find yourself pulling through the drive-thru of your favorite fast food restaurant in anticipation of a relaxing pick-me-up. The only problem? Your card declines. You have no choice but to return home in shame. Could this have all been prevented?
Beyond textbooks and late-night study sessions, college presents another critical lesson: learning to manage money. As one online expert put it, “understanding how you communicate about finances is one of the most important skills a student can develop." Developing financial literacy is essential for college students. It's about creating a plan for your education, understanding credit and making informed decisions about your financial future.
Professor's Playbook: Plan Your Career, Not Just Your Classes
Steele Campbell, an associate professor at Central Washington University and a financial planning guru, drops some serious knowledge. He says way too many students wander into their careers without a map. “Your college education…should be more geared towards developing your career. It's the first step,” Campbell says.
Think of it this way: you wouldn't start a marathon without knowing the route. Campbell emphasizes that college isn't just "extended schooling," but the launchpad for your future hustle. Choose a major that aligns with your career goals to avoid drowning in debt without a payoff.
Campbell also stresses that money isn't just about numbers; it's about communication. Awkward money talks can cause major friction in relationships, so understanding your own "money language" and how to talk to others about finances is key. “Most people don't want to be alone for the rest of their life,” Campbell says, “...And you are going to bring somebody into your financial life or become part of somebody else's financial life… so understanding how you communicate around finances and how you prefer people to communicate with you is going to help you in that relationship or those relationships.”
Finance Translator: Decoding the Money Lingo
Here’s a crash course in finance vocab, because understanding the lingo is half the battle.
Roth IRA: Think of this as your "future you" savings account. You pay taxes on the money now, but when you retire, you don't pay taxes on the withdrawals. It's a sweet deal if you think you'll be in a higher tax bracket later in life.
CD (Certificate of Deposit): It's like a super-serious savings account. You park your money for a specific time, and the bank pays you interest. But if you try to take it out early, there are penalties.
Stock: Imagine owning a tiny piece of Apple or Amazon. That's what a stock is. You're basically betting on the company to do well. It can be risky, but it's also how people grow their wealth.
FICO Score: This is your financial reputation. It's a number that tells lenders how likely you are to pay back money. A good score gets you better loan rates and makes it easier to rent an apartment.
Credit Card: A magical (and dangerous) piece of plastic that lets you buy stuff now and pay for it later. Use it wisely, and it builds credit. Abuse it, and you'll be drowning in debt.
Secured Credit Card: This is like a training-wheels credit card. You put down a deposit, and that's your credit limit. It helps you prove you can handle credit.
Cash Back Card: Get paid to spend! These cards give you a percentage of your purchases back as cash. It's like finding free money.
Student Card: Designed for broke college students (like us!), these cards often have easier approval requirements and can help you start building credit.
Time for the good stuff: How to actually get your finances in order.
Credit Card Quest: Choosing Your Weapon
Building credit is essential, and credit cards are a key tool. According to NerdWallet.com, here are some top credit cards for students:
Discover it® Student Cash Back: This card is a solid choice for earning rewards on everyday spending.
Capital One SavorOne Student Cash Rewards Credit Card: If you spend a lot on dining and entertainment, this card can rack up those rewards.
Capital One Quicksilver Student Cash Rewards Credit Card: A straightforward option with a flat cash-back rate on all purchases.
Credit Card Commandments: Rules to Live By
Thou shalt pay thy balance in full and on time, every single month. Seriously, this is the golden rule.
Thou shalt not max out thy card. Keep your spending below 30% of your credit limit.
Thou shalt not spend money thou dost not have. Credit cards aren't free money.
Thou shalt not apply for a million cards at once. Too many applications hurt your credit score.
Financial Hacks for College Students:
Budget like a boss: Track your income and expenses. There are tons of apps to help you with this, such as: Rocket Money, YNAB, and Quicken Simplifi(Apps available on IOS and Android).
Become a savings ninja: Making savings a priority, even with small amounts, to build a financial safety net. Even small amounts add up. Automate your savings if you can.
Debt is the enemy: Federalreserve.gov warns about the dangers of high-interest debt, so avoid unnecessary loans and credit card debt.
Info is power: To make smart choices, the National Endowment for Financial Education (NEFE) advises students to do their research and seek out reliable financial information. Don't just believe everything you hear (or see on TikTok).
Remember, this is your financial journey and you're in control. By taking the time to learn and implement these tips, you can level up your finances and set yourself up for a successful future.
