“Cha-ching” is the sound of spending your well-earned money. Call me Mr. Krabs, but I hate spending my own money. In 2026, I plan to learn how to budget.
I have spent 19 years struggling to save money effectively while still leaving room for essentials and occasional outings.
I was never taught how to save money. I was only told not to spend it. It is never too late to learn.
Budgeting is one of the best ways to build financial literacy. As a college student in charge of your own finances, it can be difficult to decide how to spend your money.
If you are paying for college and taking out loans, you need a plan to repay that debt after graduation. You have four years to save, build credit and prepare for expenses such as an apartment.
Savings account
The easiest way to start saving is to open a savings account. Set a goal for that account, whether it is for school or an apartment. Having a goal in mind can make it more rewarding to watch your savings grow.
It is OK to start with a small deposit, but try to save money from each paycheck. As your income increases, contributing more can help the account grow faster.
Starting a small savings account now can make a significant difference five years later.
My dad once told me it is best to put half of your paycheck into savings, but that is not realistic for everyone. Sometimes saving $10 is what works best.
Set aside money each week for rent, gas, groceries and special occasions. Some people use a budget binder, but simply tracking weekly expenses can work just as well.
I give myself a weekly budget, which varies based on my paycheck, and put whatever is left into savings. I also set aside an extra $30 each week for emergencies.
NEVER touching your savings account is the No. 1 rule. It is a savings account for a reason, and if you need to take money from it, you need to cut back on your spending.
Managing money
Creating a weekly budget helps, but it is also important to be mindful of where your money goes.
It is easy to spend money when you have it. I have experienced this myself, only to feel financially strained when I need it most.
For me, I like to mentally budget. I never allow my checking account to go under $100, and currently, I am trying not to let it go under $500. I want to learn how to say “no” this year and prioritize only buying what I need, and not what I want.
Another trick I use is that I act like I have less money than I really do. This mentally tricks me into thinking I can’t afford the items I want.
Being financially responsible at a young age takes effort. You learn how to say “no” and set limits.
When shopping, ask yourself: “Do I really need this, or could I use the money for something more important? Do I need new clothes, or am I influenced by trends? Do I need to eat out, or do I already have food at home?”
I have fallen victim to these situations. When I am with friends, I sometimes make impulsive decisions, as if I will not have another opportunity to spend time with them. The truth is that your friends are in the same financial situation.
I wish I had learned financial literacy earlier, and I still struggle. If someone had explained loans and how to use a credit card properly, I would feel more confident managing my money.
Financial literacy should be a general education requirement. College students are often described as broke and living on ramen, but that does not have to be the case. With better education on money management, students would be better prepared.
Small habits can lead to significant financial gains. Wealthy people spend carefully, which keeps them wealthy. Adopting that mindset can make a difference.
