College students may be experts at pulling off last-minute study sessions, but when it comes to managing money, cramming simply does not work. The financial habits students develop during college can shape their decisions for years to come. Dr. Kelly Rush, a Finance Professor, Division Chair, and Financial Planning Program Coordinator at Mount Vernon Nazarene University, says this season offers students an important opportunity to build a strong financial foundation. Rush, who also serves on the Board of Directors for Kingdom Advisors, encourages students and their parents to approach college finances with intentionality, clear communication, and biblical wisdom. Start Building Financial Habits Early Proverbs 22:6 says, “Train up a child in the way he should go; even when he is old he will not depart from it.” Although this verse applies broadly to a child’s spiritual formation, its wisdom can also inform the way parents teach financial responsibility. The habits students establish during college may either move them toward wise stewardship or create patterns they will need to overcome later. Unfortunately, many college students rely on what Rush calls a “mental budget.” They may have a general idea of how much they should spend, but few have a written plan or consistently track where their money goes. Without those practices, students may watch their bank balances fall more quickly than expected without understanding why. A written budget allows them to compare what they intended to spend with what they actually spent. College expenses may feel irregular, but that makes budgeting more important—not less. Learning to plan, track, and adjust now can establish habits that continue long after graduation. Understand the Value of Time One of the most important financial concepts for college students is the time value of money. When someone saves or invests, time can become a powerful advantage. Even modest amounts accumulated consistently may grow significantly over a long period. That means college students do not necessarily need large incomes to begin building healthy financial habits. They need to begin early. Psalm 90:12 says, “Teach us to number our days that we may get a heart of wisdom.” Ephesians 5:15–16 similarly encourages believers to walk wisely and make the best use of their time. Students can apply that wisdom by beginning to save, give, and manage money faithfully while they are young. The earlier those practices begin, the more time they have to shape a lifetime of stewardship. However, time does not always work in a student’s favor. Time benefits savers and investors, but it can work against borrowers. The longer the debt remains unpaid, the more interest it may accumulate. Avoiding unnecessary consumer debt during college can therefore be just as important as beginning to save. Recognize the Momentum of Small Purchases Money moves quickly in college. Students may understand major expenses such as tuition, transportation, or textbooks, yet underestimate the effect of frequent smaller purchases. Coffee, restaurant meals, streaming subscriptions, delivery fees, and spontaneous outings may not seem significant individually, but together they can consume a large portion of a student’s budget. The problem is often not one unusually large purchase. It is the sheer number of transactions. Tracking expenses helps students recognize this momentum before it overwhelms their finances. A budgeting app can be especially helpful for students who rarely use cash and manage most of their financial lives digitally. The FaithFi app, for example, allows users to create a customized spending plan, organize transactions, and choose a money-management approach that fits their needs. The goal is not simply to restrict spending but to help students see clearly where their money is going. Create a Plan for Financial Independence Parents and students should also discuss when specific financial responsibilities will transfer from one to the other. Rather than leaving those expectations unclear, families can create a gradual plan for independence. They might determine when the student will begin paying for expenses such as: Gas Clothing Entertainment Cell phone service Insurance Groceries or meals Transportation costs Parents and students are on the same team, but every team needs a game plan. Clear communication about which expenses belong to the student—and when that responsibility begins—can prevent confusion and unnecessary tension. Once students begin managing their own expenses, it may also be appropriate for them to open an individual bank account. This gives them an opportunity to practice budgeting, monitor transactions, and take ownership of their financial decisions. Approach Credit Carefully College can also be a reasonable time to begin establishing credit, provided the student is prepared to use it responsibly. One possible starting point is a secured credit card. These cards generally require a refundable deposit that serves as collateral for the credit issuer. Students can then use the card for one predictable expense, such as gasoline, and pay the balance in full every month. Using a card for a limited, budgeted expense can help prevent overspending while gradually establishing a credit history. However, building credit should never become an excuse to carry debt. If a student cannot pay the entire balance each month, the card may be doing more harm than good. The objective is to demonstrate responsible payment habits—not to finance a lifestyle the student cannot afford. Find Flexible, Meaningful Work Income is another important part of a college budget. A consistent part-time job can help students cover expenses while teaching discipline, responsibility, and time management. The ideal position offers a strong return for the student’s time while providing enough flexibility to accommodate classes and coursework. This may include traditional campus employment, but students can also consider opportunities such as refereeing youth sports, tutoring, providing haircuts, doing freelance work, or offering another practical service. Whenever possible, students may also benefit from finding work related to their field of study. A nursing student working in a hospital, for example, may gain professional experience while earning income. The goal is not simply to make as much money as possible. It is to find work that supports the student’s education and contributes to long-term growth. Avoid the Promise of Financial Shortcuts One of the most dangerous temptations facing students is the promise of a quick financial return with little effort or sacrifice. That temptation can appear through speculative investments, online schemes, or sports betting. The rapid growth of sports betting on college campuses is particularly concerning because it can become addictive and lead students into escalating financial losses. 1 Timothy 6:9 warns, “Those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction.” Wise stewardship does not attempt to bypass time. It embraces patience, discipline, and steady faithfulness. Proverbs 13:11 says, “Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” Students should be skeptical of any opportunity promising extraordinary rewards without meaningful work, risk, or patience. Biblical wisdom points instead toward consistent saving, honest labor, careful planning, and contentment. Faithfulness Begins With the Next Decision College students may not have large incomes, extensive savings, or predictable expenses. But they do have an opportunity to begin practicing faithful stewardship. A simple written budget, honest conversations with parents, cautious use of credit, steady work, and resistance to financial shortcuts can establish habits that serve them for decades. The goal is not financial perfection. It is learning to manage what God has provided with wisdom and faithfulness—one decision at a time. On Today’s Program, Rob Answers Listener Questions: Is there a tax limit on how much I can give my child, and does that apply if I’m helping pay her student loans? Also, could I set up a personal loan for my daughter so she can repay me over time at a lower interest rate than the 8%-plus she’s currently paying on her federal student loans? Resources Mentioned: Faithful Steward: FaithFi’s Quarterly Magazine (Become a FaithFi Partner) Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob West Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety Rich Toward God: A Study on the Parable of the Rich Fool Find a Certified Kingdom Advisor® (CKA) FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
