As students head off to college, they face new adult responsibilities, including managing their finances. Building a solid foundation in managing finances is crucial, according to Sara Wilson, director of product innovation at Student Connections.

Start Building Your Credit

College is the perfect time to start building your credit score, said Courtney Alev, consumer financial advocate at Credit Karma. A credit score is a mathematical formula that helps lenders determine how likely you are to pay back a loan. Alev recommends starting your credit card journey with secured credit cards or student credit cards, and to only spend what you can afford to pay off each month.

Budget and Save

Having multiple sources of income, such as a part-time job or financial aid, can make it difficult to manage finances. Budgeting is still a crucial step toward achieving financial stability. You can budget by using an app, creating a spreadsheet, or simply writing your expenses down on paper. Creating an emergency fund can also save you a headache down the road.

Talk About Money and Have a Plan

Being transparent about your finances can help you avoid feeling pressured to spend above your means. Having a plan for your student loans, including knowing how much you’re borrowing and what your expected total repayment amount is, can also help you navigate and manage your debt. Take advantage of the resources that your school provides, such as financial aid and budgeting resources, to help smooth your financial journey.

Original reporting: Texarkana Gazette — read the source article.