The summer before college is filled with excitement. Between all the planning and anticipation, one area that deserves your attention before school starts is your finances.

Getting your money matters in order now will help reduce stress later. From understanding your true college costs to setting up a student-friendly bank account, here’s a smart financial prep checklist of 10 smart money moves to make before college starts.

1. Understand Your Total Cost of Attendance (COA)

Your school’s Cost of Attendance is more than just tuition. It also includes:

  • Other school fees

  • Books and supplies

  • Room and board

  • Transportation

  • Personal and miscellaneous expenses

Use your school’s financial aid portal or refer to your award letter to view your school’s specific COA. Then compare it to your financial aid package to determine what you’ll need to cover out of pocket or from other sources.

2. Create a Basic College Budget

Using a spreadsheet or budgeting app, make sure you understand what you expect to earn or receive each month (your income), what you’re planning to spend (your expenses), and what you’ll need to set aside for rainy days or to pay for extras (your savings & goals).

Tools You Can Use: HESC offers a free Financial Literacy website called iGrad that includes a budgeting tool to help you plan ahead and keep your finances on track.

3. Review Your Financial Aid Package

Double-check that your FAFSA or state financial aid application is complete. Make sure you understand the types of aid that you’ve been offered and what your rights and responsibilities are.

  • Grants and scholarships = free money

  • Student loans = must be repaid with interest

  • Work-study = part-time job as part of your aid package

If you’re receiving a federal student loan, know if your loan is subsidized or unsubsidized. Subsidized loans are based on student need, and you won’t be charged interest while you’re enrolled in school, during grace periods or deferment. Unsubsidized loans don’t require students to demonstrate need, and interest starts accruing immediately even while you’re enrolled in school.

4. Apply for More Scholarships

Many scholarships are still accepting applications during the summer. In the quest for free money, stick with trusted resources to avoid scams, gimmicks and dead ends. If you treat scholarship hunting like a part-time job, a few hours now could save you thousands later.

Search these trusted sources and track your application process in a spreadsheet to stay on top of deadlines and other important details:

5. Open Student-Friendly Bank Accounts

Choose a checking account with no monthly fees and easy ATM access. Link it to a savings account to monitor your spending and stash away extra cash. If you’ll be working or receiving financial aid funds, set up direct deposit to make it effortless.

6. Learn to Manage Money Wisely

Creating healthy habits with money is one of the greatest skills you can learn that will last you a lifetime. Understand the differences between needs vs. wants and track your expenses with free apps or in your phone’s notes.

Want to level up your money smarts? HESC’s free Financial Literacy Center—iGrad—features free courses, budgeting tools and a money personality test to help you understand how your views affect your behaviors with money. Many banks have budgeting tools available as well to help you track your spending and saving goals.

7. Talk With Your Family

It’s important to have clear conversations with your family about what they agree to pay and what you’ll be expected to cover.

Some questions to consider:

  • Who will pay for tuition, books, groceries and extras?

  • Will your family help contribute monthly or by semester?

  • What happens in a financial emergency?

If your family or parents are borrowing money on your behalf like through a PLUS Loan or Private Parent Loans, make sure they’ve completed the application and other necessary financial aid steps.

8. Complete Loan Entrance Counseling

If you’re borrowing federal student loans, you’re required to complete a quick online entrance counseling session to help you understand the repayment responsibilities and rights as a borrower. The counselor will explain how the interest of your loan works to make sure you know how much you’ll be charged on the money you’re borrowing. They’ll also make sure you know when you’ll need to pay it back and who your loan servicer is so you know who to contact with questions in the future.

9. Consider a Part-Time Job

Not only can working a few hours a week help you cover costs, it helps you build valuable experience for your resume. Explore job options on or near campus to find work that fits your class schedule. Check with your school to see if they participate in the federal work-study program which could lead to on-campus positions at your school’s bookstore, dining hall or library.

Technology offers new possibilities, too. Look for online tutoring, freelancing or other work to supplement your income while you earn your degree.

10. Prepare for Financial Independence

For many people, college is the last phase of life before you start managing your own money. Be ready for the financial part of adulting by learning how to pay bills online and setting up email or app alerts for your bill due dates and significant balance updates. Know how to contact your school’s financial aid office so you can ask questions or get guidance if you run into something you’re unsure about.

Take it One Step at a Time

College is a big transition and it’s normal to feel a mix of excitement and nerves. Developing a strong financial mindset this summer will set you up for a more confident start in the fall.

Tackle one step at a time and always ask questions when you’re unsure.

HESC is here to help. Explore our free courses and tools for more tips and tricks at our Financial Literacy Center.

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Your Guide to College Scholarships & Grants