Many college students are not well-equipped to make sound financial decisions, and there are a couple of reasons why. For one thing, they haven’t had to manage their own finances to this point. Even those that have held a job or had to maintain an asset like a car have had help from their parents. Very few students reach college with the experience of paying for rent and utilities under their belt. But even worse is the fact that they have received little to no education on the subject of personal finance. They might not even have a bank account, much less the knowledge needed to earn, save, budget, and build credit. Unfortunately, this makes them prime targets for credit card companies, who swoop in to offer young adults what seems to be “free” money, but actually comes with unfavorable terms such as high interest rates, annual fees, and more. So if it happens that you’re not particularly savvy when it comes to financial matters, here are just a few guidelines to help you make wise decisions during your time in college.

The first and perhaps most important lesson is that you must live within your means. This can be a tenuous undertaking when you are forced to take on the debt of student loans, you are living off your parents, or both. But you’re now an adult and it’s high time you learned how to handle your money in a responsible manner. And the easiest way to start is by creating a basic budget. You know what your expenses are, and if you don’t you should sit down with your parents to figure it out. Your list should include tuition, fees, and related expenses, as well as dorms, a meal plan, and other living costs. If you have a car, you’ll need to include loan payments and all associated costs such as registration, insurance, fuel, parking, and maintenance. And you’ll no doubt have other items to add.

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