Juliana Henry was born in Bogota, Colombia, and was adopted as an infant by a family in Massachusetts, where she attended high school. During the college application process she decided that she wanted to attend a big university, one with Greek life and lots to do, and she wanted to find an institution with a highly ranked business program. The University of Arizona fit the bill, and the warm weather far from the harsh New England winters didn’t hurt either.

Juliana had worked hard during high school, especially the summer before she left for college when she saved a lot of money, so she opted to try attending the university without holding an outside job. The trade-off was that she had to keep her spending low. “It was a tough transition from having lots of money while working full time,” she says, but she quickly learned how important it was to have a balanced budget. “When I first got to school I wasn’t able to immediately adjust to the thought of not buying things when I wanted them. I have had to keep my spending to the bare minimum in college. That was a tough transition.” Like many students, Juliana also has a credit card now, which she got to begin building a good credit score. She has to be careful with that, too, and she tries to use it only for necessities. “My parents cosigned for it,” she says, “but I am still the one who has to make the monthly payments!”

After a year at the University of Arizona, Juliana has realized that she actually misses New England more than she thought she would and has decided to transfer to a college back East. “The process of applying to colleges as a transfer was exhausting but worth it in the end,” she says. “I am at a point in my life where I need to make decisions that will truly benefit my future and help me set up my career.” She sees herself working in hotel management in the future and hopes to get a job at one of Boston’s many fine hotels. Her advice for other first-year students? “Save much more than you think you will need. That money can come in handy!”

Although your primary goal in college should be a strong academic record, money or the lack of it can make it easier or more difficult to complete your degree. Juliana made a hard choice; she had just enough money to manage expenses without working, but her strict budget didn’t allow her to spend her hard-earned dollars on anything that was unnecessary. Living within a budget during the first year of college is sometimes tough, and that’s why some students begin to depend on credit cards. Counting on credit cards to extend your available financial resources can be a slippery slope, however. Juliana has a credit card, but she knows that she needs to be careful to use it for necessities.

Educators recognize that not understanding personal finances can hinder a student’s progress, and mandatory personal finance classes are now being added in many high schools and are available as options at some colleges. The purpose of this chapter is to provide general information and suggestions about managing your money. Learning to live on a budget during the college years is a skill that will serve you well for the rest of your life. Think of this chapter as a summary of needed financial skills; if you want more information, consider taking a personal finance class at your college or in your community.