Budgeting Basics: Take Control of Your Finances

Creating and following a budget is one of the most powerful steps you can take toward financial wellness — especially as a student. A budget is more than just numbers; it's a plan for how you'll use your money to meet your needs, reduce stress, and achieve your goals.

Start with a monthly spending plan.

• A spending plan helps you map out your income and expenses so you can track where your money is going. It ensures you can cover essentials, avoid overspending, and build savings over time.

Know the difference: fixed vs. variable costs.

• Fixed costs stay the same each month (e.g., rent, subscription services, loan payments).
• Variable costs fluctuate (e.g., groceries, transportation, entertainment).
  Understanding these can help you identify where to cut back if needed.

Make the most of limited income.

• Student income — whether from part-time jobs, work-study, or allowances — can be tight. Budgeting helps you stretch those dollars, prioritize essentials, and plan ahead for irregular expenses (like books or travel).

Budgeting resources

• Tips & tricks for making a budget
• Information and tools on how to make a budget.
• Microsoft Excel budget templates

What is saving?

Saving is the act of setting aside money now to prepare for the future.

What to save for? 

• Big ticket items, such as a car, house, or wedding
• Emergencies, such as medical expenses or unemployment
• Retirement
• Other unplanned expenses, such as car repairs

Where to put savings?

Banks and credit unions are the two common types of financial institutions that offer savings options.

Banks

• For-profit institutions that offer a wide range of financial services like checking/savings accounts, loans, and credit cards.
• Open to the general public and often have large networks of branches and ATMs.
• May have higher fees or lower interest rates on savings, but provide convenience and technology access.
• Banks are great for accessibility and tech tools.

Credit Unions

• Not-for-profit cooperatives owned by their members.
• Typically offer the same services as banks but often with lower fees, better interest rates, and more personalized service.
• You usually need to meet membership requirements (like living in a certain area or being part of an organization).

Credit unions are ideal if you value community focus, lower costs, and member-first service.

Savings Accounts vs. Certificates of Deposit vs. Money Market Accounts 

Generally, banks and credit unions provide four basic types of accounts to help you manage your settings:

• Savings Accounts – Ideal for short-term goals and emergency funds. They earn modest interest and allow easy access, though some may limit the number of withdrawals per month.
• Certificates of Deposit (CDs) – These accounts lock in your money for a set period (like 6 months or 1 year) in exchange for a higher interest rate. There are penalties if you withdraw early.
• Money Market Accounts – These offer higher interest than regular savings accounts and often come with check-writing privileges. They may require a higher minimum balance.
• Checking Accounts – Best for everyday spending. These usually don’t earn interest, but they allow unlimited withdrawals and purchases via debit card or checks.

Saving resources

• Emergency Funds
• Better Money Habits
• 28 Proven Ways to Save Money

What Is Credit?

Credit is your ability to borrow money now with the promise to repay it later. It can come in many forms, such as credit cards, loans, or financing agreements.

What is a credit score?

A credit score is a number that lenders use to assess how likely you are to repay your debts.

• Scores range from 300–850
• 670+ (FICO) or 700+ (VantageScore) is considered good
• Your score is based on factors like payment history, amount owed, credit length, and new credit inquiries.

What is a credit report?

A credit report summarizes your borrowing history and repayment behavior. It does not include your credit score.
You can access your report for free once per year from each of the three credit bureaus: Annual Credit Report

How to use credit wisely?

Tips to establish and maintain good credit:

• Open a checking and savings account
• Start with one credit card
• Make on-time payments every month
• Keep your credit utilization below 30%
• Let accounts age—length of credit history matters
• Check your credit report regularly

Credit resources

• Get a free credit report annually
• Consumer Financial Protection Bureau resources
• Federal Trade Commission resources

What Is Debt?

Debt is money borrowed that must be repaid—often with interest. Mismanaging debt can hurt your credit and overall financial well-being.

Common student traps to avoid:

• Payday loans or high-interest short-term borrowing
• Overusing Buy Now, Pay Later services without a repayment plan

Paying off credit card debt:

There are two popular methods:

• Avalanche Method
  Pay off the card with the highest interest rate first while making minimum payments on others. Saves more on interest long term.
• Snowball Method
  Pay off the card with the smallest balance first to gain momentum and confidence.

Tip: Pause new charges while working on debt payoff.

Debt resources

How do I reduce my credit card debt?

Salary Negotiation & Career Prep

Learning to advocate for your worth is a key life skill—whether it’s for a job, internship, or graduate assistantship. The Career Development Center offers tools and workshops to help you build confidence, understand your market value, and navigate compensation conversations with clarity.

You should:

• Do your research: Use tools like Salary.com, Glassdoor, and the Illinois Comptroller's Salary Database to understand market rates for your field.
• Look beyond salary: Evaluate total compensation including benefits, retirement plans, and paid time off.
• Build your skills: Learn strategies to negotiate effectively and practice what to say, like:
  “Based on my research and the value I bring, I’d like to discuss a salary that aligns with the market rate for this role.”
• Get support: The Career Center offers salary negotiation workshops, personalized coaching, and step-by-step guidance to help you prepare and feel confident.

Explore more strategies and tools at Salary Negotiations.

Negotiations resources

• Work Smart & Start Smart: Salary Negotiation
• Inspire Salary Negotiation Workshop Handout (pdf)

Financial Wellness & Mental Health

What is financial wellness?

It’s your ability to manage day-to-day finances, prepare for unexpected expenses, and make choices that support your long-term financial security and personal values.

Did you know?

Financial stress is one of the top contributors to anxiety, burnout, and sleep issues among college students. But the good news? But small, intentional habits can make a big difference in your overall well-being.

How to promote financial & mental wellness.

• Set realistic financial goals – Start small and build confidence over time
• Take weekly “money check-ins” – Reduce anxiety and stay grounded
• Build a “stress-free buffer” – Emergency savings offer peace of mind
• Know your needs vs. wants – Prioritize essentials without guilt
• Reach out for support – Talk to a financial coach or counselor if money feels overwhelming

You’re not alone!

Struggling with money is common in college. The goal isn’t perfection—it’s progress. If you ever feel stuck or stressed, know that tools and people are here to help.

Small habits = big change

Tracking one purchase. Asking one question. Setting one goal. These small steps build your financial confidence—and your peace of mind—over time.

Financial wellness is about more than dollars and cents. It’s about creating stability, feeling in control, and giving yourself the mental space to focus on what matters most.

Financial wellness resources

• Financial wellness impacts your mental health 
• Money and mental health
• Wallet, body and mind: The connection between financial wellness and physical and mental health

• Credit Card Repayment Calculator
• Savings Calculator
• Car Loan Calculator
• Meal Savings Calculator

Student Money Management Center 

Badges – build your financial skills with the SMMC badges program

Want to boost your financial knowledge at your own pace? The Student Money Management Center (SMMC) offers free, self-paced courses through its Badges Program, designed to help you master essential money topics like budgeting, credit, student loans, and more.

Podcasts - tune in: Making Cents of Money podcast

Get financial tips on the go! The Making Cents of Money podcast explores real-world money topics in quick, digestible episodes.

Webinars - learn live with the Get Savvy webinar series

Looking for expert financial advice on real-life topics? The Get Savvy: Grow Your Green Stuff webinar series brings together financial educators across Illinois to deliver free, interactive webinars throughout the academic year.