Setting financial goals for college students may seem overwhelming. You've got classes, exams, extracurriculars, friends, and sports. Financial planning may not be at the top of your to-do list. But you’re not in high school anymore, and isn't making money and building a stable financial future one of the reasons you went to college in the first place?
This article will guide you through setting short-term, medium-term, and long-term personal finance goals. Goal setting can be fun, we promise! Watching your strategies pay off and purchasing that new bike or paying off a chunk of that loan is a pretty satisfying feeling. Let's get started!
How to set financial goals as a college student
Do you already have a financial goal in mind? Maybe paying for next semester's books or saving for a new formal dress comes to mind. But some goals are not currently possible without the risk of racking up credit card debt. (Think sports car, backpacking South America, or that 5th Avenue apartment.)
The SMART goal-setting method is a neat way of accessing your goals and helping yourself succeed. Here's how it works:
- Specific – Get into the nitty-gritty here! Write down exactly what you want to achieve. For example, “I will save $1,000 over the next three summer months to pay for first-semester utilities.”
- Measurable – Make sure you have a way of measuring your goal's success or failure. For example, “having $1,000 in my KoraCard by the start of school means I've met my goal.”
- Achievable – This one's tricky, and you can be honest with yourself. It's okay if, as a college student, it's not reasonable to save for a house down payment or pay off all loans. Set goals you can actually meet. For example, “if I put away my extra money each month instead of spending it, I should be able to have a good emergency fund.”
- Realistic – Occasionally, putting your resources toward living expenses may be better than a less-pressing goal. Ensure your goal is realistic for your living situation and income requirements. For example, “I usually make more tips over the summer than I need, so there should be enough to save.”
- Time-based – This one's simple. There has to be a due date! For example, “I have three months to save.”
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Making SMART goals will set you up for achievable financial life victories. Plus, SMART goals can be used to set both academic and personal goals.
Short-term financial goals for students
Let's start with the quickest, most achievable goals! Short-term financial goals are, at most, two years away. Typically, these goals are ideal for more immediate needs or smaller goals you can reach faster. Here are some examples of short-term financial goals for students:
- Track your spending – Knowing how to save enough money is tough if you don't know what you're spending. The Kora app is a great way to track your spending and easily stay on top of savings goals.
- Start a side hustle – Get those applications out there! The gig economy is thriving and offers a great way for college students to build wealth for the first time.
- Budget for current wants or needs – We get it, we want the newest shoes and video games, too. But setting a realistic budget for 'fun' goals allows you to meet your 'need' goals.
- Start an emergency fund – For students, a good emergency fund isn’t a large amount of money; think $1,500 to $2,000 in a savings account. It's a just-in-case fund that helps you with minor emergencies.
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Already brimming with short-term goals you'd like to set? Perfect. Write those down and run them through your SMART exercise. You'll have a stack of feasible short-term goals in no time!
Mid-term financial goals for students
The mid-term goals are a little bit more intense and are usually one to three years away. While you may have fewer mid-term goals, the ones you set can have a big impact. Here are some examples of mid-term financial goals for students to get those financial juices flowing:
Are you a first-year student looking at your future summers? Want to spend your time making money and building your resume? A paid internship can be an extensive search and interview process with big payoffs.
- Search for a full-time job post-graduation
We know starting your future career is both exciting and completely overwhelming. This is a solid mid-term goal with actionable steps to help you get a full-time job without losing it.
- Pay off student loan debt and other debt
Depending on your financial situation, working toward a debt-free future could be a mid-term or long-term goal. Regardless, paying off debt is a great way to build credit and set yourself up for future financial success.
Long-term financial goals for students
Here are the “big kid goals”. Long-term financial goals are typically four or more years away; they take a significant amount of time, and you work towards them throughout your career. Here are some great examples of long-term financial goals for students:
- Build credit – Building credit is a lifelong pastime that can help you achieve all your personal and financial goals. In college, you may need to build credit without a credit card. College graduates may have other inventive ways of building credit.
- Save for retirement – Long beach walks, grandkids, traveling where you’d like; retirement will be tons of fun, but you've got to save to get there. This is the pure definition of a long-term goal, and (due to compounding interest and the nature of investment portfolios) it can start now.
- Buy a home – Home ownership is a common dream that signifies financial stability and personal investment. And it costs a whole lot of money! Saving now will help you down the road.
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When picking your short, mid, and long-term goals, think about what you really need and want. Then, always build SMART goals and write down your selections.
Tools to help build your financial goals
You don't have to go it alone! Achieving your financial goals requires the right tools, platforms, and support. Here are some stellar tools to look into and grow your financial literacy and stability:
- Budgeting tools – Saving is impossible without carefully monitoring your spending habits. Make this simple by downloading an easy-to-use tool like the Kora app that tracks spending, sets budgeting notifications, and more.
- Investment platforms – Building financial stability isn't just about saving. A top investment platform multiplies your saved funds (talk about a life hack).
- Credit-building tools – That's right, there are tools you can leverage to grow your credit. Be careful to only work with reputable companies that the FDIC backs.
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There are plenty of tools and companies that are ready to be your wealth-building partner. Look for companies that prioritize helping college students; you'll be on the fast track to financial liberty in no time!
Looking to build your credit history now? Kora can help
Alright, we've thrown a lot at you. There are SMART goals, different financial goal types, and tools to help you along the way. Looking to start? Building your credit now is simple with KoraCash. Here's how it works:
- Apply for KoraCash
- Get cash quickly (up to $3,000)
- Start repayment to help build your credit score
Pay off throughout college to build a strong history for when you graduate. This classic way of building credit is designed to help college students succeed and reach their goals.
Learn more today!
FAQ
- What are financial goals for college students?
- Financial goals for college students are short-term, medium-term, and long-term personal finance objectives aimed at setting students up for financial success. Examples include budgeting, saving for emergencies, paying off student loans, and building credit.
- What is the SMART goal-setting method for financial goals?
- The SMART goal-setting method is a system for setting Specific, Measurable, Achievable, Realistic, and Time-based financial goals. This approach ensures that students create goals that are well-defined, trackable, and attainable within a specific time frame.
- What are some examples of short-term financial goals for college students?
- Short-term financial goals for college students include tracking spending, starting a side hustle or part-time job, budgeting for current wants or needs, and establishing an emergency fund.
- What are some examples of medium-term financial goals for college students?
- Medium-term financial goals for college students include finding a paid internship, searching for a full-time job post-graduation, and paying off student loan debt and other debt.
- What are some examples of long-term financial goals for college students?
- Long-term financial goals for college students include building credit, saving for retirement, and buying a home.
- What tools can help college students achieve their financial goals?
- Tools that can help college students achieve their financial goals include budgeting tools like the Kora app, investment platforms, and credit-building tools from reputable companies backed by the FDIC.
- How can college students build their credit history with KoraCash?
- College students can build their credit history with KoraCash by applying for a loan, receiving cash quickly (up to $3,000), starting repayment to help build their credit score, and paying off the loan throughout college to establish a strong credit history for when they graduate.