After the chunk of change dropped on tuition, room and board, meal plans and dorm essentials, students, on average, blow through an additional $5,000 on university apparel, Taco Tuesday with friends, local activities, laundry, gas money and the list goes on and on. Students and parents often neglect to factor in the extra college cost once the necessities are paid for.

Achieving financial wellness should be the goal of every Central Connecticut Blue Devil. Most students attend college in the hopes of learning economic stability that transcends their education career. Actively practicing good monetary routines while attending a university can facilitate healthy habits even after graduation.

1. Open a Student Checking Account:

Students have a banking advantage since they are welcomed with a lower threshold when opening a new account at various banks. At KeyBank, students have the opportunity to start banking with only $50. Other banks offer a wide range of different perks such as reimbursement of ATM surcharges or no monthly fees. According to KeyBank’s Area Retail Leader Mark Commune, parents should encourage students to talk to their preferred bank about setting up alerts regarding account activity.

2. Understand the bank’s Overdraft Policies:

Exceeding the checking account balance is the quickest way students can orchestrate a hefty deficit, but one way to counteract that is by discussing fully your bank’s overdraft procedure. Inquire if the bank has any overdraft solutions or protections, which can rectify excessive spending or prohibit spending when there is not enough money within the account. Identifying if the bank offers notifications when funds are low — with various threshold limits — along with these other overdraft policies, can be beneficial “to understand for successful management of their funds,” Commune added.

3. Credit card responsibility and usage:

Since 2009, the Credit Card Act has been effective in curbing students credit card debt, however, 70 percent of college students in 2016 still incurred a balance of $100 to $5,000 on their cards. This does not mean to stay away from credit cards altogether because having a solid credit history can lead to being approved for larger purchases like cars, homes or basic utilities.

“Having a good credit history will be important when applying for loans and mortgages after graduation,” Commune said. “Using a credit card responsibly while in college will help build a good credit history for post-college needs.”

Look for credit cards that provide cash back or reward points on purchases because it can increase students buying power. Other perks such as low-interest rates, low or no annual fees and a good grace period can alleviate some of the stress surrounding credit cards. At a minimum, students should pay their monthly payment but should opt to pay more if they can.

KeyBank offers a few student-protected starter cards such as Key Secured Credit Card®, KeyBank Latitude® Credit Card and Key2More Rewards® Credit Card.

4. Build a budget and utilize online tools to track banking activity:

A student’s budget consists of two main categories, “needs” (textbooks, groceries, dorm room cleaning supplies) and “wants” (club sports, formal events, trips). When students and parents establish set expenses, they can formulate a better comprehension of extra cash flow needed.

“When your purchases are laid out in front of you, it is easier to decide what is essential to keep in your budget,” Commune said.

One means of doing so, students can take advantage of their banks mobile and online tools, such as KeyBank’s “HelloWallet” app.

“The app is used to create a budget plan and track expenses to help you see what you’re spending your money on,” Commune stated.

5. Establishing good saving and investment patterns:

By allocating funds on a consistent basis to help save for the future, students can build savings and create a nest egg for unexpected expenses that may come crashing down. The contribution to a student’s saving account does not have to be large, in fact, a small weekly amount is more effective because it creates a better habit than random deposits of large lump sums of money. Slowly chipping at a hefty retirement or emergency fund curates healthy practices that will lead to more success in the future.

Many banks offer a financial planner to aid them when planning and budgeting their money, so student and parents do not have to take on the burden alone.

“Students can make an appointment with a personal banker at their local branch to get tips on budgeting and planning for their financial future,” Commune said. “The more you know about your personal budget, the easier it will be to save.”