How to Avoid Expensive First-Year College Student Mistakes

Between adjusting to a new environment and trying to stay on top of classes and everything else college throws their way, some students make choices that cost them more than expected. They don’t always make major errors — often, it’s small oversights or assumptions that add up. Getting ahead of these problems early can help students avoid long-term financial and academic setbacks.

There’s no single rulebook, but there are patterns stuck on repeat. Being aware of them now can help reduce stress later. Below are five common money mistakes to avoid in college that cost students money, time or both — and what you can do to steer clear of them. (Because trust me, you’re going to want to!)

How You Can Overlook the Real Cost of College

Every student deals with the cost of books, course supplies, software, daily transport, personal items and meal plans. These costs crank up fast if you don’t have a plan.

America’s total student loan debt has reached a staggering $1.777 trillion as of 2025, with the average federal student loan balance standing at $38,375 per borrower. This number continues to grow as students take on more debt for both tuition and living expenses.

Learn more: Why is College So Expensive in the United States?

Not Understanding the Actual Costs

It’s important to go beyond cost-of-attendance calculators by doing things like: 

• Track spending during the first few weeks of school. 
• Compare actual expenses against expectations. 
• Adjust monthly budgets from there. 
• Don’t buy new textbooks without checking for cheaper alternatives.

Digital study guides and open-source materials offer strong alternatives. Many instructors are flexible about where the materials come from, as long as the content is correct. Avoid impulse tech purchases unless they are required for class, because these decisions can shape financial stress levels for the rest of the year.

Learn more about hidden fees that might jump out at you.

Underusing Available Support

Some students try to do everything alone. While independence matters, ignoring support options often leads to poor results, such as paying to repeat classes or taking summer credits to catch up.

Academic support doesn’t always look like formal tutoring. Peer-generated tools, shared lecture notes, and well-organized study material can make a difference. Students use these to fill knowledge gaps or prepare for finals when lectures don’t stick.

Platforms like Studocu offer thousands of real student-uploaded study notes, summaries and exam prep files for a wide range of subjects. These resources often include past tests, flashcards and topic breakdowns that save hours of frustration. Using a mix of materials helps students find the best approach for them. Relying only on official slides or one professor’s teaching style can create blind spots.

Ignoring Scholarships and Grants

Plenty of students give up on applying for financial aid. Some think they won’t qualify, and others believe the process takes too long or isn’t worth the effort.

The truth is that new scholarships open throughout the year. Some are based on GPA, but others depend on community involvement, field of study or even unique hobbies. Set a recurring reminder once a month to check your college’s financial aid page and trusted third-party sites and track deadlines on a calendar or planner.

College majors with the highest shares of federal grant money include health (18.4%), humanities (16.3%) and business/management (15.9%). Meanwhile, over 66% of students with above-average SAT and ACT scores receive private scholarships, and STEM students are 5% more likely to receive scholarships than non-STEM students.

Maintaining academic performance opens doors to more awards. Using study help resources increases confidence and performance, improving merit-based funding eligibility. Even small scholarships can add up to hundreds of dollars saved per term.

Mismanaging Credit and Loans

Credit card companies often target first-year students. While having a card for emergencies might feel helpful, it’s easy to overuse it without a clear repayment plan. Interest rates can spiral if balances aren’t paid in full.

A 2024 national survey revealed that 59% of college students have considered dropping out due to financial stress, with nearly 80% reporting that finances negatively impact their mental health. This financial pressure often leads to increased credit card usage and debt.

Before signing up, compare offers from banks and credit unions. Read the terms carefully. Avoid cards with high fees or low limits. Use student-focused financial literacy tools — many colleges offer them for free. These teach interest calculations, budgeting and long-term planning.

Federal student loans come with better terms than most private options. Use them wisely. Take out only what you need. Pay attention to how much you borrow each semester, not just the total over four years. That awareness sets the tone for manageable repayments after graduation.

Learn more about ways to get college paid for and how to reduce college costs.

Skipping Course Planning and Academic Advising

Assuming you can figure out course planning solo is risky. Degree programs come with required credits and prerequisites. Going it alone can leave students short when they’re ready to graduate.

Schedule a meeting with an advisor each semester. Ask about course sequences, when they’re offered, and how choices impact future semesters. Some classes are only available once a year. Missing one can delay graduation by a full term, which adds more tuition and housing costs.

Advisors can also help identify minors, electives or certificates that match core classes. This saves time and strengthens transcripts. Degree audits, which show which credits still need to be completed, are another tool worth reviewing each term.

Missing Out on On-Campus Jobs and Low-Commitment Income Options

Many students overlook easy ways to bring in money while studying. On-campus jobs are designed with student schedules in mind and often offer more flexibility than off-campus alternatives. Positions in the library, student union, labs or academic departments usually don’t require long hours but provide steady income and a built-in safety net if academic priorities shift. Studies show that students who complete internships are 32% more likely to receive job offers after graduation, and those who land full-time positions can expect starting salaries $15,000 higher than non-interns.

Work-study programs are also available to those who qualify through financial aid applications. These programs don’t reduce tuition directly but help cover ongoing costs like food, transport, or supplies. Earning a small, predictable income helps reduce how much students rely on credit or loans.

Stay Focused and Save More

Financial and academic planning doesn’t have to be overwhelming. Students who take small steps, check budgets, apply for aid and use smart study tools can avoid many big, expensive mistakes that catch others off guard.

Use what’s already available. Speak with advisors. Make use of shared study platforms and course materials. Keep looking for ways to cut costs without cutting corners on quality or performance. Small changes now can lead to less debt, better results, and more flexibility later on.

Learn more: Ways a Tuition Payment Plan Can Help You

FAQs

What is the 50/30/20 rule for college students?

The 50/30/20 rule is a budgeting guideline that helps students manage their money by dividing their income into three categories:

• 50% needs: Rent, groceries, transportation, tuition, and essential bills.
• 30% wants: Eating out, entertainment, hobbies, and non-essentials.
• 20% savings and debt repayment: Emergency fund, student loan payments, or saving for future expenses.

While originally designed for working adults, it can be adapted for students living on part-time income or financial aid.

What are the most common mistakes that freshmen make during their first year at college?

First-year college students usually catch themselves making a variety of rite-of-passage mistakes, such as falling prey to poor time and money management, skipping class, overspending, not asking for help, overcommitting to friends or clubs and organizations and neglecting self-care.

What are the biggest mistakes college students make?

College students often take on too much student loan debt (which they find themselves paying for years after they graduate) — this is one of the biggest monetary mistakes. They may also choose a major without researching job prospects or personal fit, fail to build relationships with professors or network in their field, not use campus resources and skip internships or work experiences that will bolster their resumes. They may also fail to track their academic progress.