Break The Cycle Of Being Broke

Did you know that black college students often face unique financial hurdles compared to their white peers? From higher levels of student loan debt to fewer merit-based scholarships and limited family support, the journey to financial stability can feel like an uphill battle. But here’s the good news: taking proactive steps to manage your finances early on can pave the way for a brighter future. In this guide, we’ll explore the top 10 tips for black college students to achieve healthy finances, empowering you to overcome obstacles and thrive both during and after college.

• Did you know 86.6% of Black college students take out federal loans to attend four-year colleges, compared to just 59.9% of white students.
• On average, a Black graduate from a four-year college has $7,400 more in student debt than their white peers

Why is being financially unhealthy in college an issue?

Being financially unhealthy in college can pose significant challenges for students of all backgrounds. Still, it can be especially problematic for black students due to a variety of systemic and socioeconomic factors. Here’s why? Wealth and Income Disparities, Higher Student Loan Debt, Limited Family Support: Wealth Gap and Intergenerational Wealth, Employment and Career Opportunities, Health and Well-Being, Impact on Academic Success

Why are black students so financially unhealthy?

There are several reasons that black college students and black people as a whole are financially unhealthy. Some of those reasons are out of our control, and then there are those things that are within our control. The only thing that we can do is what is in our control, but we’ll talk about both below, and then we will get into what you can do about it later.

• The racial wealth gap
• Higher student loan debt
• Limited family support
• Employment and wages
• Health and wellness
• External responsibilities

10 Best Tips for Being Financially Unhealthy

Tip 1: Prioritize Financial Literacy

It’s so important to understand personal finance. This is one way to break away from not managing your money, creating debt, and being unprepared for unexpected situations that come up. Prioritizing financial literacy is showing up for yourself and starting to change your situation. Small changes start adding up and you will start to see big changes in other areas. It’s unfortunate but we live in a world of systemic economic barriers. The faster you understand and learn about money the faster you can fight off the barriers.  How can you fight off the barriers? By breaking cycles and being able to better navigate your finances.

Tip 2: Maximize Scholarships & Financial Aid

Maximizing scholarship money and financial aid preferably grants and money you don’t have to pay back is helpful in keeping you out of debt. The goal is to go to school for the least amount of money from your pocket now and later. There is money just floating around begging to be used. It’s terrible that people don’t take advantage of scholarships and financial aid because they don’t know where to start, where to look, and let’s face it, sometimes just downright lazy. Don’t be that person, stick around, get some guidance, resources, and then do the work.

Tip 3: Look Into Alternative Funding Options

Other than the usual funding options for school such as student loans and scholarships and grants that we love, you can always look into work study programs, employee assistance programs, crowd funding, community foundations and income share agreements. Most of these we’ve heard of, a few we have not, but we will certainly be talking about them on this blog.

Tip 4: Budgeting Basics

Because as black students the system is already stacked against you when it comes to money, budgeting gives you a blueprint of how to make your money work for you while still being able to live your life. This helps you with prioritizing your expenses, avoiding debt, saving for emergencies, and building for your long term plans.

Tip 5: Minimize Student Loan Debt or Get Rid Of It Altogether

Of course I understand that sometimes getting a student loan has to happen and isn’t avoidable. You might reach this post too late to do anything different or you might be in a crunch and have no other option. First thing you want to make sure you do is ONLY GET WHAT YOU NEED FOR SCHOOL! Please don’t take out extra money to live on. Seems fun and useful now, but it won’t be when it’s time to pay it back. Of course, get as many scholarships and grants as possible, work study programs, employee assistance programs, work extra and other options.

Tip 6: Plan For Life After Graduation

Having a plan for after graduation is like having a plan to be great with your money. Planning ahead will help you with clear goals, getting internships and job opportunities that will be best for you. It can help you network and make sure that you acquire the skills you need to take care of yourself for a job and just financially.

Tip 7: Invest In Personal Development

Investing in personal development is important to help you with skills and confidence to navigate your finances and other areas in your life along with helping you achieve success. Personal development helps to increase employability, helps you advocate for yourself and it helps you create better opportunities for advancement for yourself.

Tip 8: Find Balance

Finding the balance you need is important for your physical, mental, and emotional well being. Make sure you are prioritizing yourself, your relationships, your academics and your personal growth are most important. I know this is a financial blog, but without the things I named above, the money won’t matter. Maximize your potential and your success holistically. I am here to help you do that!

Tip 9: Explore Opportunites For Fun & Adventure

Creating opportunities for fun and adventure is a good way to relieve stress. You have to get out and have some fun. Laughter is so good for us, make sure you are doing fun things to take care of the side of you that needs relaxation and to let your hair down. Having fun will help you build confidence,strengthen relationships with others, helping you with personal growth, and last but not least helping you find joy and fulfillment in your life.

Conclusion

As I wrap up this journey through the top 10 tips for healthy finances tailored specifically for Black college students, I hope you’ve found these tips valuable and empowering. Remember, financial well-being is not just about making ends meet—it’s about building a foundation for a successful future and breaking down systemic barriers.

To further support you on your financial journey, I’ve created a FREE checklist outlining a month-to-month blueprint to financial success as a Black college student. Whether you’re navigating student loans, budgeting for expenses, or planning for the future, this checklist will serve as your roadmap to financial empowerment.

Ready to take control of your finances and pave the way to success? Click the link below to claim your free checklist and start your journey towards financial freedom today!

[Get Your Free Month-to-Month Financial Blueprint Checklist Now!]

Thank you for joining me in your prioritizing financial literacy. Together, let’s rewrite the narrative and build a brighter financial future. Until next time, just remember that how you manage your money matters and only you can design your financial future.