Financial Wellness at CMU

New to managing your own finances? Nearing graduation with lingering questions about your financial future? Want to learn more but don’t know where to start?

We are here to help! From loans and budgeting to credit and saving for your future, Carnegie Mellon is committed to your financial wellness and future success. We encourage you to explore and take advantage of the resources available to you.

Questions about financial literacy and wellness can be directed to finwell@andrew.jishuoba.com.

Borrowing

Loans are an important part of financing an education for many students. If you borrow a student loan be sure to educate yourself about the process to set yourself up for success upon repayment!

Tips for responsible borrowing:

Know your interest rate and repayment terms.

For federal loans, you can predict what your monthly loan payment will look like with Federal Student Aid’s Loan Simulator Tool.

Keep your contact info up to date.

Ensuring that your loan servicer can reach you is your responsibility.

Understand delinquency and default.

Your loan is considered delinquent if you miss a payment. If your loan becomes 90 days delinquent, your credit will be affected. If you fall behind, contact your loan servicer immediately to see what options are available to you. Once your loan becomes 270 days delinquent, you enter default and your debt will be assigned to a collection agency — this will have significant negative impact on your credit.

Take advantage of CMU resources.

All students can contact their HUB liaison with questions or concerns about their student loans.

Budgeting

Managing your money in college can be challenging, especially if you are living on your own for the first time. No matter your financial situation, budgeting is crucial for taking control of your financial future and building responsible habits.

Budgeting tips:

Start simple.

You don’t have to reinvent the wheel – budgeting templates and apps are everywhere and can greatly aid you in getting started!

Be honest about wants versus needs.

When building a budget, make sure to prioritize essential expenses like rent, utilities, groceries and insurance before budgeting for wants such as subscription services, entertainment and dining out.

Track your spending and be flexible.

Revisit your budget each month and compare your expected spending to your actual spending. You may find that you need to sacrifice and spend less on non-essential expenses.

Pay yourself first!

Build savings into your budget. Many experts recommend using the 50/30/20 rule, where each month you allot 50% of your income for needs, 30% for wants and 20% for savings.

Try it yourself!

Use a free budgeting template to get started.

Saving

Paying your bills is important, but don’t forget to pay yourself! Become a disciplined saver by building a savings component into your budget. No matter how small the amount, this will help set you up for future financial success.

Saving tips:

Open a high-yield savings account for stable growth and for emergencies.

A high-yield savings account is a safe and steady way to grow your savings — the bank pays interest to you based on the funds in your account and the interest rate offered. This also helps you account for unexpected one-time expenses by consistently saving for them each month.

Set up a recurring savings deposit.

Setting up a recurring transaction from checking into savings is a great way to stay on track with your goals.

It’s never too early to save for retirement.

Look into opening a Roth IRA, an investment account that allows you to contribute after-tax dollars toward retirement. These funds grow tax-free and can be withdrawn without tax or penalty as you near retirement. The earlier you start saving, the more time your funds have to grow through compound interest.

Utilize your employer’s retirement benefits.

After graduation, always take your retirement package into consideration when deciding on a job, and be sure to utilize it to the fullest once employed!

Credit

Your credit score is a prediction of your creditworthiness. This score is calculated based on a variety of financial factors, such as payment history, debt, loans and any delinquencies or defaults.

Good credit is the most important factor in obtaining favorable terms for loans and credit cards, and your credit can even be taken into consideration by potential employers and landlords. It is important to know your credit score and take active steps to improve and maintain your credit over time.

If you have no credit history, or are new to credit cards, here are some tips to build credit over time:

Become an authorized user on an existing credit card.

If you have a family member with a history of solid credit, ask them to make you an authorized user on their credit card. This adds their history of good credit and on-time payments to your own credit history. Even if you don’t use the card, you will benefit from their responsible credit habits and likely see your score improve.

Open an introductory or secured credit card.

Some banks and credit unions offer card options to students and others looking to build credit safely. These credit cards have low credit limits and may require a cash deposit, but they are often a useful tool in establishing good credit.

Do not overspend.

If you are new to using a credit card, it's best to avoid large purchases that you will not be able to pay off by your balance-due date. Be sure to keep track of your credit limit and stay below it — it's recommended that you do not exceed 30% of your total available credit for each payment period.

Increase and maintain your credit by:

Paying bills on time and in full.

If you don’t pay your entire statement by the due date, you will be charged interest on the balance. Late payments can also negatively impact your credit score.

Keeping credit accounts open.

Part of establishing good credit is displaying a long history of responsible borrowing. Avoid closing lines of credit when possible, particularly your oldest one.

Checking your credit report.

This is the easiest way to know where you stand, and is also an effective method of catching identity theft early. As a consumer you are entitled to free credit reports.

Upcoming Events

Mastering Your Paycheck: A Seminar on Budgeting & Financial Basics

Do you fully understand your paycheck? Are you making the most of your income? Join us for an insightful seminar with Tiffany Benigni, Certified Financial Planner™, where we break down the essentials of managing your money effectively.

Understanding Your Paycheck– Breaking down deductions, taxes, and take-home pay
Budgeting Fundamentals– Simple rules of thumb to manage spending
Creating & Managing a Budget– Practical strategies to track income and expenses
Smart Money Habits– Tips for saving, reducing debt and reaching financial goals

This seminar is perfect for students looking to take control of their finances and build a strong financial foundation. Take the first step toward financial confidence — reserve your spot today.

About the Speaker: Tiffany Benigni, CFP

With over 20 years of experience in financial planning, Tiffany has helped individuals take control of their finances and build lasting wealth. As an Adjunct Professor at Carnegie Mellon University, she teaches The Art of Financial Literacy, equipping students with essential money management skills. A passionate advocate for personal financial wellness, Tiffany is dedicated to making financial literacy accessible to all.

Disclaimer: CMU staff are unable to provide direct investment or tax advice. Please contact a financial professional to discuss any specific investment or tax concerns. Additionally, this page includes links to third-party sites, which are provided for informational use only. The inclusion of these links does not constitute any endorsement of or opinion on any financial product or topic by CMU.