With school in session, many young adults will embark on the exciting journey of college life. Today, the average American student leaves college with more than $37,000 in debt, including student loans. With the total U.S. student debt sitting at $1.56 trillion, according to data from the Federal Reserve, the young adults in your life may face more financial challenges in their pursuit of higher education than past generations.

Here are five money tips for college students:

  1. Create a budget -- Creating a budget and sticking to it allows you to control where your money goes instead of wondering where it went, regardless of your current financial situation. A budget is an effective tool to track and organize the money you make and spend. This guide from Federal Student Aid can be used as a starting point in building a budget as a student.
     
  2. Appy for FAFSA assistance -- Make a note on your calendar to fill out the Free Application for Federal Student Aid (FAFSA) before starting college and every year while in school. This form determines eligibility for federal aid for both current and prospective college students. It costs nothing to apply but can be a great help in paying for college.
     
  3. Explore scholarship options -- The FAFSA isn't the only resource available to help pay for college. Scholarships are a form of financial aid that don't have to be repaid! Scholarship may be offered based on a variety of criteria, including academic merit, athletic skill, financial need and inclusion/diversity. Scholarships may differ drastically in terms of amount. Utilize your college's website or call their financial aid office to learn about the various scholarship they offer and apply for those for which you qualify.

    If you find yourself in the market for a private student loan, there are options available. See student loan options available at Iowa State Bank.
     
  4. Be discount-obsessed -- Expenses can add up faster than most young adults would expect. By taking advantage of free and discounted on-campus events and using campus fitness centers, college students can save themselves from spending too much on expensive entertainment. Many companies may also have student discounts. Shopping for sales, price match options and taking advantage of thrift stores can stretch your dollars further.
     
  5. Explore classes on financial literacy -- Classes may be the best way for young adults to learn finance skills. Your college or local community may offer free or low-cost classes to start your education on the subject. Students may also sign up for a free accounts at CashCourse.org, a project of the National Foundation for Financial Education. CashCourse provides articles and videos on the ins and outs of budgeting, financial aid and loans, filing taxes and paying rent.

This information is provided as a courtesy by Iowa State Bank, in partnership with the Iowa Bankers Association.