How to use fintech apps for college
Written by Camilla Andersson
Reviewed by Chris Conway, Director of Financial Education Initiatives and Repayment Management
Chances are you have a lot of apps on your phone, but how many are focused on personal finance?
More to the point, why might you consider having such an app (or two)? Well, by using financial apps for college, you may be able to save money and, as a result, gain more control over your finances.
Here’s what you need to know.
What are fintech apps used for?
The term fintech refers to digital technology for financial products and services. This can range from online banking to financial investments to cryptocurrency, and it’s more egalitarian than you might think.
Fintech enables users to manage banking online, for instance, and it has made it easier to gain insight to overall spending and finances. But fintech is much more than online banking and digital wallets. By using apps wisely, you can gain knowledge to make smarter financial decisions too.
In 2022, it was reported that about 80% of Americans used fintech products to manage their money, and over half used them every day. The average consumer that year used at least three apps for fintech overall. While it’s likely that you’re already using some of these apps, finding new ones to meet your individual needs may help improve your financial literacy. This refers to your knowledge and understanding of how to earn, manage and save money.
When you gain a better understanding of your finances, you’ll also gain the opportunity to learn more control. This can help you cut costs, invest money wisely, create budgets and more.
Common types of apps for fintech
These are some of the most common categories of apps in finance:
- Money management apps: With these apps, you can track and organize your expenses and monitor different financial accounts in the same place. Some are made specifically for shared expenses.
- Budgeting apps: Apps for budgets fall under the category of money management apps because they offer tools that can help you reach your saving and spending goals. Some, for example, let you create virtual “envelopes” for each spending category. Many apps for budgeting also have other money management tools to explore.
- Investment apps: Investing apps help you make and manage financial investments. Investing apps in which you can get started with small amounts of money are called micro-investing.
- Bank apps: With these apps, you can access your bank accounts on the go. For example, you can transfer funds, make deposits or pay off your credit card.
- Credit monitoring: Apps by credit monitoring companies enable you to keep a close eye on your credit score, as well as any unexpected changes to your credit history, which could indicate that someone has gained access to your accounts or information.
- Digital wallets and peer-to-peer (P2P) payment apps: Digital wallets store your payment information so that you can pay merchants using your phone. P2P apps help you send money directly to friends or other individuals. Some apps enable you to do both.
How can college students benefit from using apps for finance?
College students can use many apps for finance, but there are some features that are especially useful for students. Likewise, there are a few reasons that college students especially can benefit from these apps. For example, college students may:
- Have less disposable income, making budgeting more important
- Have roommates or dependents, so they might benefit from apps with features to track or budget for shared expenses
- Want to improve their financial literacy, and apps may teach them new, useful skills
If you’d like to have better control over your finances, you can start by finding an app with which you can track your expenses, and ideally one that allows you to track your income and account balances as well.
Once you have a good understanding of your finances, the next step is to create a budget. When you do this, determine if you can start saving and investing some of your money.
If you have limited experience and are less willing to accept risk but want to explore apps for investing, look for those that specialize in diversified or managed portfolios instead of trading apps or cryptocurrency apps. Some investment apps offer robo-advisors, which is software that makes investments on your behalf based on algorithms and data.
How apps for college can help you save money
As mentioned, one way to use apps for college is to potentially save money. Another might be to search for opportunities. Some students use apps, for instance, to search and apply for scholarships.
Student loan apps also exist to help individuals manage their loans by updating their information and setting up payments, such as Debt Payoff Assistant or EveryDollar.
Other apps for saving money as a college student include those that locate discounted textbooks and student discounts. One example is BookScouter. If you need to increase your income, consider finding temporary or freelance jobs through, for example, Handshake, a job app for college students.
Protecting your financial security with apps
Finance apps promise many benefits, but they can also pose security risks, just like any online activity that involves your financial information. Reduce the likelihood of phishing attacks and other security breaches by taking the following steps:
- Research apps that you download to make sure that they are legit. Use apps from the official app store on your phone. While this cannot guarantee security, it can be helpful. You can also research which company is behind a given app to ensure it’s one you trust. Not sure where to start? The U.S. Securities and Exchange Commission has tips for how to evaluate brokers and investment advisors.
- Use security software designed to monitor your device for threats. Most phones come with certain protection, but jailbreaking a phone or not updating it regularly can make it more susceptible to threats. Desktops and laptops should have antivirus software and should be regularly updated.
- Use multifactor authentication when available.
- Be aware of and avoid common phishing attempts.
No matter how careful you are, you can’t completely avoid the risk of identity theft online, since legitimate businesses can be the target of hackers who gain access to your information. This is why it’s equally important to monitor your financial information on a regular basis. Sign up for alerts from your bank for suspicious activity within your accounts, if you haven’t already. Find out how they send these alerts out, so you don’t mistake a phishing attempt for a true alert.
Also, you may want to consider using a credit monitoring company to get alerts for other unexpected changes, such as if someone opens a bank account in your name.
If you find out about suspicious activity or learn that someone has stolen your identity, follow the recommended steps at IdentityTheft.gov.
Learn finance and technology skills at University of Phoenix
If you’re looking to gain business skills, University of Phoenix has online degrees that teach career-relevant skills in a flexible format.
Apps for college are just one part of a dynamic future for the field of finance. If you want to learn more about the world of technology, discover the Bachelor of Science in Finance and Technology program.
Using apps is only one way to save money on your education. Connect with an enrollment representative to learn about how University of Phoenix could help you save money on your degree.
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ABOUT THE AUTHOR
Camilla Andersson is a writer with a degree in journalism. She has written and edited content for trade magazines, blogs, white papers and newsletters. Camilla lives in Los Angeles and is a graduate of San Francisco State University. She grew up in Sweden, where she published her first work, an op-ed in the newspaper Aftonbladet, at the age of 15.
ABOUT THE REVIEWER
As Director of Financial Education Initiatives and Repayment Management, Chris Conway works with departments across the University to provide resources that allow students to make more informed financial decisions. She is also an adjunct faculty member for the Everyday Finance and Economics course at the University, and she chairs the National Council of Higher Education Resources College Access and Success Committee. Conway is committed to helping college students make the right financial decisions that prevent future collection activity.
This article has been vetted by University of Phoenix's editorial advisory committee.
Read more about our editorial process.