If you’re a college student, chances are you’ve felt stressed about money at some point. Whether it’s worrying about student loans, stretching your paycheck to cover rent, or just figuring out how to pay for groceries and gas, financial stress can feel overwhelming. And you’re not alone—studies show financial stress is one of the top challenges college students face. The good news? You don’t have to figure it all out by yourself. Financial counseling, something many students don’t even realize their campus offers, can be a game-changer. A study by Dr. Sonya Britt Lutter and colleagues examined the impact financial stress has on college students and the role of counseling services in addressing this issue.1 They found that not only is financial stress widespread, but seeking help through counseling reduces that stress and improves money management skills over time. In other words, talking to someone who understands both the emotional and practical side of money can give students the tools and confidence to stop feeling like they’re drowning.
Here’s something important Dr. Britt Lutter and her colleagues discovered: financial stress isn’t always about having too little money. It’s also about how capable students feel when facing financial challenges.1 Two students might both have $50 in their bank account, but one could feel calm because they have a budget and a plan, while the other could feel panicked because they don’t know how they’ll cover their next expense. Stress is tied to confidence, habits, and mindset as much as it is to dollars and cents. And those worries don’t just stay in your wallet—they spill over into other areas of life. Financial stress can disrupt your ability to focus in class, damage your mental health, and strain your relationships with roommates, partners, or family. It’s not just about money; it’s about how money touches every other part of your life.
So how does financial counseling help? For starters, it gives students practical tools, such as creating a realistic budget, setting up a financial plan, and understanding what living within their means might look like as a student. It provides a safe space to talk openly about money, something many of us grew up avoiding. According to Britt Lutter and colleagues, students who went through financial counseling not only felt less stressed but also became more confident in their ability to handle money long-term.1 That confidence, often called financial self-efficacy, helps reduce stress not just now but in future financial challenges too. This builds on what another group of scholars, Dr. Soyeon Shim and colleagues, found in their research with first-year college students. They found that financial habits come from “socialization,” which are the lessons you get from parents, work, and school.2 If you grew up in a family that budgeted carefully and talked openly about money, you’re probably entering college with some helpful habits already. But if your family avoided money talks or only argued about it, you might feel less equipped. That’s where financial counseling comes in. It fills in those gaps and helps students build a healthier financial foundation for themselves.1
Let’s put this in real-life terms. Imagine a college freshman who overspent during their first semester and maxed out their credit card. They feel embarrassed and start ignoring the bills. Without help, that situation can snowball into late fees, bad credit, and severe stress. Meeting with a financial counselor could help that student make a realistic repayment plan, learn strategies to avoid overspending, and (maybe most importantly) relieve the shame of facing it alone. Or let’s think about a senior stressing over student loans. Every time graduation is mentioned, they feel dread instead of excitement. They know the bills are coming, but they have no idea what repayment will look like or how they’ll afford it on an entry-level salary. A counselor can walk them through loan options, explain repayment plans, and show them they have choices. That kind of guidance can transform fear into clarity.
These scenarios are common, but students often hesitate to ask for help. They think their money problems aren’t big enough or that they should already know how to handle them. Dr. Britt Lutter and her colleagues found that financial stress is widespread, and counseling services exist because so many students need support.1 Normalizing these conversations could make a huge difference. Nobody expects you to master American history or physical science without instruction, so why should money be any different? Financial counseling isn’t about someone telling you what you can or can’t spend. It’s about helping you gain the skills and confidence to make better choices on your own. As students develop financial literacy and self-efficacy, they not only feel less stressed now but also set themselves up for future success. Emerging adulthood is a time when financial habits tend to stick…whether they’re healthy or not. By taking advantage of resources now, students can create a stronger foundation for their future, one that makes money feel like a tool rather than a constant source of stress.
Takeaways
- Don’t ignore the stress. Financial worries are common, but if they’re keeping you up at night or distracting you from school, that’s a sign to get help.
- Seek out support. Most campuses offer financial counseling, often at no cost. Even one session can make a huge difference.
- Build your confidence. Counseling helps boost financial self-efficacy—the belief that you can handle money. That confidence carries into your future.
- Learn early, stress less later. The money habits you build in college (budgeting, saving, managing debt) set the tone for years to come.
- Start the conversation. Talking about money with a counselor, friend, or family member reduces shame and opens the door to solutions.
References:
1Britt, S. L., Canale, A., Fernatt, F., Stutz, K., & Tibbetts, R. (2015). Financial stress and financial counseling: Helping college students. Journal of Financial Counseling and Planning, 26(2), 172–186. https://doi.org/10.1891/1052-3073.26.2.172
2Shim, S., Barber, B. L., Card, N. A., Xiao, J. J., & Serido, J. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39(12), 1457–1470. https://doi.org/10.1007/s10964-009-9432-x