Before turning 18, I wish I had known these 5 personal finance tips.

In my first year of college, I realized the importance of managing my finances effectively. Although I had been saving since childhood, I found that college presented a new set of expenses that required careful budgeting.

In my third year of college, I have acquired various techniques for achieving financial stability and maximizing my resources. If I could go back in time, I would share these insights with my younger self.

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Start building a credit history early

When it comes to making a significant purchase with a loan, having a robust credit history is crucial.

Mary Carlson, a certified financial planner and president of Financial Behavioral Keynote Group, suggests beginning with small borrowing amounts and developing good credit habits gradually. For instance, using a credit card for spending is typically simpler and quicker to repay than obtaining a loan, yet still contributes to credit building.

As a college student, you can choose from various student credit cards, such as the Capital One SavorOne Student Cash Rewards Credit Card or the Discover it® Student Cash Back card. The Capital One SavorOne Student Cash Rewards Credit Card offers 3% cash back on dining, entertainment, popular streaming services, grocery stores and more, while the Discover it Student Cash Back card allows you to earn 5% cash back on rotating categories and 1% on all other purchases. Both cards have no annual fees and no foreign transaction fees, making them ideal for studying abroad. By using these cards responsibly, you can improve your credit score over time.

By becoming an authorized user on a parent or guardian's credit card, you can establish credit before turning 18.

An authorized user can make charges on someone else's credit card and benefit from their credit and good financial habits without making a purchase.

If the primary cardholder has good credit, becoming an authorized user can be advantageous, but it can also harm your credit score if the primary cardholder has poor payment habits.

Keep extra cash in a high-yield savings account

As I started accumulating savings through my job, my initial impulse was to put my funds into a traditional savings account at a physical bank. Nevertheless, these accounts typically provide a low interest rate of 0.01% APY, resulting in only a few cents in interest earned annually.

It's more advantageous to invest savings in a high-yield savings account where the money can grow with a higher annual percentage yield (APY). Nowadays, it's common to find APYs of 5%. For instance, if you deposit $1,000 into a high-yield savings account with a 5% APY, you could earn approximately $50 in interest annually.

High-yield savings accounts are a great option for short-term savings because the money is easily accessible, unlike investing in bonds, the stock market, or retirement accounts, which are better suited for savings you won't need in the near future.

The Marcus by Goldman Sachs High-Yield Online Savings Account is a high-yield savings account with no fees or minimum deposit requirement. To learn more about our top high-yield savings accounts, please read on.

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Budget with the 50-30-20 rule

To make my budgeting goals flexible as my income grows, I discovered that it's better to base them on percentages rather than fixed amounts when starting to budget.

The 50-30-20 rule is a widely used budgeting technique that recommends allocating 50% of your income towards necessities, 30% towards desires, and 20% towards savings. Necessities include basic requirements such as housing, utilities, fuel, and groceries, while desires are the enjoyable things, such as dining out or purchasing a new book. Savings should be reserved for both long-term objectives, such as purchasing your first home, and short-term safety nets, such as an emergency fund for unforeseen expenses.

The 50-30-20 rule is not a perfect guide, but it offers a flexible structure to manage spending in college. It's especially useful since income can fluctuate based on internships and part-time jobs. Additionally, if you earn more money during the summer, you can adjust the percentages to increase your savings for the school year.

Use a budgeting app

Balancing academic, extracurricular and work commitments while adhering to a budget can be challenging.

Many budgeting apps can automatically link to your bank and credit card accounts to track your income and expenses.

You can personalize your financial goal visualization and create budgets for each category or group using Monarch.

Goodbuget offers a free version and a user-friendly interface, but you need to manually input purchases and transactions if you don't have a premium plan.

Find reliable sources for financial advice

Financial advice is abundant, with opinions from various sources such as social media strangers, family, and friends. However, not all advice is reliable, and it's crucial to be cautious about where you obtain your information. While someone may appear to have a lavish lifestyle on TikTok, it does not necessarily mean they are financially proficient.

I prioritize finding reliable, impartial sources with industry expertise, such as certified financial advisors, professors, and reputable publications. After identifying trustworthy experts, I stay updated by subscribing to their newsletters or alerts.

Meet our experts

We interviewed Mary Carlson, a certified financial planner, president of Financial Behavioral Keynote Group, and adjunct professor at the University of Georgia, for this story at CNBC Select.

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To learn about the rates and fees for the Discover it Student Cash Back, please visit this link.