College students face significant financial pressure in today’s volatile economy, driven by inflation, rising tariffs, student debt and the lingering effects of Trump-era policies. These challenges affect students nationwide and are particularly complex at the University of Denver.
“Young people don’t like to deal with financial numbers,” said Dr. Irina Khindanova, a finance professor at the University of Denver. “In a world of inflation, tariffs, student debt and economic uncertainty, strong financial literacy can make challenging conditions less stressful.”
Experts agree that early planning, smart budgeting and informed investing are key to managing financial pressures and avoiding costly mistakes. These strategies enable students to build financial confidence and prepare for their futures.
Dr. Jack Buffington, associate professor of the practice in supply chain management at the Daniels College of Business at the University of Denver, is an expert on trade and economics who was recently featured on CNN discussing the impact of Trump’s tariffs. In an interview with the Clarion, he shared insights on early career planning, emerging technologies and markets, and the essential skills students need. He also offered advice on investing and money management to help navigate rising costs, interest rates and student loans.
Early Career Planning, Critical Skills & Emerging Technologies
“Short term, tariffs are going to increase costs, but longer term, if the policies work, they could lead to more jobs here,” Buffington explained. “So, students might view their careers differently because our economy is changing. However, tariffs alone won’t create manufacturing jobs. There needs to be investment in infrastructure and education.”
This highlights an important reality: while trade policies like tariffs can cause immediate increases in living costs, their long-term success depends on broader systemic investments and economic shifts beyond the headline policies. Students should understand that true recovery and growth rely on multiple factors working together.
“Economic uncertainty creates opportunities for students with new skills. Change benefits students more than seasoned professionals. It’s an exciting time — but you have to understand what’s happening and adjust your strategy,” Dr. Buffington said.
This transition period, though challenging, favors students who adapt early. Planning ahead, especially for underclassmen, is crucial.
“If you’re a freshman or sophomore, put together a strong plan for your future now — it’s the best way to set yourself up for a great job and avoid being forced into bad decisions later,” Dr. Buffington explained. “The sooner you work through your financial and career plan, the better your choices will be. It’s just math — and the earlier you figure it out, the smarter your decisions will be. When jobs are fewer, companies need fewer people — so they look for those with better skills.”
Now it’s up to you not only to improve your skills but also to identify which ones to leverage in today’s evolving job market, especially amid the rise of AI and digital transformation.
“What employers want is critical thinking and problem-solving. It’s how to think, not what to think. “All students, whatever their major, need to know how to utilize, manage and analyze data — that’s where every industry is heading,” Dr. Buffington said. “AI is only as good as the data underneath it. Don’t just use the tools — understand the data that feeds them.”
Student Loans & Debt Management
Student loans are already a daunting subject for many, and with rising interest rates and shifting economic policies, navigating them has become even more challenging.
“Try not to take out loans if you can avoid it — you’ll unlikely see 1–2 percent rates again,” Dr. Buffington said.
Planning early is key. Whether you’re mapping out a realistic salary goal as a freshman or evaluating the cost-benefit of grad school, it’s crucial to weigh your future income against potential debt. By approaching your finances with a clear strategy, you give yourself more options and fewer regrets.
“Financial security in college lets you choose a career you love instead of one that just pays the most,” Dr. Buffington said.
Dr. Khindanova is also an expert in financial risk management and international investments and shares practical guidance on financial literacy and budgeting. She stresses that developing strong budgeting skills early on is essential for students to confidently navigate their finances amid today’s economic uncertainties.
Budgeting, Saving & Smart Spending Habits
Saving and budgeting — nothing new, but now twice as effective! Dr. Khindanova outlines four key steps every student should follow:
- Getting Started with Budgeting
Begin by tracking and categorizing your expenses into necessary and discretionary groups. This makes budgeting manageable, even if you’re not comfortable with numbers.
- Building an emergency fund
Once essentials are covered, aim to save about 10% of your income in an emergency fund to protect yourself from unexpected expenses and financial disruptions.
- Smart Spending Habits
Focus on balancing saving and spending since small choices add up quickly. Consider opting for private-label brands. Fresh foods are often cheaper and healthier than processed options. Also, skip services like Uber Eats, as convenience fees can reduce financial flexibility.
- Discipline & Consistency
Stick to your budget and savings plan consistently. Even small, regular contributions build financial resilience and long-term security.
Investing Basics & Avoiding Common Pitfalls
Dr. Buffington offered several tips for avoiding common investing errors young people tend to make.
Patience is key when it comes to investing among young people. Avoiding impulsive decisions is crucial. One common mistake young people make is not investing early enough. As Dr. Buffington puts it: “Don’t play the market. You don’t have enough money or skill. Just find an index fund with low loads and contribute monthly.” Day trading and crypto can be distractions. Your main priority should be building your career and network.
When investing in index funds, you trust the fund manager to make decisions, so trying to time the market perfectly is unnecessary. The best approach is to “invest your money and then forget about it for decades. Don’t panic every time the market dips.” Those who sell low and buy high often end up losing out. Instead, let your investment sit and compound over time.
Making investing a regular habit is key. Even small amounts like $50 or $100 each month can add up significantly if you stay consistent. Also, be cautious of investment apps targeting young people. They often charge high fees. Focus on low-cost, stable investments for better long-term growth.
By developing financial skills early and making informed choices, students can take control of their futures despite economic uncertainty. With the right strategies, confidence grows and so does long-term financial freedom.
