Are you preparing to embark on college life? When you’re getting ready to move on campus, purchase school supplies, and get ready for your first semester, you’re likely planning how to organize your funding, whether you have family educational savings or financial student aid.
While setting up a budget and tracking your spending is important, there are helpful ways to spend less money while enjoying more value for what you get.
Set a Budget and Spend Carefully
Initially, you’ll want to set a budget based on your income and expenses. Add all your sources of income, whether it’s financial aid funding, a part-time job, side gigs, and extra money from family or friends.
Creating a budget can help you track how much income you have to work with, week to week, and each expense, including groceries, emergency savings, utility bills, rent, and other monthly expenses.
When you understand how to manage your money, you can search for the best deals and track how much you spend each day using a student-friendly checking account or savings account.
Many smartphones offer budget-tracking apps that are free or low-cost, which can help you set goals and curb overspending before it gets out of control.
Dine in More Often
Skipping the grocery store and dining out with friends after school is often tempting. When you dine in restaurants regularly or order takeout or delivery, the costs quickly add up, leaving less for essential expenses.
While reducing the amount you buy in restaurants and coffee shops is ideal, you can further reduce this expense by sharing a pizza or large order with one or more friends. You can also buy bulk snacks and food items to share with roommates, which helps keep the grocery bill down.
Cash in on Grocery Incentives, Rewards, and Points
Does your local grocery store offer an incentive program that allows you to collect points with every purchase? Some stores partner with credit card companies to offer low-interest rates and products for students.
These can also be used to collect points and enjoy rewards, such as free or discounted groceries and household items. When you use the debit card for your bank account, you can also track how much you spend, similarly earning points on specific items at your local grocery store.
Many shops offer coupons, limited promotional offers, and other deals for a specific time, which are ideal when you need to save on food, drinks, and everyday items for your apartment and daily living expenses.
You can also save time by ordering certain items online, such as dish racks, tool kits, towels, bedding, and clothes. Amazon Prime offers free delivery services and other discounts or incentives for members, which are also ideal for students.
Determine What You Want vs. What You Need
It’s easy to spend your money on new items, especially when they’re trendy, on sale, and appear useful at the time.
One way to cut back on unnecessary spending is to use the 50-30-20 rule, which means, 50% of your income goes towards essential bills, like rent, utilities, groceries, and internet, 30% is used for items you want, and 20% is set aside for savings.
When there’s a challenge in applying this rule because your expenses exceed 50%, you can reduce the 30% portion or decrease savings. Ultimately, you’ll want to keep saving where you can, so reducing the amount you spend on “wants” is a good idea for future financial planning.
Stick With Your Budget to Improve Money Management Skills
When you regularly review your budget, you’ll sharpen your financial management skills, which is beneficial if you plan on opening a business or working in the financial sector after you graduate.
It’s also essential for future planning when you decide to buy a home, or car, or make another significant investment. The way you spend and save money in college will definitely impact your spending habits long after you graduate from college.
Look for Grants and Scholarships
You’ll be surprised how many grant and scholarship programs are available to students. A quick online search or inquiry with local non-profit and community organizations can provide you with a lot of great opportunities.
Once you find scholarship options in your area, you can find out the eligibility criteria and how to apply for the following school year.
If you qualify for a grant, which can range anywhere from one hundred to several thousand dollars, you’ll find this will help you save more in tuition costs and related expenses throughout the school year.
Pay School Fees Carefully
While some credit cards offer reward points and cash-back incentives, students’ interest rates remain high.
When you pay school fees, whether it’s to submit an application for tuition for several courses, using your credit card can be more expensive than expected, especially if you can’t pay the full balance within thirty days. Instead, use your debit card or cash as much as possible, especially for high-cost items.
Buy Secondhand Textbooks
If you can avoid buying new textbooks, you’ll save hundreds of dollars when you shop for secondhand books and resources. Some organizations and companies offer free used textbooks, with options to rent or borrow them for the duration of your studies.
Plan Your Meals and Cook at Home
Prepping meals might take a lot of work, but it’s worthwhile when you struggle to pay bills and afford tuition. Dining out should be an occasional indulgence so you can track how much you spend on groceries every week.
Meal planning consists of creating a menu for the week with reasonable, affordable options that are easy to prepare and not too time-consuming. This will give you more time to study and work on school assignments.
Sell Your Old Textbooks
Textbooks take up a lot of room on your shelf, and once you finish a course, you’ll likely never use them again. When you sell them online or through your school, you’ll not only help someone save money, you’ll also make some extra cash, which is always useful. You’ll also make more space at home!
Make Coffee and Tea at Home
One of the most common ways to overspend is buying that morning coffee, tea, or latte at the local cafe on your way to class. While grabbing a hot cup of coffee or a shot of espresso is convenient, it can easily add up over a short time, especially when many drinks cost five dollars or more.
If you want to enjoy a hot morning beverage, bring a thermos with fresh coffee brewed at home, and you’ll be surprised how much you save!
Shop at Thrift Stores, Discount Shops, and Online Classifieds
There are plenty of thrift stores, discount shops, and places where you’ll find excellent bargains on new and secondhand goods. Not only will you find all your necessities at a fraction of the cost, but many thrift shops also offer unique vintage fashion items and gently used affordable designer clothing.
Furniture, appliances, and housewares are also commonly found at thrift stores, so you won’t have to pay full price for a toaster, blender, or dining room set. Some shops offer delivery and convenient pickup services too.
Upcycle Old Clothing
Reusing and repurposing old clothing is a great way to get creative while saving money and the planet. With more awareness of the impact of the fast fashion industry, buying less and reusing old accessories and clothing items can be a fun way to reinvent your style while staying within your budget. There are plenty of online tutorials and videos on upcycling and the benefits of this eco-friendly trend.
Low or No Bank Fees
Some banks and financial institutions offer the best credit cards for students, especially when they want to build credit and manage their spending without paying high interest and annual fees.
There are also many student bank account options, which may offer incentives, such as no fees if you open a savings account, or the option to collect points or rewards with your card.
When you have a tight budget due to a student loan and regular expenses, always check with your local bank to see what’s available and how to save money.
A financial advisor may provide helpful advice and low-cost products for budgeting, planning, and avoiding impulse spending.
Improve Your Credit Score
When you have bad credit due to late or missing payments, resulting in late fees, this can impact your ability for a loan or mortgage approval later when you finish college. Budgeting apps can help you save, spend wisely, and sometimes check your credit score.
Some financial apps offer great free features, including tips on improving your credit rating and decreasing spending.
Always Ask About Student Discounts
Chances are, you’ll have access to more discounts and savings when you show your student ID card at local shops, theatres, restaurants, and venues. While some businesses actively advertise student discounts, others won’t offer them unless you ask!
Also, if you have a part-time job at a grocery store or cafe, you’ll likely receive discounts, and even free food, as a perk for working there.
Get Involved With Free Activities
Local events, festivals, and entertainment often offer students low admission fees; in many cases, you can attend for free. Sometimes local businesses and organizations offer free items, services, and other great deals to increase their customers, including significant student discounts.
Many university and college campuses offer students free tickets to local movie festivals, concerts, cultural events, and more. You may also find many free events on campus, which is perfect for networking and socializing on a budget.
Summary
Attending college is expensive, but with the right planning, budget, and research, you’ll find the experience makes these years more enjoyable and less stressful. With enough effort, you’ll have access to extra money while curbing impulse buys and excessive spending before they become habits.
Among the many other benefits of cutting your expenses and skipping impulse buys, you also reduce your carbon footprint, avoid excessive waste, and take more time to visit free and low-cost local events, clubs, and activities where you go to college.
By making small, meaningful changes in how you handle money, you can enjoy your college experience while saving for the future.
