How to Save Money As a Student: Scholar Approved
Heading to college is one of the most exciting events in a lifetime. It’s the chance to break out on your own, confirm your identity and prepare for the future ahead. But college is also expensive and this may be the first time you have had this much financial responsibility. As a college student, you will juggle your educational expenses from tuition to fees to textbooks. But you will also be juggling real-life expenses like housing and food and utilities. This is why saving is something you should definitely start doing now, if you have not already.
You’re probably asking, “How do I save money?” Whether you are spending your trust fund or are just getting by with your work/study job knowing how to save money as a student is one of the key steps to managing the money you have without spending the money you don’t.
Set a Budget
The first step you should take when you’re looking to save money is to create a budget. You need a budget to see what is coming in and what is going out. A budget can help you easily identify categories where you are spending too much.
Calculate Your Income
Begin the budgeting process by being completely honest with yourself. Figure out what your sources of income are. Do you receive loan payments, do you have a job and are you receiving money from your parents? Calculate how much money will be available to you each month. Sometimes loan payouts happen once during the semester and you need to stretch that money out until the next payment comes around.
Categorize Your Expenses
Budget in the essential expenses you will have every month. You have to have a place to live, food to eat, running water, heat and a way to get around town. You’ll also want to budget in some money for entertainment so you don’t deprive yourself of some enjoyable moments during the college years.
Stick to Your Budget
Once you’ve made a budget you have to track your spending to see if you’re sticking to it. You can save money as a student by identifying where expenses get out of line during the month.
You don’t have to bury yourself in spreadsheets to create and follow a budget. You can use a free app on your phone like Mint or Wally.
Save On Bills
Take a careful look at the bills you have to pay each month and see if you can find ways to reduce what you have to pay and save on bills.
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It may be a large part of your expenses. Maybe there is a way to switch your phone to a less-expensive plan. That might mean cutting the data allowance or keeping the phone longer to spread out the payments on the equipment. If you pay for your own internet connection shop around for different companies. And you might find that you don’t actually need to pay for cable television any more thanks to all the streaming options.
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If you pay for your own utilities look at ways to cut those expenses. You can save money as a student by replacing your lightbulbs with long-lasting efficient LED bulbs. Keep the thermostat lower in the winter and higher in the summer. Take shorter showers to reduce the cost of heating hot water.
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Also, take a look at recurring memberships. Do you get to the gym enough to make that monthly cost worthwhile? Do you buy enough things in bulk that you need that shopping warehouse membership? Are there apps on your phone that are automatically renewing every month even though you don’t use them anymore?
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This is very important. Be mindful of due dates because the moment a bill is late, additional fees and even interest can begin to accrue.
Food Costs
The cost of eating three meals a day is a big part of your budget. The food you prepare at home will always be cheaper than take-out or a meal at a restaurant. You can save money as a student by cooking your own meals. It will be easier on your budget if you become a smart shopper at the grocery store.
Make Lists
Always make a list and take it with you to the store. Researchers say you could spend 54 percent more during a grocery trip if you fill your cart with impulse buys. You also don’t have to serve yourself filet mignon and lobster tails every night. Look for less expensive options on the pricier parts of your list, like meat.
Chicken thighs are usually less expensive than chicken breasts.
Pre-made hamburgers are more expensive than buying a package of ground beef and shaping them yourself.
Buy produce that is in the season for the best price and taste.
Don’t assume that you always have to buy name brand items. Most store-brand items are comparable in quality to name brands.
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Buy Items on Sale
If you want to avoid a surprise at the cash register, use the calculator on your phone to keep a running total of what you have tossed into the cart. It all adds up very quickly! Take a look at the advertised sales before you go to the store and plan meals around the items that are on sale.
Plan Meals
Never go shopping on a full stomach. When you’re hungry, everything looks good. And once you are back home cooking, consider “planned-overs”. That’s when you make more than one serving at a time so that you already have tomorrow’s lunch prepared or dinner ready for another night.
Take Food from Home
Consider buying your own coffee to brew at home and take it with you in a reusable cup. What you can make yourself for pennies is the same thing that the local coffee shop will sell to you for dollars.
You can also pack your own snacks in your backpack. They will be cheaper that way instead of stopping at a vending machine or a quick-serve counter.
If you do end up at a restaurant for a meal consider making it lunch where the prices are usually lower.
You can also look for spots that offer happy hour pricing on appetizers and small plates.
Housing Costs
You have to have a roof over your head and a safe place to sleep. But you can save money as a student by making thrifty housing choices.
Live on Campus
On-campus housing is often cheaper than renting something somewhere off-campus in larger cities. But it can be competitive for upperclassmen to secure a spot and sometimes students just get tired of living in a single room.
When you head off-campus you may have to adjust your desire to live in an upscale apartment building or house based on your budget. The penthouse views of the park will have to wait until you’re a successful professional out in the working world. For now, you need something safe that is convenient.
Share a Flat
More than likely you will split the cost of the rent with some roommates. When you need to furnish your new home look to thrift stores, garage sales and online marketplaces for deals on secondhand items.
If you are attending college near where you live the cheapest housing option might be living with your parents.
Transportation Costs
Another way to save money as a student is to reduce the cost of simply getting around. If you have a car with you at school a fuel-efficient model will keep your gas costs lower. You could also:
Purchase pre-paid gasoline cards at a discount
Use gasoline-saving apps to compare gas prices in your neighborhood
Set your GPS to avoid routes with tolls
Rent a car when traveling to save wear and tear on yours
Carpool with others whenever possible
Take advantage of public transportation. Many campuses have their own bus lines
Consider using a bicycle. Most college campuses are bike-friendly and it will double as your workout
Textbooks
At the beginning of each semester, textbooks can take a big chunk out of your budget. You can save money as a student by spending the least amount of money possible on books. Don’t buy a book before classes start in case you end up dropping the class or the professor makes the book optional.
Try not to buy brand new books. Buy used when you can or rent when you can. Sometimes older editions of books are cheaper and the differences inside are minor. Check and see if there is a digital version of the textbook available. It may be cheaper than a physical copy and it won’t weigh your backpack down.
Remember Your Student I.D.
If you are trying to save money as a student make sure you have your school-issued identification with you whenever you are out and about.
Get Discounts
You’re likely to find restaurants and local stores that offer discounts with the proper I.D. The local bank in your college town may offer special kinds of student accounts without fees. Museums and movie theaters might offer discounted tickets. The local newspaper could have a student subscription price. Always ask even if you don’t see a sign advertising a student discount.
Your student email address could help you score deals online. Many computer manufacturers have special student pricing. Subscription services like Spotify and Apple Music charge students less. And Amazon Prime Student is definitely cheaper than Amazon Prime for everyone. You can enjoy that legendary two-day shipping plus access to Amazon Prime movies and shows for the first six months free and $59 a year after that.
Free Campus Amenities
If you want to save money as a student be sure to take advantage of all the free amenities on campus. Some common free amenities include things like movie screenings, concerts, lectures, exhibits, and even fitness centers.
At the University of Central Florida, swimming lessons are free for students.
The University of Idaho has a Climbing Center with 6000 square feet of climbing space that is free for students.
Check for these kinds of free amenities on your campus as well.
Some campuses often include free access to printing so you can save money as a student by not purchasing ink cartridges and paper.
Skip the Expensive Spring Break Trip
While it seems like Spring Break trips to the Caribbean and other distant locations is the norm, the reality is those trips are expensive. Instead of paying for airfare, hotels, and restaurant meals somewhere exotic, consider a trip that’s either closer to campus or closer to where you’re from. Make the destination some place you can drive to and invite friends along to split the costs.
Or you can take part in the Alternative Spring Break movement. Organizations like Habitat for Humanity and United Way invite college students to take part in service projects the week of Spring Break instead of hanging out on a beach. It’s the chance to do good work in your community and have one more positive thing to add to your resume.
Use Credit Cards With Caution
From the moment you arrive on campus companies will bombard you with quick and easy applications for credit cards. While it might be tempting to get a credit card when money is tight, it will often end up costing you more than anything you used to buy.
For someone just learning to manage finances, it may be difficult to keep up with all of the spendings that get put on the credit card. You can be in for sticker shock if you’re not tracking all your purchases. In order to avoid interest rates and other fees, you need to pay the balance by the due date but if you didn’t budget the correct amount you may end up making just a partial payment.
Then interest will begin to accrue and you may already owe more than what you bought. You don’t save money as a student by letting interest compound on your credit card balance. If you are going to keep a credit card around discipline yourself to pay the balance in full each and every month and pay it on time. Look for a card that offers some benefit back like a percentage of all purchases or airline miles for trips back home.
Limit Your Loans
Don’t look at student loans as the equivalent of free money. The reality is those loans do have to be paid back. Don’t take extra loan money so that you can eat out more in restaurants or travel to faraway places. Take only the loan money you need to fund your education and your budget.
You’ll be paying those loans back once you are out in the workforce, but even cash-strapped college students should consider making small payments on those loans while they are in college. If you save money as a student and can funnel even a little bit of it toward your college debt, that eases the burden later on.
Conclusion
The college years are expensive ones but money management will go a long way toward stretching every dollar and having the cash for the things you need the most. Your college financial plan should begin with a budget. The budget will tell you exactly how much money you need for each month. But the budget only works if you have the discipline to stick to it and to carefully track all of your income and expenses.
Bills are inevitable but the financially savvy college student will work to reduce them to their lowest levels. Make good housing choices by looking for the best value close to campus and then split the cost with a roommate. Be mindful of getting around town. Don’t just jump into the car on a whim, consider public transportation, bicycling or even walking.
Try not to buy brand new textbooks. Seek out secondhand and online bargains. Take full advantage of your student I.D. and all of the discount possibilities it can open up. Be aware of free campus amenities and take advantage of everything from fitness centers to free movie showings. Approach credit cards with a wary eye because carrying balances and allowing interest to accrue will not help you save money as a student. Skip the exotic and expensive Spring Break trip and opt for something close to home or give of yourself during a week of service.
Limit the dollar amount of student loans so that you can reduce the money that needs to be paid back. Becoming financially responsible during college sets you up on a path for monetary success once you aren’t a student anymore. The good money habits you develop when you’re young will stay with you for a lifetime.