Do your college plans have bigger plans than your wallet? If so, you are not alone. Many students have to struggle financially in the face of trying to balance tuition, books, meals, and entertainment.
The good news is that there are multiple effective ways to curb your expenses with little compromise on the college experience. Here are some practical tips to help you save money during your college years.
What is the 50/30/20 rule for college students?
The 50/30/20 rule is a budgeting guideline that helps college students manage their finances effectively by dividing their income into three categories:
- 50% for Needs: Essentials such as rent, groceries, transportation, and tuition fees.
- 30% for Wants: Entertainment, dining out, shopping, and other non-essential expenses.
- 20% for Savings & Debt Repayment: Emergency funds, savings accounts, and paying off any student loans or credit card debts.
This rule provides a balanced approach to spending while ensuring that financial goals are met.
How can I save as much money in College?
Create a Budget
Budgeting is very important, especially when managing your finances for the first time. A good budget helps track income and expenses, ensuring that all your needs are met before spending on less important things. Bank of America recommends five easy steps to create a budget:
- Calculate your total income (scholarships, part-time jobs, parental support).
- Track monthly expenses, including rent, utilities, and groceries.
- Set short-term and long-term financial goals.
- Compare your income with expenses and adjust accordingly.
- Keep to your budget and make changes whenever necessary.
You can avoid overspending by making sure to pay for necessary expenses first. It may not be easy, but skipping that concert or shopping spree might save you financially in the long run.
Buy Used Textbooks
You will save a lot of money buying used books, though textbooks can be quite pricey. Instead of purchasing new textbooks, you can look for second-hand versions on websites like ThriftBooks or even rent them on platforms such as Pearson. A new physics textbook can cost as much as $259, but you can find the used version at a price of $8.59.
Another cost-cutting method is selling your textbooks on the platforms of a website like BookScouter after the end of the semester. You can thus recoup some of your initial investment and help other students save, too.
Cook Your Own Meals
Dining out most of the time will exhaust your budget pretty quickly. Simple meals cooked at home will save lots of money. Invest in a microwave, a hot plate, and a mini-fridge (if permitted inside the dorm) to prepare your meals. Stock up on essentials like lunch meats, yogurt, and fresh vegetables.
Making your own coffee instead of buying it from the campus cafe can also help cut costs. Also, if the meal plan is more expensive than preparing meals yourself, consider opting out of the university meal plan.
Take Advantage of Student Discounts
Many businesses offer discounts only to students. All you need is your student ID to get discounts on movie tickets, electronics, and much more. Websites and apps like UNiDAYS and Student Beans provide access to a wide range of discounts.
To take advantage of student perks, search for “student discount” online and find deals in your area. Credit cards with student rewards can also provide cashback and special offers on everyday purchases.
Use Public Transportation
Owning a car is expensive-from fuel to insurance and maintenance. Public transportation is far cheaper. Metro Magazine cites statistics that riding public transit saves more than $10,000 a year versus owning a car.
You could purchase a reduced-rate student transportation pass to save even more money. If available, take online courses to save yourself the costs of commuting.
Avoid Credit Card Debt
Credit cards are handy tools, but only if used properly. Do not use them unless absolutely necessary to avoid getting further into debt. Avoid withdrawing cash, which carries heavy interest rates.
To maintain healthy credit, always keep in mind:
- Always pay the minimum amount that is due on a monthly basis.
- Do not exceed your credit limit.
- Whenever possible, try to pay more than the minimum amount due.
- Do not collect too many credit cards.
You could use apps like Credit Karma to monitor your accounts for fraudulent charges.
What saves you the most money in college?
Part-Time Work
A part-time job may help to offset expenses while gaining work experience. In many universities, flexible on-campus jobs are available to fit a class schedule. Whether working in the library, cafeteria or as a tutor, these jobs will be an add-on income without getting in the way of study.
If your schedule allows, consider freelance or gig work, like tutoring, online surveys, or part-time remote jobs.
Entertainment on a Budget
You would be surprised how fast entertainment costs can add up, but there are a few ways to enjoy college life on a budget. In place of expensive outings, try hosting movie nights in your dorm with friends or take advantage of free campus events.
You could share streaming services with friends, attend free local attractions, or explore the student clubs and organizations that host low-cost social activities. Explore free or discounted events such as concerts, art shows, or sports games by your college.
Online Courses
Online classes are also cheaper alternatives to traditional classes on campus. Many colleges provide hybrid programs, which combine online and in-class learning and help you save money on transportation, housing, and meal plans.
U.S. News & World Report reported that online classes have financial advantages, including the following:
- Save on room and board.
- Cut transportation costs.
- Access more affordable course materials.
If your college offers online course options, exploit them in order to cut down on educational costs.
How much money should I be saving as a college student?
As a college student, aim to save 10-20% of your monthly income if possible. However, the amount you should save depends on your financial situation and goals. A good rule of thumb:
- Emergency Fund: Have at least 3-6 months’ worth of living expenses saved.
- Short-term Goals: Save for upcoming needs like books, rent, or travel.
- Long-term Goals: Start a habit of saving for future investments or loan repayments.
Even if you can only save a small amount each month, building the habit early will benefit you in the long run.
Conclusion
Saving money as a college student requires smart budgeting, careful spending, and taking advantage of available resources. With these tips, you can ease financial stress and focus on what matters most – your education and future career. Start by setting a budget, cutting unnecessary costs, and exploring cost-saving options such as used textbooks and student discounts.