To many of us, however, college represents a life-changing phase. With this independence comes a lot of responsibilities. Between your basic living expenses, tuition, books, and accommodation, it is only a matter of time before you begin feeling overwhelmed. If you lack smart habits, you are likely to fall into the trap of overspending. This article focuses on a more pressing matter that most students if not all, grapple with while adjusting to this phase of life- money-saving tips that make college life bearable if not exciting!
Let’s dive right in, shall we?
- Start with the Basics
Understanding your financial position is the first step to attaining financial stability as well as healthy spending and saving habits. In a nutshell, you need to write down your overall expenses. Afterward, identify your sources of income. When you have this in order, try and figure out how your expenditure and income interplay. In order to save money, your expenses need to be less than what you earn.
Another important factor to consider while setting up your basics is the cost when choosing a school. Consider some of the following factors:
- Is the school in-state or out-of-state?
- How long is the course?
- Is there public transportation available?
- Does the school offer accommodation?
It is alright to get creative with your choices, but do not try to pick a school just because you love it.
- Get help if you are in debt trouble.
It is no news that majority of the college students fumble with loans and debts that they could have either managed in a better way or avoided entirely. While it may be absolutely necessary for you to sign up for student loans and credit cards, it is important to have a plan for managing these debts prior to taking them. For, example, you can take up a job within your institution or close to your institution. This allows you to strike a balance between your studies and your job.
As a college student, you can get into deep trouble if you are not aware of how much you borrow, how much you owe, miss payments, or pay your bills later than the expected time. A great way of knowing the amount of debt for you is by following the 20-10 rule. Ever heard of it? No worries. The 20-10 rule stipulates that when deciding whether to take out money, limit the amount you borrow to less than 20 percent of your annual net income. On the other hand, when setting your monthly payments, limit them to less than 10 percent of your monthly net income.
- Seek Financial Aid
Do not get scared when you hear about student loans. For some, it is the only saving grace- your only ticket to achieving your lifelong dream. However, you have to understand fully how these loans work and the important aspects that you need to be aware of before signing up for any of the loans. Remember that student loans are loans just like any other loans: you are borrowing a certain amount of money that comes with interest which compounds over time. Besides, you need to figure out whether you are taking direct subsidized loans or direct unsubsidized loans. Ask yourself whether the loan you are taking is federal or private.
The bottom line is to use student loans as your last resort with full knowledge of what you are applying for.
- Make Use of Student Discounts
The advantage of being a college student or a student at all is that you get access to things at lower costs than usual. You can achieve a great deal of savings by making use of students’ discounts. Sometimes, it is as good as having your student ID. Other times, you may need to search for online platforms that offer a wide array of student discounts on various products.
Additionally, you will need the art of flexibility in terms of expenditure and your purchasing choices. Opt for products that make room for discounts as opposed to those that offer none. Student discounts on arts and entertainment, electronics and software, food and dining, transportation insurance, and retail all exist for one reason- to help you traverse this phase while managing, at the very least. Be alert for student discounts, as small as they may be, they may make a huge difference in the long run.
- Avoid Unnecessary Expenses
The best way of managing limited finances is by prioritizing your needs. Agreeable, if we were to list all our needs we may not be able to cater for them all in totality. However, learn to categorize your needs and wants. Of your needs prioritize those that require urgent intervention and stick to your budget. Unnecessary purchases including impulse purchases will cost you unnecessarily. One of the ways of dealing with impulse buying is by applying the 24-hour rule. This means that for every desired purchase, wait until a day passes, then assess whether you still need the item.
Additionally, go for alternative expenditures that will allow you to save some coins. For example, you can opt for home-cooked meals rather than visiting a restaurant for your daily means. Also, you can decide to buy used textbooks or rent textbooks instead of buying new ones. You can also go for digital options like e-books or online library resources instead. Rather than fueling your car every day to school, you can opt for public transportation which will save you on maintenance, fuel, and insurance costs.
Take-Away:
College life is both exciting and unpredictable. To some, it is a matter of adventure, to others, a period of uncertainty. All the same, it is a journey that sometimes must be walked. Financial literacy is a key essential in this path and a determiner of how far and how smooth your sailing shall be. Trying to save money when you’re a college student is hard because there is a lot of stress from school at the same time. If you do save money while in school, you will be very successful.
