Reflecting on my university days, I often find myself longing for a financial mentor who could have guided me about money management techniques. It’s a fact that monetary strategies are challenging during college. However, diverse methods can help extend your money while studying, and not surprisingly; a 2016 Edvisors survey showed that two-third of students faced cash crunches at least once in their first semester. Since college life comes bundled with newfound responsibilities, it also becomes crucial to manage expenses well. The best four years of your life may also turn out to be the costliest, given major expenditures like tuition fees, accommodation, books, and food.
However, being prudent can help you extend the value of each dollar spent. Below, we share 10 profundities to help you manage your money effectively.
START WITH A BUDGET
I advise all college students to initiate money management with the creation of a budget. A simple monthly budget can be a roadmap to direct your spending habits wisely. It also enables you to identify your overspending areas and cut back accordingly. Be sure to allocate portions of your budget to essential areas such as textbooks, rent, laundry, school supplies, food, and personal enjoyment. You may need to revise your budget each semester.
IDENTIFY SPENDING TRIGGERS
Understanding the root cause that compels you to spend unnecessarily is instrumental in controlling your spending habits. Recognizing these triggers to overspending and thoroughly analyzing your needs versus wants can help prevent pointless spending. To validate your necessary purchases, you could always leave an item in the store and wait for an hour to measure your desire for it.
CONSIDER A MEAL PLAN
If you’re residing on campus, a meal plan could be a great budgeting tool. This tactic not only prevents you from eating out too often but also helps save money that might otherwise be spent on groceries. By preparing your own breakfast or reducing snacks, significant savings can be achieved yearly.
UTILIZE STUDENT DISCOUNTS
Your student ID is your key to many discounted avenues, including movie theatres, restaurants, comedy clubs, sporting events, and local attractions. Save money on gym memberships by leveraging the often-free access provided by your college. Be sure to explore any available medical and dental plans too.
EXPLORE SHOPPING AND COUPON APPS
Unleash the power of technology by exploring apps like Ebates and Ibotta to get cashbacks on online shopping and grocery purchases. Such small savings here and there can accumulate over time.
FIND A ROOMMATE
Housing is one of the prominent expenses for a college student. Splitting rent and utility bills with a roommate can significantly reduce your monthly expenditure.
PURCHASE USED ITEMS
Seek platforms like Craigslist, eBay, OfferUp or Nextdoor to purchase second-hand textbooks, furniture, or computers. Consignment shops can also offer considerably discounted items.
SECURE A JOB
If time permits, consider finding a job on campus. While they may not pay exorbitantly, such jobs can offer an added source of income, accommodating your occasional acai bowl indulgence.
EXPLOIT CAMPUS FREEBIES
Take advantage of free events, meals, and services offered on campus. Also, use your student ID to avail discounts off-campus.
LIMIT CAR USAGE
If your college is within reasonable distance, consider walking, biking, or using public transport. Savings on car insurance, maintenance, and fuel can be substantial. If car usage is inevitable, consider carpooling, which can cut costs significantly.
In conclusion, adopting these strategies during college can help you effectively stretch your dollar for years to follow. The key remains in understanding what triggers your spending, setting a monthly budget, and introducing creative money-saving ideas. How has your experience been in managing money in college?
