3 Ways to Save Money While Still in College
Monday, April 29, 2019, 6:00 AM | Leave Comment
Besides the purchase of a home, a college education is probably the second largest financial transaction you will make in your lifetime.
Not only is tuition expensive, but figuring out how to survive while going to school poses several challenges.
If your college savings plan is either non-existent or just barely covers tuition, there are some financial solutions to help you during the next four years.
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Have a Financial Plan
While no one can completely control what will happen to them in the future, a sound financial plan will certainly help you absorb the shock of the unexpected twists and turns your life will take. Your future self will thank you for being a hard-nosed pragmatic rather than a glassy-eyed dreamer when it comes to getting an education.
Many students will have limited financial help from family and will have to at least partially finance their education on their own, which would mean seriously considering student loans. The more you plan and save ahead of time, the less you will have to depend on loans to finance your education and the quicker any debt you accrue will be paid off.
Having a financial plan includes considering where you will go to school and where and how you will live for the four years of your education. If you’re lucky enough to live in or near a community with a two-year and/or four-year institution within reasonable commuting distance, consider living at home.
Even if your career goals and aspirations take you far away from home, most four-year institutions will allow you to transfer general education credits from a reputable two-year institution, so that you can reduce your tuition costs substantially at the four-year institution of your choice.
Additionally, consider taking summer classes that meet your requirements so that you can get your degree much more quickly. When you try to graduate sooner, you could save money in the long run without increasing your living expenses and reducing your summer income too much.
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Create a Budget
According to House Method, having a financial plan also includes learning how to budget and save. The challenge of going to school is that much of your time is devoted to learning. Taking a full-time or even part-time course load cuts into available working hours and limits the amount of income you will be able to earn while in school.
While it’s important to find ways to earn income while going to school, it’s also important to understand that during your time in school, your income will be very limited. In fact, you’ll probably be living on either student loan income or accrued savings throughout your college years.
Stretching your income requires a serious commitment to budgeting and self-discipline. If you are new to budgeting, it’s extremely helpful to practice before you go off to college. Budgeting is a skill and takes time to learn.
Try budgeting your summer and part-time job money while living with your parents before you go to college. Work with mentors and family members on developing a budget and practice living on your budget with your existing income and allowance.
There are many programs, websites, applications, resources, and books that will help you develop your first budget. For example, Mint has an extensive website and mobile app that integrates with all of your existing credit, savings, and bank accounts so that you can balance your checking and savings accounts regularly while also tracking your budget goals.
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Be a Bargain Shopper
Being the cleverest bargain hunter can be a badge of honor amongst college friends. From dishes to furniture to clothing can be bought at a thrift store for pennies on the dollar, there are plenty of ways you can save money. Best of all, it’s more socially and environmentally considerate to shop in thrift stores.
In addition to thrifty retail, food can get very expensive if you eat out constantly. Consider shopping at thrift grocery stores for food. For a college student, ALDI is a smart food choice with a selection of fresh produce and holistic food options that will rival anything at the much pricier grocery stores. If you must eat out, try to find coupons and deals on Hooked, Pocket Points, or Groupon.
