It’s exciting finally being out on your own, able to make decisions for yourself. However, Freshman can quickly find themselves in financial trouble if they aren’t smart about managing their money from the get-go. Savings accounts can be drained the first year of college when you aren’t paying attention to how you are spending your money.
It can be possible to enjoy all the experiences of college life while still maintaining your financial goals. By understanding where you can save money, how you are spending money and sticking to a budget you can not only survive freshman year you can thrive and do so on a solid financial footing.
Ask any older college student and without a doubt, most will chime in with the same “I wish I had known about” tips. We’ve collected the most popular ones to share here. These lessons learned will not only keep you from finding yourself in a financial pickle freshman year but will also prepare you to maintain healthy money habit throughout your life.
1. Take Advantage of Student Discounts
Student ID cards can be more than just a ticket into the dining hall; they are also a key to unlocking countless student discounts. From movie theaters and restaurants to clothing stores and even public transportation, never underestimate the power of your student ID. Always ask if there's a student discount - you'll be surprised how often the answer is yes!
Another way of finding student discounts is through apps. UNiDAYS or Hooked Deals are apps for example, that feature discounts you’ll want to take advantage of. UNiDAYS features discounts on top brands and Hooked Deals will help you find hundreds of food deals nearby. There are many more, just ask around and other students will be happy to share their finds.
2. Save on Textbooks
Most veteran college students will tell you, never buy textbooks from the campus bookstore without comparing prices online first. Websites like Chegg, Amazon, Slugbooks and BookFinder can save you a ton of money on both new and used books. And remember, renting or buying used textbooks can be significantly cheaper than buying new ones.
3. Plan Your Meals
Eating out regularly can quickly use up everything in your checking account. Instead, use your school meal plan and try to eat the food you have already paid for. A popular tip many students will share is to don’t be afraid to take some food to-go. Savvy students know to take some snacks with them after they leave the dining hall, so they won’t be tempted to buy food later when the munchies kick in.
You can also, take advantage of free food events on campus. You’d be surprised, they're more common than you think. Schools and campus clubs want to encourage students to participate in campus life so they will often organize events throughout the year, go, enjoy and eat up!
4. Be Smart About Transportation
Freshmen are typically required to live on campus so most if not, all will not have their own vehicle. When getting around campus and the surrounding area, try walking, biking, or using public transportation - which is often discounted or even free for students.
Carpooling or using rideshare apps for longer trips can also save you money. Share the rideshare when venturing away from campus and split the cost with your friends. Try to make plans at times of the day when the rideshare costs will be lower, you might get there a little early but if you have time to spare it will save you few bucks that might be better spent on meal or movie or whatever you enjoy doing.
5. Go to Class
One of the biggest ways to save money is by simply going to class. It can be tempting to sleep in or skip a class or two but falling behind and potentially failing a class will cost you. You already paid hundreds if not thousands of dollars to take that class, repeating it will surely be expensive.
For example, the average cost for a 3 credit-hour class runs around $1,500 at public college for an in-state student. A typical college semester is 15 weeks. That means you pay $150 a week to go to class, and if that class meets twice a week, skipping a class just cost you $75.
6. Track Your Spending
This can be a game changer. There are numerous budgeting apps such as MINT, YNAB and Goodbudget available that can help you keep track of where your money is going. By seeing it all laid out in black and white, you can identify areas where you might be overspending and make necessary adjustments.
However you get your money, if its an allowance from mom and dad or from a part-time job, try to use the 50/30/20 rule. Spend 50% of your money on needs, 30% on wants and save 20% for a rainy day. Now be sure you categorize your spending correctly, an $8 coffee from the coffee shop may seem like need because you need the caffeine to make to it to class after a long night studying, but a free coffee from the dining area under your meal plan will also provide the boost you need without the additional cost.
7. Don't Fall into the Credit Card Trap
Finally, be careful with credit cards. Now that you are 18 you are old enough to apply for one on your own. While they can be useful for building your credit score, they're not free money. Use your credit cards responsibly. High interest rates can quickly turn a small balance into a mountain of debt. Try to start off with the habit of only charge what you can afford to pay off each month.
Remember, every penny counts, and making smart financial decisions now can set you up for success in the future. Here's to a great (and financially savvy) college experience!