The transition from high school to college can be tough. Aside from academic responsibilities, college freshmen also have financial decisions to make that they never had to think about when they lived with their parents.
Sadly, many college freshmen don’t know about student financial responsibility. This is why many college students end up with unnecessary credit card debt. Poor financial management can cripple a student’s financial stability by the time they graduate.
To avoid financial blunders, college freshmen should learn how to live frugally. Here are some tips to help college kids save money:
Account for all your expenses
Make sure that you list down all necessary expenses, like rent, utilities, transportation, groceries and debt payments. This will give you an idea of how much you have to set aside each month, to create a proper spending and savings plan. Collect and organize all your receipts for accurate accounting.
Work on minimizing costs
Your rent expense won’t change as long as you live in the same place. However, your other expenses can. It’s up to you to find ways to minimize these costs.
For instance, eliminating bad habits like leaving the faucet running or the lights in your room on can reduce your utility and electricity bills.
Do you really have to use the car all the time? Perhaps you can car pool or simply ride a bike. These activities can significantly reduce your transportation costs.
You may want to try packing your own lunch using cheaper items found in the grocery, rather than eating at a fast food restaurant.
When you buy textbooks, second hand can be the same as brand new.
Be creative, and constantly look for ways to reduce your expenses.
As much as possible, use cash
Credit cards provide a false sense of wealth, because many college students don’t realize that the credit limit is not money in the bank. It’s how much one can pay, given a set monthly income limit. This lack of understanding, however, causes students to overspend.
Avoid this by sticking to cash for everyday expenses. This will help you buy only what you can afford. You also get to minimize (or avoid entirely) interest costs.
Whenever you can, save
Make it a point to stash away a specific amount every week. Saving $20 to $30 each week is a good start. As you develop the habit of saving, challenge yourself to save higher.
Sign up on the box at the right to see what other school cost saving options are available to you.
Add A Comment