Wouldn’t it be nice to have a lot of money? It’s easy to answer in the affirmative, since having more money means being able to afford more of what we like.
However, money doesn’t fall from the sky. People need to work hard to earn money. Many college kids seem to overlook this important fact. In fact, many college students tend to spend rather than save. When many students are depending on student loans to finance their education, a spending attitude is the easiest way to get into a financial dilemma right after college.
Student financial responsibility is something that college-goers must learn if they want to avoid financial problems after graduation. Here are some tips on how college kids can save money:
Use credit cards wisely
Many students don’t realize that the credit limit isn’t the money they have in the bank. It’s merely a limit on how much payment they can defer, regardless if they have the money or not. Many students who habitually max out their credit cards end up having no money when the bill arrives. The result is delinquency and a tainted credit rating.
It’s best to live on a cash basis to make it easier to monitor or limit your spending. Use your card only when you can afford to pay the purchase back comfortably. And when the bill arrives, make sure to pay on time. This will help you build a good credit score.
Buy only what you need
This is tricky, since most people confuse needs and wants. Although everyone needs to eat and drink, going to your favorite coffee shop for your caffeine jolt isn’t really a “need.”
Remember to be frugal. A used textbook is still just as useful as a brand new one. You don’t need to get the branded items. In many cases, you don’t even need to buy anything at all. Unless you can’t finish a course without a particular item, chances are, you don’t really need that item.
Use coupons
Many businesses provide discounts for students in the form of coupons. They do so to build customer relationships. Take advantage of this and take the extra time to clip coupons to help you minimize expenses.
Pack your lunches whenever you can
It takes time to pack your own lunch, but buying store brands from groceries are usually cheaper than going to a fast-food restaurant.
Open a savings account
Stash away some money each week in your savings account. As you develop the habit of saving, challenge yourself to increase the money you deposit.
Apply for work-study programs or a part-time summer job
Saving is easier when you have a source of income. It also teaches you that money doesn’t grow on trees.
Leave your car at home
In most university towns, everything you need is usually within walking distance from the campus, so you really don’t need a car and the attached expenses, such as gas, maintenance and insurance.
Sign up on the box at the right to see what other school cost saving options are available to you.
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