Financial Hacks for College Students
- Author: Monica Jackson
- Posted: 2024-07-27
As a college student, being financially smart is extremely important to set you up for a successful future. When you do not have many essential expenses besides tuition and fee payments, saving money for the future is the right move instead of spending unnecessarily. Here are some financial hacks and tips for college students to set yourself up for a sound financial future.
Save, Save, Save
If you have any revenue coming in, it is best to set aside a large percentage of it and not spend it all immediately. While vacations during breaks and food deliveries are tempting, being able to have those luxuries in the future is more important than the present. To have money to live on after graduation, you must build up enough savings to get yourself on your feet financially. Additionally, student loan payments can be extremely onerous after graduation, so you need to set aside money to cover those as well.
Keep a Spending Log
When you do need to spend money, keeping track of your expenditures is how you will keep yourself under control. Knowing your financial picture down to the dollar will help you regulate your spending. When you know your remaining balance and your previous transactions, you can have a good idea of what else you can spend for the rest of your budget period. Sticking to a spending log will prevent you from breaking your budget and depleting your monetary reserves.
Limit Your Credit Use
When you are in college and beginning to build your financial standing, building up credit is important to get loans and credit in the future. However, with a credit card, it is very easy to mistake it for an unlimited resource and get into untenable debt. If you choose to have and use a credit card, sticking to a low budget is important to limit any possible debt. Credit card debt is a spiral because companies charge more and more in interest if you have more debt. To avoid the debt spiral, only spend on credit what you know for sure you can pay back.
Try Not to Buy All New Things
Essentials like college textbooks normally are very expensive. However, buying them used instead of new will give you the ability to spend more money on other things. Besides textbooks, if you need a car, do not buy a new car, as that is normally unnecessarily expensive. Used cars do the exact same job and have many of the same features as new cars nowadays, so spending thousands of dollars less is worth it. Finally, if you live in an on-campus dorm, always try to get used appliances from someone else on campus instead of buying it yourself. If you need a new fridge in your room, ask a campus office for a new one. Buying new things like that is a waste of money and is not sustainable.
Be Employed
In many cases, the only way that a college student can have an income is if they get a job. Fortunately, there are many jobs on and off campus available for students typically. On-campus jobs are normally not difficult and require no commuting. Students who work on campus can make enough money for supplementary income to facilitate leisure spending from time to time. If you decide to work off-campus, that may entail more of a commitment. Many college students decide to work their off-hours in restaurants, which can pay the same as on-campus jobs and have more benefits. For example, some big companies have decided to help pay a college student's tuition if they still work for them.
Cut Costs in Other Ways
When you have all that you need on campus, it is important not to spend extra just to get the same things. For example, if you already have a meal plan that gives you all the food you need, do not go out to a fast food restaurant and splurge. Many people have cravings for their favorite fast food items, but it is better to wait until breaks where you have no meal plans. Additionally, if you go to college in a large city and do not have a car, taxi cabs can be a really expensive way to get around. Public transportation is always much cheaper than a cab, so consider taking the bus or train to get downtown instead. Finally, if you need a streaming service for entertainment, do not maintain multiple subscriptions for different services. Consolidate your entertainment costs into one small monthly fee instead of many.
