Saving tips for college students

The 13 easy money saving tips for college students.

Hi there! How’s life going? Are you aware of what’s going on in the NBA? Zion Williamson’s knee injury is indeed a big jolt for New Orleans Pelicans! That’s unfortunate. But what to do! This is our uncertain life! That’s why I always advise everyone, especially college students, to take care of their money. If you learn how to take care of your money now, in your troubled condition, money will take care of you!

What should be my concern while I am going to college as a freshman?

So, you are going to take admission in a college as a freshman, right?Check out the points to help you on financial grounds!

  • First things first, try to obtain grants and scholarships by using FAFSA (Free Application for Federal Student Aid). The scholarship will help you to get monetary relief up to a limit while paying your college fees.
  • Your next aim should be to apply for the federal student loan.

Why should I toil for a federal student loan?

It is not without reason college students first choose to apply for a federal student loan.

  • You can get it at a comparatively lower rate of interest than a private student loan.
  • You can pause your single monthly payment indefinitely in case you are facing problems with debt repayment.
  • Only the federal student loan will give you the debt forgiveness option. The private lender may only reduce your debt  partially.

Have you read these three points? Have you understood them? Can you ask for anything more from the federal student loan program?

Should I worry about the budget?

I know the six-letter word may have dumbfounded you! Thinking about the budget now? No way! Indeed you are a college student. Does it mean you can lead a carefree life by thrusting all the burden on your parents? Try to take responsibility from this age as you are currently in the learning stage.

My question is you belong to the internet-savvy generation Z, right? Why don’t you take help from the financial apps for budget preparation? Apps like ‘MoneyBook’ or ‘Mint: Money Manager’ can be your budget making partner.

What are the benefits of student loan refinancing?

Have you heard the shocking news about college students refinancing debt? A Forbes report says the interest rate on student debt has come down to its lowest, which is currently 2.01%.

So what? How can it be beneficial for me?

Take a look at what student loan refinancing means:

  • You are taking out a new loan at a new interest rate.
  • This time, the interest rate will be more favorable than your previous loan.
  • The second loan provider will offer you the loan at a lower interest rate than the previous one.

So, you can save money on the interest payments. As a student, it is not an insignificant amount that you are going to save per month.  The great news is current interest rate is only 2.01%. You are getting an option of repaying your student loan faster than ever!

Do I need an emergency fund when everything is normal?

The same question arose in my mind when my dear friend as a senior at college told me about emergency fund! But now I am experienced enough to understand its importance.

Our life always sails in uncertainty. You may not know when you need some money all of a sudden and your family or friends won’t be in a suitable position to help you out. Therefore, try to create an emergency fund beforehand. It will help you to grow up a new characteristic within you which is self-reliance.  

Can student discounts save some money for me?

Student discount is another option you can toy with! Vendors, grocery stores or supermarkets, near your college, must have some student coupon system for sure. If you are not getting such stores on the internet, please try to search them physically in the locality! 

Will the FBI (Federal Bureau of Investigation) keep track of me if I use more than two credit cards at a time?

Frankly speaking, two credit cards are enough in your age to sustain your expenses. Why do you need multiple credit cards when you are still a student? You may be only doing a part-time job. So, it is good for you to restrain yourself from acquiring unnecessary debts.

In case you have already acquired multiple credit card debts, you can opt for credit card debt consolidation.

Symptoms to know what are the signs of credit card debt and how it can ruin your life.  Think about it:

  1. A credit card may tempt you to buy bogus items which are not necessary.
  2. The problem is that the financial institutions will not consider whether you have bought it out of necessity or you have only made a fancy buy!
  3. You have bought the item in an unplanned way. It was not included in your budget.
  4. Eventually, either you will start skipping the payment or you will make delay in payment.

These are the signs of credit card debt which you can’t manage properly. At first you’ll start making the minimum payments somehow and your debt will pile up. You may also use another card to repay the previous one.

So, to avoid this, in your age and phase of life, I will recommend you to use the debit card over credit. At least, these sticky problems won’t arise in your life so early. You will have to spend within your limit. But again, responsible use of credit cards help to build a good credit score.

Why is it important to make a balance between wants and needs?

“Have you checked the features of Apple iPhone 11 Pro? Man! It’s amazing!” For college students, the latest model of the iPhone is the center of attraction! Maybe you are thinking to buy that phone to impress your college friends. But this is not your need now. Try to repay your education loan first, luxuries can wait.

You may read this online column to find inspiration on why saving is more important than spending when you are a student?

Do college students require insurance?

Never assume that you can think about insurance later since you’re a student now. We are not fortune teller friend! We cannot predict when in the future we will fall ill or any bad thing will happen to us.

That is why it is important to get health insurance or college students renter’s insurance. The renter’s insurance will safeguard you from any damage to your personal property when you are living as a renter.

Is it a bad idea if I buy second-hand books?

Has anyone told you that you should buy new books only to get good marks in college?  It is another classic example of wants and needs! You may buy some used books too, to save your money.

There are numerous online stores where you can find books at a cheap rate! Search thriftbooks.com, betterworldbooks.com, or bx-zone.com for second-hand books. Not only buying but a few online bookshops also let you sell your old books too.   

How about using my old cycle while going to college?

You may return to your childhood for the sake of saving some money! Use your old cycle to go to college. You can easily save your money, friend! I was reading a report a few days ago. It says metros like New York and Chicago are turning into more and more cycle-rider friendly. Moreover, shouldn’t we support our climate-warrior Greta Thunberg? Use your cycle to show your support towards her.

I have my room in my house-Why do I share now?

Do you know during his college days, Mr. Trump had lived in a rented row house to save money? It is an old but popular money-saving trick!  You will get enough time later to build 7 royal mansions like him! But for now, try to share your room with your classmates to save some bucks!

Can I go for entertainment once in a fortnight?

When I was a student like you I was fortunate enough to spend Christmas Eve on Bourbon Street! I still remember the Jazz singer who said: “There is no value of life without entertainment!”

Indeed, student life is not only about discipline. You have every right to entertain yourself. But in this phase of your life, never go out for more than once in a fortnight. Try to keep your outings well within your budget.

Do I have the potentiality within me to be the next Warren Buffett?

College life is practically the doorstep to your new life. In this phase, you are going to get absolute liberty in both the personal or professional arena!

Why shouldn’t you start learning about basic financial management strategies like savings and investment? Look, money is not the factor here. Learning financial techniques are important. Believe me, you won’t get any better teacher than the internet for this purpose.

Why will you learn about savings only? Plenty of video lectures and courses are available on the internet to help you learn about investments too.  If you ask for my advice, I will tell you to google BuffettsBooks.com first! You may get a personal touch of learning from Warren Buffett!

Lastly, I have important news for you. The FAFSA (Free Application for Federal Student Aid) for 2020 has already started from 1st October. Apply as fast as you can to get the federal student loan from the education department. Check out this link on how you can apply for FAFSA 2020-21.

Study hard in silence

Let success make the noise!

About The Author

Linda Richardson is a New Jersey-based financial content writer and enduring learner with an ongoing interest to learn new things. She uses that curiosity, connected with her knowledge as a financial writer, to write about subjects valuable to small business. You can find her on Twitter at @LindaRossie9