Lana Oconnell
Being a university student often means having to balance college fees, tuition costs, books, meals, and entertainment. It can be challenging to budget and manage money, especially when living away from home for the first time. However, learning to save money during university years can help students develop good financial habits and ensure they have funds for personal expenses. This introduction will discuss various strategies for university students to save money, from budgeting and part-time jobs to scholarships and student discounts.
| Characteristics | Values |
|---|---|
| Budgeting | Establish a budget early on and monitor your income and expenses |
| Work part-time | Work 15 hours a week or less to balance work and studies |
| Online classes | Save money on transportation and other costs |
| Entertainment | Opt for free entertainment like movie nights on campus |
| Groceries | Shop at cheaper stores like Aldi |
| Textbooks | Buy second-hand or rent books |
| Student discounts | Carry your student ID to avail discounts on restaurants, travelling, technology, subscriptions, etc. |
| Scholarships and grants | Apply for as many as possible |
| Federal student aid | Fill out the FAFSA form to determine eligibility |
| Save | Open a tax-advantaged savings account like a 529 account or a Roth IRA |
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What You'll Learn
Budgeting and monitoring expenses
Determine your priorities and set a budget:
Figure out your essential expenses, such as tuition, rent, food, and transportation. Allocate money for these categories first. You can use budgeting apps like GoodBudget or YNAB to help you track your spending and set a realistic budget. These apps can also help you identify areas where you can cut back if needed.
Monitor your bank account regularly:
Keep a close eye on your income and expenses. This will help you stay within your budget and avoid overspending. Regular monitoring will also help you identify any unnecessary expenses that you can cut back on, such as eating out too often or buying things you do not need.
Take advantage of student discounts:
Many businesses offer student discounts on a variety of products and services, including restaurants, technology, subscriptions, and travel. Always carry your student ID with you to easily access these discounts.
Save on textbooks:
Textbooks can be expensive, but there are ways to save money. Consider renting or buying second-hand books, or opting for e-book versions, which are usually cheaper. You can also reach out to classmates to see if you can borrow their books or check your university library for available copies.
Compare living options:
Compare the cost of living in a dorm to living in an apartment, either alone or with roommates. For some, living in a dorm may be cheaper, while others may find that sharing an apartment with multiple people reduces their housing costs significantly.
Mastering budgeting and expense monitoring takes time and discipline, but it will help you develop good financial habits that will benefit you throughout your life.
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Working part-time
Finding a Part-Time Job:
There are various options for part-time work that can offer flexibility and accommodate your class schedule. You can look for on-campus jobs, such as research assistant positions or opportunities through the Federal Work-Study Program. Off-campus options include working at local cafes, restaurants, or retail stores. Additionally, freelance work or online jobs can provide remote work opportunities that fit well with your studies.
Working Hours:
It is important to maintain a balance between work and studies. Try to keep your work hours down to part-time, as students who worked 15 hours or less per week were more likely to graduate within 6 years, according to the National Center for Education Statistics. Prioritize your education and be mindful of not taking on too many work hours that may interfere with your academic commitments.
Income and Budgeting:
The income from your part-time job can help you build financial discipline. Consider creating a budget to monitor your income and expenses. Apps like GoodBudget or YNAB can help you track your spending and identify areas where you can cut back. Allocate a certain amount for weekly expenses and put the rest into savings. This will help you build a financial cushion and work towards your future financial goals.
Student Discounts:
Remember to take advantage of your student status and utilize student discounts whenever possible. Carry your student ID with you, as many places offer discounts for students, including restaurants, transportation, technology, subscriptions, and entertainment. These discounts can help you save money on everyday expenses and social activities.
Time Management:
By following these tips and maintaining a balanced approach to part-time work and studies, you can successfully save money during your university years.
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Scholarships, grants, and financial aid
Scholarships and Grants
You can generally apply for as many scholarships and grants as you want, so be sure to apply for as many as you can find. Scholarships.com, Fastweb, and Scholarship Universe are great websites to find scholarships that you are eligible for. Scholarships and grants are a form of funding that doesn't need to be repaid, and they are not just for incoming first-year students. So, if your financial situation changes during your degree, you can apply for scholarships and grants to help cover your costs.
Federal Student Aid
The Free Application for Federal Student Aid (FAFSA) determines what need-based scholarships, grants, and federal student loans you're eligible for. You'll need to file this form each year you plan to enrol in a college or university to be eligible to receive this aid. Even if you didn't qualify in the past, it may still be worth filling it out to see if your and your family's financial situation merits aid. Many schools also use the FAFSA or its private counterpart, the CSS Profile, to determine what school-sponsored, need-based financial aid you qualify for.
Retirement Accounts
Even though retirement account is in the name, Roth IRAs can be valuable accounts for college students. Roth IRAs offer the flexibility to make penalty-free withdrawals of any contributions you made before retirement (but not any investment earnings). You can only contribute as much into it for the year as you earned. So, for example, if the current Roth IRA contribution limit is $7,000 but your campus job paid you $1,000, the maximum you could contribute to your Roth IRA is $1,000. Consult with a tax professional if you want help understanding whether this is the right account for you.
529 Accounts
A 529 account is a tax-advantaged savings plan that allows you to set aside money for education. Funds in a 529 account grow tax-deferred and can be withdrawn tax-free for qualified education expenses. Plans may offer the ability to deduct contributions, depending on what state you live in and open an account in. This could be a good option for funding any future education expenses or repaying student loans. However, make sure to consider your entire financial picture, as you may be better off repaying loans now than contributing to a 529, depending on your loan's interest rate.
Federal Work-Study Program
Depending on your financial situation, you may qualify for the Federal Work-Study Program, which can help you find a job on campus. Working part-time as a research assistant, tutor, barista, or other paid jobs while in college has benefits beyond adding to your bank account. According to the National Center for Education Statistics, students who worked 15 hours a week or less were more likely to graduate within 6 years than students who worked more—and even students who didn't work at all.
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Student discounts and deals
There are also other ways to save money on entertainment as a student. For example, instead of going to the movies, which can be pricey, you can make use of a friend's streaming service or opt for free events on or near campus. You can also take advantage of your university's amenities, such as free gym access, movie nights, or extracurricular activities that your college may subsidize.
In addition to entertainment, there are student discounts for other essential expenses. For example, many grocery stores offer student discounts on specific days, so be sure to inquire about these deals. When it comes to textbooks, buying new ones can be expensive. Instead, consider renting, buying second-hand, or purchasing e-books, which tend to be more affordable. Websites like Chegg, Amazon, and Abebooks offer cheaper alternatives for textbooks.
Lastly, when it comes to transportation, some campuses offer free shuttle services to nearby stores or places within proximity to the campus. Taking advantage of these services can help you save money on transportation costs.
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Cheaper alternatives for textbooks
Textbooks can be incredibly expensive, but there are several ways to save money in this area. Firstly, it is worth checking whether the texts are actually required. In some cases, professors may list certain books as 'required' when they are, in fact, optional or supplementary. It is worth clarifying this before purchasing.
Secondly, it is worth looking into second-hand books. Used books are often much cheaper than new ones, and they sometimes contain helpful highlighting and notes. You can buy used books from other students or online. You can also rent books, which is often a cheaper alternative to buying. Websites like Chegg.com and Amazon.com offer textbook rental services.
Another option is to buy international editions of the textbooks you need. These are usually paperback and intended for use overseas, but the content is exactly the same, and the prices are much lower.
You can also save money by buying digital textbooks, which are usually available for a fraction of the price of physical textbooks. Project Gutenberg is one such place where you can access more than 60,000 free ebooks, which you can download to a Kindle or read online.
Finally, you could join or start a textbook swap group, either on campus or online. This will allow you to buy and sell textbooks with other students without paying for shipping.
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Frequently asked questions
There are many ways to save money as a university student. Firstly, you should try to budget and limit unnecessary spending. You can also take advantage of student discounts, buy second-hand books, and cook at home instead of eating out.
Many students take on part-time jobs or freelance work to earn extra money. You can also sell things you no longer need or apply for scholarships and grants.
You can save money on university fees by graduating early, taking some credits at a community college, or applying for financial aid and scholarships.
