Are you a college student who’s finding ways to save enough money to fulfill their personal desire? If you are, you have stopped at the right place! College expenses indeed burn a hole in your pocket. From student loans to hostel fees, costs pile up so quickly, and before you realize it, you have no money left! Even worse, you are piled up with debt. So how do you deal with such a financial crisis as a student? Well, that is precisely what we will discuss in this post. Keep reading for top tips and creative ways to cut down your expenses and save money as a college student.
Why Start Saving Money As A College Student?
Financial problems are one of the major problems college students face.
According to a survey, it has been found that more than 60% of college students run out of money during a semester. Simultaneously, 76% of respondents said they have gone broke at some time during college.
True, college is indeed one of the best times in anyone’s life. However, it is also one of the most confusing and critical times. When you are in college, you have all the time and energy in the world to enjoy your life, but the only thing limiting you might be the missing dollar.
Money is a necessary tool to enjoy, have fun, and do everything we love. Unlike working adults, college students have no constant income source to live their lives independently.
The only way they can get some money is through their parents, i.e., limited pocket money. Even that’s not enough because most college students end up spending most of it on their assignments, projects, or daily meals. There is hardly anything left for them to save.
Here are some top reasons why start saving money in college should be your priority.
1. Financial Freedom
Financial freedom doesn’t mean earning only money once you graduate. The true definition of “Financial Freedom” means making decisions without stressing its financial aspect.
Students have to take huge loans to attend college and get stuck in the vicious loop of the debt cycle, which could cost you substantial mental peace.
Here are some facts about student debts:
- 70% of college students graduate with debt on their shoulders.
- The average high school graduate leaves school with around $30,000 in debt.
Imagine the stress and financial burden they must have to carry until clearing the full debt.
Saving enough money during college will prevent you from carrying the burden of paying debts, and you can pay it soon after graduation. Also, you don’t have to live from paycheck to paycheck when you start working.
2. Better Saving Skills
Have you ever seen working adults contemplating saving once they start earning money? It’s no brainer that they fail to save money even after earning enough because of not knowing how to budget their monthly spendings.
Saving money in your college saves you from committing the same mistake. You learn to segregate your expenses and the income when you start saving. Indeed, you might fail at it at first, but it’s always better to fail fast.
Not only will you know the art of saving, but you will also learn the value of money and steer clear away from impulsive purchases.
Life is uncertain! You never know when the emergency calls. Whether it’s a medical emergency or helping a closed one, monetary stress is the last thing you want to worry about in troubles.
Saving enough money as a college student will shield you from unnecessary stressors whenever dealing with a challenging situation.
For instance, you won’t even have to think twice before helping a friend financially in their emergency if you have enough saving funds. Instead, it will make you happy and content that you could help out someone financially when they needed it.
Impulse shopping is on the rise. Apparently, in 2018, around half of the purchases carried out by 18 to 24-year olds in the United States resulted from impulse buying.
One of the reasons for impulse shopping is a lack of self-control. Learning financial self-control is imperative for achieving your long term goals.
Here are some examples of how financial self-control can help you in the long run.
- Pursuing your dream education.
- Buying your dream house.
- Getting your desired car.
- Paying for emergency medical policies.
16 Creative Tips To Save More Money For College Students
Money-saving is a skill, and once you know how to do it properly, you’ll never run of money in emergency events.
However, saving money can be boring for people who like to spend money on mindless stuff. That’s why we have come up with some creative tips that will motivate every college student to save money.
These tips are exceptionally feasibly and could be implemented by teenagers to adults even.
Investment Options To Save Money In College
1. Invest in Cryptocurrency
Cryptocurrency seems to be the next big thing of this century. By investing a small amount of money in crypto can potentially be 10x or even 100x in just a few years.
For example, if you save $100 in your bank account, it could merely grow to something substantial in a couple of years. Whereas, if you invest the same $100 in cryptocurrency, the growth can be multi folds.
However, you have to upskill yourself and make informed decisions and learn how to trade so you can increase your gains and decrease your losses.
Some of the trusted vendors or websites where you can trade crypto are:
2. Invest In Stocks & Mutual Funds
Investing in mutual funds is an effective way to build wealth in the long run. The process is simple. You can invest a tiny amount from your savings with SIP mutual funds every month.
Also, since mutual funds are much less risky than stocks, college students can easily invest in them and withdraw money accordingly.
3. Deposit In Bank To Earn Compound Interest
Compound interest means you’re reinvesting the interest amount that you gained on the principal. This way money grows!
Always deposit a small amount of your savings every week in your bank account. When you start saving early, you develop a good habit, which will surely benefit you when you become an adult with a steady income.
Shopping Habits To Save More Money In College
4. Be A Smart Shopper
Be smart with your shopping habits. Many roadside hawkers are selling branded clothes at a cheaper rate than malls.
If you want to buy branded clothes, you can buy them from these roadside shops. You will easily find original pieces that have been rejected by the manufacturer for some minute flaws like improper stitches, broken seals, etc. Shopping with local hawkers instead of big malls can help you save a lot of money.
5. Shop From Thrift Stores
Thrift shopping is one of the best tips to save college students money as it’s a sustainable way to buy items.
Apart from the fact that you will find all sorts of pre-loved items at cheap rates in thrift stores, many thrift stores are run by non-profit organizations. In a way, you’ll be saving money while supporting a cause at the same time.
6. Go For Discounts
Whenever you have to purchase anything, wait for the discounted days to come. Online websites have many college items, including reference books. Always use coupon codes while shopping online.
Even when you shop local, try to bargain for a discount. This way you will be able to save some amount of money.
Also, buying in bulk will help you save a lot. Consider going for student discounts as many shopkeepers offer them on bulk purchases.
Other Ways To Save Money As A Student
7. Sell/Rent Your College Books
If anything, college books really build up at your expense. It’s more affordable to rent college textbooks and save lots of money in the long-term.
Instead of buying books, rent them or if you really need one to your own, consider buying second-hand books as they can save money too.
Also, you can sell your used textbooks on several platforms and earn money from that too!
Here are some of the websites that can help you rent/sell your campus books:
- Amazon Textbook Rental
- Campus Book Rentals
- Barnes and Noble Textbook Rental
- Text Book Rush
8. Enroll In A Job or Become A Freelancer
There are so many opportunities available at your disposal in today’s world. If you want to save more money while studying in college, consider taking a part-time job. This way, you’ll get an edge over your peers while getting a job after graduation too.
Also, you can start your own online business without investment. Consider selling some online services if you don’t want to invest a penny in your business.
Make these following websites your best friend:
9. Plan Out Your Meals
College is expensive, even more for students living alone and have to buy food from outside every day. This piles up on their expense and eating outside food every day can be unhealthy for the body.
There are some readily inexpensive meals students can plan a week to cut out on their food expenses. Make yourself some delicious healthy meals and enjoy the money saved!
10. Have A Piggy Bank
Having a piggy bank is really a cute and creative way to save money as a college student. One practical way to do it would be to put the remaining money after making certain purchases.
Do it regularly for a year and deposit the accumulated money in your bank account on new year’s eve. This way, you’ll also get to start your year in a happy mood.
11. Cut Out Luxuries
Reduce the number of times you purchase food from your canteen or an eatery outlet. Instead, pack your own homemade snack. If you are too bored to do that, you can always switch to fruits. Cut out on purchasing luxurious items like cellphones, laptops, clothes, etc.
12. Don’t Go Out For Party
Millennials these days are always up for parties, especially college students. All that clubbing, drinking, and smoking can pinch a deep hole in your pocket. On top of that, partying all night doesn’t even add value.
Instead, why not do the same thing more enjoyably and sustainably so that you don’t have to shell out so much money?
Bring the party to your place and cook everything on your own. Do it healthily to have an idea about where your money is going.
13. Keep A Journal To Track Your Expenses
Keep a check on your own accounts and track your spendings regularly. Maintain a journal and always make notes of any purchases. At the end of the month, evaluate your spending and savings.
14. Travel By Public Transport
Having your own car can be a costly affair due to the parking fee, insurance, repairing, fuel, etc. Traveling by public transport to reach college is a feasible way to save money daily.
If you really need personal transport, consider getting a bike instead of a car. A bike will cost you much less than a personal vehicle.
15. Debit Card Instead Of Credit Card
Opt for debit cards instead of credit cards. A credit card gives you the freedom to spend all you want first, and then they end up charging you a hefty amount along with interest.
On the other hand, a debit card makes you pay from your own savings, and every time you spend, your bank will send you a message about your balance. This will help you stay on track and reduce your spending and focus more on saving.
16. Online Streaming Services
Many students spend their money on online streaming services like Spotify, Netflix, amazon prime, etc. Doing this can take a toll on your monthly expenditure. If possible, go for student discounts or share one account with your friends.
Earning and saving money is a great way to become independent while in college. But remember, don’t let your studies be affected in any way. With proper time management and a little bit of planning, you can ace the art of saving money without any effort.
To start saving money in college, you need to learn to start earning money. Check out our article on how to make money while in college. What are your thoughts on how to save money?
Let us know them in the comments section below. Also, stay tuned with us by subscribing now.
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Key Takeaways On How To Save Money In College
- College is expensive, and it can really impact someone with a considerable debt afterward.
- Statistics show that 60% of students run out of money during a semester, and 76% have gone broke during college.
- Saving money in college is necessary because it allows one to enjoy financial independence after graduation.
- For instance, it can help someone pay their debts as soon as they leave college.
- Keeping track of your expenses shapes you into a person with better saving skills.
- Saving money as a student will prevent you from unnecessary stressors whenever dealing with a challenging situation.
- It can help you pay in emergencies, whether it’s medical or personal emergencies.
- Lastly, you learn to control impulse purchases whenever you know the art of saving money.
What are the benefits of saving money in college?
Saving money in college has innumerable benefits. For instance:
- You can pursue your dream education.
- Start your own dream business.
- Buy your desired house.
- Invest in skills.
- Going on your dream vacation.
What are some extremely feasible ways to save money?
- Shop from thrift stores.
- Always opt for student discounts.
- Keep a piggy bank.
- Plan out your meals.
- Rent your college books.
- Travel by public transport.
Can I do a job to earn and save more money?
Yes, you can if your schedule permits. In fact, you can take a part-time job or start as a freelancer on platforms like LinkedIn, Upwork, Freelancer, and Fiver.
What financial tips would you give to save money as college students?
- Deposit a specific percentage of your saving in the bank every month.
- Use debit cards more than credit cards.
- Invest a tiny amount from your saving in SIP mutual funds.