How to Save Money in College

College is a time full of expenses, and most people don't have much earning power during their college years. You can absolutely get through college without landing hopelessly in debt – but you'll need to work hard and use all of the options available to you! Start by setting a budget, practicing frugality, and intentionally saving your money.

Method 1

Method 1 of 3:

Living Frugally

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Keep your habits in check. Habits like smoking, excessive drinking, and shopping are all behaviors that can burn a hole into your wallet if you don't monitor your spending. If you're serious about saving, cut down on store-bought coffee too – limit it to say, once a week. It is said that the habits you form in college set the tone for the rest of your life.^{[1]XResearch source}
- Cigarettes and alcoholic drinks are expensive. If you can manage to cut these lifestyle choices, you will find saving much easier. To do this, you may have to surround yourself with like-minded friends.
- Remember – your friends influence how you behave, and vice versa. If you want to form healthy habits, apart from having a strong will of your own, you'll also need good friends to encourage you along the way.
Whenever you have several bills of small denominations, try to exchange them for one larger one – for instance trade out twenty one-dollar bills for one twenty-dollar bill. This may help remind you that you're spending real, significant money. Many people are happy to hand off dollar notes, but think twice before coughing up a twenty. Thus, dealing in larger notes can help you be aware of your spending.
3
Make meals at home, and avoid eating out. Learn to cook. Try to buy food in bulk – grains and vegetables are great staples. Eating out can quickly eat up your savings, even if you're just living off of fast food. Do what's best for your health and your wealth.^{[2]XResearch source}
- Consider preparing the week's meals in advance. Set a "food prep" day—say, every Sunday—on which you make a large amount of something that will keep well throughout the week. Soups, rice dishes, and breads are good for this. If you cook it and store in a fridge, it will last longer than it does fresh.
- Groceries, especially fresh fruit and vegetables, are sometimes sold at lower prices at certain times: stores try to get rid of food that is not fresh enough to sell, but still has a few days in it. Learn when those times are, and stock up on good, healthy stuff.
- Dine out as an occasional treat, not as a matter of course. Spend your money on a truly worthwhile dinner every now and then, rather than fast food every night.
- Fill up on free samples when you go to the grocery store. Learn which stores (Costco, for instance) have daily samples, and take this opportunity to treat yourself to a free meal while you shop.
It can be expensive to buy gifts for all of your friends and family on birthdays and holidays. If you're in a relationship, you may be expected to give even more gifts. Save some cash by getting creative and making gifts, instead of buying them.
5
Buy used textbooks. Check they are not damaged or unsuitable for open book exams, and make sure that each textbook is the version that the rest of the class is using. Your school bookstore might sell used textbooks, or you can browse used textbook retailers online. Try checking Craiglist for textbooks deals in your area. Sell back your textbooks when you're done with them.^{[3]XResearch source}
- Consider simply borrowing textbooks. Share with a friend or use a library copy. You won't have the same unrestricted access that you would if you bought the book, but it will be much cheaper!
- Some textbook shops have membership discounts. Get those if they appear cost effective, i.e. $10 lifetime membership for 10% of all textbooks, and your first textbook is $100 or more, membership has paid for itself.
This is not to say that you shouldn't splurge on a once-in-a-lifetime show – but most college towns are full of interesting events, shows, and gatherings that won't cost you a cent. Look for coupons, Groupons, and discounts. Read bulletins about local bands and shows. Join student clubs that offer opportunities to explore your interests on a budget. Many campus events offer free food.
7
Find a cheap way to get around. If you live very far from your college, and you need to commute, consider whether you can carpool or take public transportation. Consider buying a bicycle (you can often get them used for much cheaper!) or walking to class. Some colleges include a local bus pass as part of the price of admission. Find out whether your school offers any transportation subsidies, and use them to your advantage.
- If you have a friend who goes to school at the same time as you, try to set up a ride-share situation. Split gas and burn less fuel. You can also use a number of carpool websites to find fellow commuters online.
- Consider which of these options will be most sustainable in the long term. Draw your cues from how other people get around your college. If the area is very bicycle friendly, you may want to buy a bike.
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Method 2

Method 2 of 3:

Setting a Budget

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Plan your spending. Review every cost you have, and see if there is a way to do it for cheaper. Make a list of everything you spend over a month, and then look over it at the end of the month to see where you can save money. Balance your "fixed expenses"—recurring necessities like bills, books, rent, food—with the "fluctuating expenses" that make your life more enjoyable.
- Consider putting at least half of your money (after food, bills, and other immediate necessities) into a savings account. This can be an account for fun things, for future security, or for saving up to buy something you'd like to own.
2
Always plan ahead and have a contingency fund. This might seem hard for a student who is mostly cash-strapped, but a small effort might go a long way to help. You might have to budget and deal with unexpected expenses – like repairing a broken phone, or weathering a reduction in the student discount on transit passes. Whatever the surprise may be, that extra cash will save you some misery.^{[4]XResearch source}
- The other reason to do this is to give yourself a financial buffer to focus on schoolwork. If school gets especially busy, you might want to take some time off of work to catch up. In this situation, the current month's paycheck may not be as juicy as the months prior – but since you have some extra, you can manage to pull through.
3
Weigh the pros and cons of a meal plan. Many colleges offer meal plans so that students can eat reasonably-priced meals at campus dining commons or affiliated restaurants. This can be an exercise in frugality: if you get a meal plan, you'll need to carefully budget how much you eat, and when. Consider whether you have a kitchen to cook your own food, or whether there are any other factors that make a meal plan irrelevant.^{[5]XResearch source} Meal plans usually come in two forms:
- "Meal credit" plans: You may get a certain number of "meals" per semester, meaning you can enter the dining hall a pre-set number of times and eat to your heart's content. This can be a cost-effective option if you can eat large, nutritious meals when you do visit the dining commons – and maybe even sneak some food out to your dorm room.
- "Debit" plans: Some schools offer something similar to a debit account, where you pay for each individual item that you purchase. Each time you eat, your account is charged until your balance reaches zero. Loading your card up with a pre-set food budget may help you learn how to allocate your spending. Your school may also offer a combination plan with some debit and some meal credits.
4
Get a job. If you can set up a steady flow of independent cash, you won't have to worry as much about saving money. Not only does it teach you how to interact with people who are working full-time, it also adds experience to your resume. Make sure that your job isn't a hindrance to your academic studies. You are, after all, a college student. Academics comes first. The jobs are just a way to facilitate your main responsibility of learning.
- Get a job at your college. Anything from working in the library, the IT department, the bookstore, campus dining is good experience. These jobs may not pay as much as some off-campus jobs, but they have the benefit of convenience and job security. Many campus jobs are part-time, and allow you to choose the hours that fit best with your class schedule.
- Get a job outside of college. Babysitting, modeling, freelance writing, secretarial work, and tutoring are all great choices. Wait tables in a restaurant or pour coffee in a cafe. Consider all of the options available to you. You might be able to make more money working off-campus, but you also might need to commute, and your employer might not always make your education the first priority.
- If you do get a job, try to save at least 20 percent of your income.^{[6]XExpert SourceAra Oghoorian, CPA
  Certified Financial Planner & AccountantExpert Interview. 11 March 2020.}
5
Get an internship over the summer. Internships are a great way to get working experience and save money. Ideally, look for internships that pay. Banks, law firms and big corporations generally pay students well for summer internships. If corporate life is not your thing, go for a humanities-focused internship: a building project, a curator program, or a magazine.
- Consider that internships often don't pay as much as full-time summer jobs, but they may give you the opportunity to do something more relevant to your goals. If you're pressed for cash, you might need to take a full-time job in construction, service, etc. Weigh the costs and benefits of taking an internship.
- If the internship doesn't pay, see if you can get a stipend from your school or a scholarship/grant from your home country. Alternatively, look for student grants from big NGOs and corporations. These grants help out students who do meaningful volunteer work or arts-focused internships.
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Method 3

Method 3 of 3:

Building Credit and Managing Savings

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Open a bank account, if you haven't already. Try to establish a good relationship with one of the bankers. Check for annual fees and processing fees – banks will usually waive these fees for college students. Make sure that you understand all of the required fees before you open an account with a bank. Aim for zero fees so that your bank account doesn't work against you.
- Ask the banker which wealth growing strategies are available for college students. For instance, a popular choice is to periodically put money into a time-deposit and earn interest throughout the year. This also encourages a saving habit.^{[7]XResearch source}
- If you get a credit card, make sure there is no annual fee. If there is, get it waived by your banker.
2
Check your bank account periodically. Keep track of what you're spending money on, and make sure that there's always a bit of money in your account. Make sure that checks don't bounce, as invalid checks incur processing fees.^{[8]XResearch source}
- Consider setting up a low-balance notification. Some banks will send you text or email alerts when your balance falls below a set point: for instance, $50. This way, you'll know when you're running low, and you can plan your spending accordingly.
3
Evaluate your options for loans and financial aid. Many colleges work with banks to help you take out student loans; some colleges even offer financial aid to students that have trouble affording the price of admission. Visit your university's website and understand which choices are available to you. Understand that if you take out loans, you are putting yourself (often tens of thousands of dollars) into debt. Consider whether you want this money hanging over your head for years after you graduate – or whether you have any options.
- Financial aid programs usually require that you prove a low-income background. You may need to keep up a minimum GPA requirement in order to keep the money flowing, and you may need to meet other requirements; say, living on campus, or participating in certain organizations. FAFSA (Free Application for Federal Student Aid) is the most common place to start applying for financial aid.^{[9]XResearch source}
- Apply for student loans through the Department of Education, or speak directly with a representative at your bank. Ask your parents, your teachers, and your counselors for advice before you take out loans. Always be aware of the consequences.
Save it for emergencies, if you can afford to do so, and try to build a solid credit history. You can also use them for the needs and most guaranteed expenses on your budget. For instance, if you live alone and in a distant place from home, groceries might be an important part of the budget. With that in mind, you can set aside cash for groceries, then use your credit card to make those food purchases. At the end of the month, when the bill comes in, you'll have the money sitting in your account to pay off the entire bill.^{[10]XResearch source}
5
Do not pay the minimum pay on your credit card. Clear your card charges monthly, and pay in full. Credit card charges are ridiculously high – often upwards of 30%. If you ever find yourself starting to incur credit card interest charges, you will quickly find yourself deep in debt. Avoid the mistake from the start, and clear your monthly credit card bills in a timely manner.
- Save first, spend last. If you're tempted to incur credit card debt, do not get a credit card and spend cash only. Do not spend what you do not have.
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