The transition from high school to college is one that can have its growing pains. For many, it is the first time in their lives that they have the freedom to make their own decisions—both personal and financial. It’s important to assess where you are financially and create a plan that will help you ball on a budget. Here are some quick tips to help you save money throughout college!
A Guide to Scholarships and Grants
It’s no secret that going to college can create quite the bill. But there are ways to make it as cheap as possible through scholarships and grants. Unlike student loans, these types of aid do not need to be repaid.
Understanding Scholarships
Scholarships are typically merit-based and are awarded based on a student’s achievements, talents, and interests. So whether you excel in the classroom, in sports, or in the arts—there’s likely a scholarship out there for you. They can come from local organizations, companies, or colleges; you just have to look. Reach out to your local guidance counselor for help finding scholarships to apply for.
Understanding Grants
While scholarships are based on merit, grants are based on need. College grants can come from organizations or from the state or federal government. The U.S. Department of Education offers the most well-known college grants. The Federal Student Aid program, also known as FAFSA, allows you to input income information to see if you qualify for any grants, scholarships, or other programs to help trim the cost of educational expenses.
It is strongly recommended by guidance counselors that every student apply for FAFSA, even if you believe you may not qualify. Completing the FAFSA can open doors to various forms of financial aid that can help reduce your overall cost of attending college.
Navigating Student Loans
As of July 2024, 42.8 million borrowers have federal student loan debt. After you’ve applied for scholarships and grants, and if you still need money to pay off expenses, consider using a loan to help cover the rest. More often than not, students use loans. It’s essential to be mindful and not borrow more than you need or can afford to pay back.
If you applied for FAFSA, you should receive an offer for a loan amount that you can borrow. Remember that you do not have to accept the full loan amount offered. It’s up to you to determine how much you need to borrow and how much you will borrow. Keep in mind that any loan must be paid back with interest likely added to the initial loan amount.
Types of Student Loans
There are two main types of student loans: federal and private. Federal student loans typically offer lower interest rates and more flexible repayment plans than private loans. Additionally, they may provide options for loan forgiveness under certain circumstances. Always explore federal loan options first before considering private loans.
Assess Your Financial Situation
The first step in saving money is to see how much your financial situation allows you to save. What are your monthly expenses? Things like tuition, books, rent, utilities, and transportation are non-negotiable costs that you have to pay. Add these up and determine what your hard costs will be.
Then it’s time to determine your flexible costs, such as food, entertainment, subscriptions, clothes, etc. Estimate what your monthly expenses should look like. Understanding your financial landscape will provide a solid foundation for making informed decisions about your money.
Income vs. Expenses
Once you have an estimate of your expenses, how much money are you bringing in? Do you have a job? Loans, grants, or scholarships? Money saved? Calculate your monthly income, then subtract it from monthly expenses. Once you have that total, set a reasonable goal to save each month.
This exercise not only clarifies your financial situation but also allows you to see where you can cut back on discretionary spending. You may find that small adjustments, such as limiting dining out or reducing subscription services, can add up to significant savings.
Manage Your Money and Keep Track of Spending
Checking accounts are a great way to manage your money and keep track of your spending. UKFCU’s Student Rewards Account lets you manage your money and practice financial responsibility with 5% cashback on all debit purchases and no overdraft fees.
Take advantage of an interest-accruing savings account to set aside money for your financial goals. Storing money in a savings account helps you separate your money used for daily transactions from money you want to save for a rainy day, vacation, or car.
With a Prime Share Savings Account at UKFCU, you can earn interest on the money you set aside and easily transfer money between checking accounts with Online and Mobile Banking. The best part is it’s only $25 to get started on your savings goal.
Tracking Your Spending
To gain control over your finances, consider using budgeting apps or tools to track your spending. These tools can categorize your expenses, helping you identify where your money goes each month. Awareness of your spending habits is crucial in making informed financial decisions.
Regularly reviewing your spending will enable you to adjust your budget as necessary and ensure that you’re staying on track with your savings goals.
Use Student Discounts to Your Advantage
Society knows college students typically are stretching a tight budget. The good news? You’d be surprised how many businesses offer student discounts. Here’s a list of some businesses that provide student discounts:
- Spotify: Offers Hulu access included with your subscription.
- Apple Music: Enjoy Apple Music streaming at a discounted rate plus Apple TV+ for a limited time.
- Amazon Prime: Offers students six months of Prime for free. Get a yearly Prime subscription at a discounted rate after that!
- Chick-fil-A: May vary by location, but you can usually score a free drink with any purchase when you show your student ID.
- Movie Theaters: Need a study break? Catch a movie at AMC or Cinemark at a discounted price.
- Levi’s Jeans: Score 15% off online purchases on some new threads!
- The North Face: Students can save 10%. The discount also applies to physical locations, minus outlet stores.
How to Find Discounts
Don’t hesitate to ask businesses about student discounts when you’re making a purchase. Many stores and restaurants offer discounts but may not advertise them prominently. Also, consider downloading apps that aggregate student discounts, making it easy to find savings wherever you go.
Gently Used Still Works
Just because something isn’t brand new doesn’t mean it isn’t valuable. When possible, opt for used textbooks or rent a textbook for your class. Chances are most textbooks will be reused and still be in great condition. You can also sell the textbooks to an incoming student when you no longer need them.
Thrifting is another excellent option for students. Vintage clothing and accessories are in style, and thrift stores often have unique finds at a fraction of the retail price. You can save big by thrifting as opposed to buying clothes at retail prices. Vintage mom jeans and dad sweaters are the new trend anyway!
The Benefits of Buying Used
Buying gently used items can save you money and reduce waste. Consider purchasing secondhand furniture, electronics, or even appliances. Many college students upgrade their gear at the end of the school year, so there are often great deals to be found.
Don’t Live Outside Your Means
Food is essential. That’s a fact. But food doesn’t have to be expensive in college. Most universities offer meal plans that can help make budgeting for food easier. Find a meal plan that works for you or try to buy groceries and cook at home to avoid paying those high restaurant prices.
Take Advantage of Campus Resources
You’re paying the university, so take advantage of all its resources. From the student centers, fitness centers, library, and even fellow students—you won’t need to shell out extra cash to stay in shape, watch a movie, or read a book. The deals are already out there waiting for you.
You don’t need to spend more money than you have to impress people, buy the newest electronic gadget, or eat out every night. The college experience is one-of-a-kind and can usually be very cheap. If you are ever feeling alone in your experiences—don’t. More often than not, your classmates are in a similar financial situation as you. Practicing how to save money now will pay dividends in your future.
Look for Campus Events: Many colleges host events that include free food. Don’t be shy and look for these events that can get you a slice of pizza for a couple of minutes of your time. Additionally, consider meal prepping to save both time and money throughout the week.
Establishing a Side Hustle
As college expenses can add up quickly, consider exploring a side hustle to increase your income. There are numerous opportunities available, including freelance work, tutoring, pet sitting, or part-time jobs that fit around your class schedule.
Benefits of a Side Hustle
Having a side hustle can not only boost your income but also provide you with valuable experience and skills that can benefit you in your future career. Additionally, the extra cash flow can help ease financial pressures and allow for a more comfortable college experience.
- Freelancing: Websites like Upwork or Fiverr allow you to showcase your skills and connect with clients looking for freelance work. Whether you’re a writer, graphic designer, or programmer, there’s likely a market for your talents.
- Tutoring: If you excel in a particular subject, consider tutoring other students. It can be a rewarding way to earn money while reinforcing your own knowledge.
- Gig Economy: Platforms like Uber, DoorDash, or Instacart allow you to work on your terms, making it easier to fit your job around your classes and study schedule.
Financial Wellness Leads to Happiness
Learning how to manage your money effectively can lead to greater peace of mind and happiness during your college years. By following these money-saving principles, you can reduce financial stress, focus on your studies, and enjoy your time in college to the fullest.
From creating a budget and saving for emergencies to utilizing student discounts and exploring side hustles, there are numerous strategies you can implement to take control of your finances. Additionally, making informed decisions about loans and planning for your future can set you on a path to financial success.
At UKFCU, we’re here to support you as you navigate your financial journey. Our team is ready to provide guidance, resources, and services designed to help you achieve your financial goals. For more information about how we can assist you, contact or visit us today!
