How to Be Financially Smart in College
According to a TimelyCare survey, the top concerns among college students are personal finances and rising costs. This is not surprising, especially as a college student myself about to enter my third year.
I have had to navigate many challenges, just like all of my peers. I have had to acquire better time management skills, discover new methods of note-taking, and try to get a grasp on math, which I am admittedly terrible at. One of my most difficult challenges has been learning how to be financially responsible while in college.
It is easy for students to add even more to their stress load by thinking about money. How much should you save, if you even have the extra to save? How can you make money? Take it from a fellow student — here is a comprehensive list of how to be financially smart in college.
Make a Budget
The “little treats” we buy ourselves can add up quickly. Buying supplies for college or decorations for a dorm room can also soon leave a bank account looking scary. On top of that, everyone has to buy necessities. Creating a budget is the key to keeping a leash on all this spending.
Budgeting is easier said than done, of course. Everyone comes from different financial circumstances, and not everyone knows how to budget. Thankfully, this is the age of the internet, and we live in an era where there is an app for everything. Many apps allow their users to keep track of their spending by categorizing each time that they tap their card. One of the most popular apps is Rocket Money. The app prides itself on helping its users monitor their subscriptions and save money. As a college student, this can be essential. There are also many paper planners available for purchase if you prefer to organize your expenses by hand.
Make sure to review your budget too. After each month, take time to sit down and assess how the last month went. You can then adjust your budget to fit your needs.
Budgeting is all about willpower and categorization. Make categories for your spending. The categories can be for your grocery shopping and subscriptions. Sticking to what you budget is key as well. It may be tempting to spend a little extra, but stay strong. In the long run, all the money wasted on little treats may be spent on something much greater.
Be a Smart Shopper
Whether you love shopping or hate it, a crucial component of financial responsibility is shopping smart. As an avid shopper myself, I have found countless ways to try and save money, no matter what I am buying. The hardest part of it all is just transforming your strategies into habits.
First, buy used, or better yet, rent. Textbooks are notoriously expensive for college students. A great way to save on all your books is to rent them. If you cannot rent the book, buy it used. Many textbooks are resold online after students are done using them. Sites such as eBay and Facebook Marketplace are full of textbooks. Then, no matter what condition you buy your textbooks, resell them later.
Second, scan those receipts. There are too many apps offering points for gift cards to not scan your receipts. I use Fetch and Upside the most frequently. Both are easy to use and give me points for just scanning my receipt. Recently, I was able to cash out all my Upside points, and it paid for my gas on a weekend girls’ trip.
Third, take advantage of any student discounts offered. Sometimes, it can be tempting to stay quiet at the checkout line, but do not be afraid to ask. Not every place has a discount for students, but some do. Even if it only saves you a few dollars, they will add up over time.
Finally, enroll in rewards programs, which are becoming incresingly common. These programs offer some form of discount to users, at the cost of entering a phone number and getting some emails here and there. But most of us would rather have six extra emails in our inbox if it means saving some cash!
Find a Way to Make Money Back
A key part of being financially smart in college is also finding ways to make money. If you are going to be spending money, it is important to find ways to make back what you spend. Hopefully also have a little extra to set aside in an emergency fund as well.
One of the best ways to make money back is through a part-time job. Part-time jobs are amazing. This is how I have made my money during college. Part-time jobs often allow you to set when you can work so that you can allot yourself time for classes. There are plenty of retail stores, restaurants, and grocery chains that are usually very willing to hire college students. Another great way to get a part-time job is to find a job on campus. If the job does not pay, it may put that money towards your tuition. For a ranked list of part-time jobs, check out this article.
If a part-time job does not fit in your schedule, there are other ways to make money as well. Odd jobs are everywhere, and if you cannot find a posting, put yourself out there. Be a tutor, help someone move, pet sit, or house sit. Pet sitting is a handy gig to catch, as people deeply care about leaving their beloved animals. Other great gigs are picking up delivery jobs with DoorDash, Instacart, or just being a driver through a service like Uber. Jobs like these also allow students to form their hours. Several of my peers do DoorDash as a way to earn money for their bills.
Credit Cards — To Use or Not to Use?
Credit cards can elicit mixed signals. Either people encourage you to get one or tell you to stay away from credit. So, what is a student to do?
As a student myself, I love my credit cards. I use them not only to build my credit score but also to get perks. Many offer rewards or a little cash back depending on where you shop. My credit card, Capital One SavorOne, offers me cash back on dining, entertainment, groceries, and some streaming sites. Just using it a few times a month and making on-time payments allows me to earn rewards, which I can use later on Amazon.
Of course, the key is to be responsible with your cards. Just because there is available credit does not mean you should spend that amount. A great piece of advice is just to use it a few times each month.
Do not apply to a ton of credit cards, either. Applying to too many credit cards can reflect negatively on your credit score. While I recommend getting a credit card if you do not have one already, it is extremely important to be smart about it. Do your research. Apply for a card that is best suited to your needs and gives back to you.
Save Money When You Can
While things seem to be beyond expensive today, saving is now more important than ever. Just putting a little aside each time you make money can be exactly what you need if something happens.
No one wants to have to dip into a savings fund, but alas, life happens sometimes. This is why you have a savings account. If your laptop decides to present you with the blue screen of death, it’s good to have the money aside to get it fixed or replaced.
A savings account does not always have to be a rainy day fund either. You can also set money aside for a goal. Use that goal as a driving force to keep saving money. I view the part of my check that goes into savings as a travel fund. So, when I do get the chance to travel, I have the funds to do it, along with some extra spending money. It motivates me to set money aside, no matter how much it is.
Doing Your Best is Good Enough
Being financially smart in college is a daunting task. No matter what tips you follow or advice you take, money is almost always stressful. Even when I believe that I am handling things well, the idea of a bill can still make my heart skip.
The important part is to remember that doing your best is what matters. Being willing to take that step toward financial responsibility is incredible. Do not be afraid to give yourself a pat on the back, and get those endorphins going!
No matter what, keep your mind clear, and make and save that money. You will thank yourself later.
