Making ends meet as a student is difficult. On the one hand, you have tuition to pay, but even if you’re lucky enough that your school is heavily subsidized, you’ll still have to come up with the money for textbooks and rent. And on the other hand, you want to go out and have a good time, too. When you’re faced with so many expenses, it’s easy to make rash decisions and end up paying for them long after you graduate. The following guide will walk you through the most common money mistakes students make and provide some simple strategies to keep your finances on track while in school.
1. Don’t Ignore Budgeting
A common mistake for students is they don’t keep a budget. Budgeting is very boring, but it’s critical to ensuring that you can live without panicking about your bank account. A budget tells you what’s coming in and exactly what’s going out, so you’re not scratching your head and wondering: ‘Why is my bank account empty two weeks before payday?’
Make a list of your income – a part-time job, scholarship, or financial aid – and track your expenses – rent, groceries, entertainment, etc. Stick to your budget to keep your expenses under control. Ensure you have a little left over for accidental expenses, such as a broken laptop, an emergency flight home, or a tricky essay. You can hire the most trusted essay service to help you with the latter. TopEssayWriting can write any paper for you, no questions asked.
2. Be Careful with Credit Cards
Cards are useful when one has no cash, but become a terrible debt trap if not carefully handled. Many students get caught up using credit cards without knowing how interest works. Several small purchases can grow into an enormous debt if they are not carefully monitored. If you have a credit card, keep the balance low and pay it off monthly to avoid incurring interest charges. Resist the temptation of the credit limit – it’s not a freebie.
3. Avoid Impulse Spending
Impulse purchases are often the culprits that bring down our budgets. The latest gadget, a pizza, a snack at the cinema … these little ‘treats’ might not seem like a big deal, but they can amount to a significant expense over time. Have a moment of honesty with yourself before you buy something you don’t really need, and certainly don’t buy it if it’s outside your budget. A good strategy is to institute a 24-hour rule for non-essential purchases, meaning that you wait a day and see whether you still want it. If you do, and it’s within your budget, go for it. If not, you’ve dodged a bullet.
4. Understand Student Loans
Student loans can be a great way to finance part or all of your education, but they’re not free money. Some students don’t realize how much they’re borrowing or how long it will take to pay off the debt. Take time to understand the terms of your loans, including interest rates and repayment plans.
5. Save on Textbooks
It is well known that textbooks can be very expensive. However, there are a few ways that you can lower the cost. Avoid buying brand-new textbooks from the campus bookstore.
Here’s a quick list of ways to save on textbooks:
- Buy used or rent textbooks from websites like Chegg or Amazon.
- Check if your school library has copies available.
- Use digital textbooks or share with a classmate.
- Sell your textbooks after the semester ends.
6. Plan for Emergencies
Life happens. Stuff goes wrong. You weren’t expecting an expensive medical bill or that your brakes suddenly needed to be replaced. Having a small emergency fund of a few hundred dollars can save you from having to go into debt to pay for these expenses.
7. Take Advantage of Student Discounts
As a student, you are entitled to many discounts. From computer software subscriptions to college transportation and entertainment, student rates are often slashed in half. All you need is your student ID. Find deals on things you already pay for – streaming services, clothes, or even gym memberships. These savings can really add up.
8. Cook Instead of Eating Out
Eating out is convenient but also very expensive. Even if you just order a coffee every day, it can cost a lot. Try to cook a meal for yourself at home instead. Not only will you save money, but you will also eat healthier. Planning your meals and buying food in bulk will lower your costs even more. And if you have roommates or friends, cooking together can be fun and cheap.
Be Smart with Your Money
With a little forward thinking, you can be a shrewd shopper and smart investor without feeling overwhelmed. Avoid spending money on things you don’t need – including luxuries, junk food, and little treats – and you’ll find that you’re saving more, wasting less, and making the most of your funds. If you avoid the temptations of impulse shopping, excessive credit card use, and ignoring your budget, your finances will be more manageable in the long run. Don’t forget to take advantage of student discounts, plan for the unexpected, and stay on top of those deadline dates. You got this!
