“Budget” and “personal finance” used to be words that made most college students tune out with boredom. But according to the Project on Student Debt, the average student graduates with $26,600 of student loan debt, so budgeting and personal finance for college students aren’t issues anyone can just ignore anymore. Here are a few quick tips to help you effectively budget your money while in school:
1. Know your habits and actually keep a budget
We can all repeat the mantra, “I will spend less money, I will spend less money,”; but unless you actually review your habits and make sure you’re staying in the budgetary lines, it won’t happen. Everyone’s particular situation is different, so keep track of your expenses and income for one month and build your budget from there. A website that you can use to get you on the right track for this is Mint.com. The free site helps you track, organize and categorize your spending. This will help you see in black and white where any unnecessary spending is going.
2. Include savings as an expense in your budget
Now that you have put your budget together, take a look at it and see if anything is missing. Chances are you didn’t include a line for savings. Every little bit helps when an unexpected expense comes your way; so try putting a small amount of money into an interest-bearing savings account every month, even if it’s only $20-$40. Websites like SaveUp.com are useful tools for encouragement, because it actually rewards you for depositing money in a savings account. Every time you make a deposit, you are entered into giveaway contests for cars, vacations, money and computers. It also helps you track how much you’re saving so you can pat yourself on the back for a job well done.
3. Rent your textbooks on e-readers if you can
The National Association of College Stores estimates books and supplies cost students $700 a semester. After putting a budget together, this could be one of the larger line items. One way to save in this area is by renting textbooks. Many on-campus bookstores offer the option to rent books, but for those that don’t, Amazon.com now does so as well. The best kept secret for saving money on textbooks is eTextbook rentals. Renting your textbook on a Kindle or iPad can reduce the price of your textbook by half, not to mention the weight of your backpack.
4. Plan meals around saving
If you don’t have a cafeteria meal plan, you most likely have to budget for groceries and dining out. Try sharing groceries with roommates or eating at home for breakfast and lunch. If the average fast food meal runs you $5, you are spending $750 for 30 weeks of school. Imagine how much that number would jump if you were to eat anywhere even a little bit more expensive! There are also a ton of apps for finding happy hour meal and drink deals, but try Happy Hours; the app lets you take advantage of cheap food and drink specials around your school and promotions like Ben & Jerry’s Free Cone Day on April 9.
5. Don’t charge it
On the whole, fewer college students have credit cards than two years ago, according to a recent study by the student loan provider Sallie Mae. Those who have credit cards are doing pretty well with them. Thirty-three percent of college students had a credit card with a zero balance, and 42 percent had a balance of less than $500, the report found. This is good news, and not just because the number one rule of personal finance is don’t buy what you can’t afford. It’s also good because interest rates are frequently much higher for young cardholders, and who wants to pay interest on several weekends’ worth of late-night pizza? Only charge what you know you can pay off every month, although the best bet is to use a debit card rather than a credit card.
Remember
Whether you decide to use one or all of these tips, always remember before buying something new that you are a college student – so live like one. You are in school for an education first and socializing second, so don’t overindulge in life outside of the classroom. Yes, a $5 coffee may sound like a nice reward after an early morning class, but a small purchase here and there can add up to a blown budget before you know it. The more you save now, the better off you will be financially after college.