In this quick post, we’ll share with you 5 smart money management tips for college students.
There’s really no greater sense of freedom than when you’re at college, although for many it’s their first time away from home, and budgeting and money management may be hard to learn.
Many college students find university and college to be exciting times in life. But there’s more to college than just studying and parties; there’s a lot to learn about personal finance while you’re being educated.
College loan debt has proven to be a financial strain for many students, making it more difficult to save for the future, afford a vehicle, and achieve other financial objectives.
Related: 5 benefits of instant online loan
When college students don’t follow money management, they might spend more than they need to. This could make it harder for them to deal with their debt.
We at Owogram explore some of the smart money management tips for college students in this article, which can help you avoid overspending money at times when you need it the most!
Use your student status to your advantage.
Have you ever wondered how you can get a 20% flat discount on Apple products using your student ID? We’ve got you covered! Many vendors offer student discounts and promotions once you show them your student ID.
Quite often, the discount will be listed on the store’s website or social media pages, but you may also simply ask the retailer or the shop if there are any student discounts available.
Common student discounts can be found at movie theaters, restaurants, and retail stores. Student benefit cards are sold by travel agencies around the world to help students save money on travel.
Student membership plans are a common practice among companies that appeal to students. Once you’ve popped a very good deal on your student ID, you can use your savings for another essential!
Some of the major companies which offer Student Discounts:
Reduce your daily food and beverage expenditures.
If you have the habit of getting a coleslaw from a local cafe or ice cream from a fudge shop after dinner, try to cut back! Eating out often can have a detrimental effect on your money in one or more ways.
Daily expenses on products such as meals, beverages, and coffee quickly accumulate. Although it may not seem like much, $5 every day can add up to $700 over the course of the school year.
The best and probably the only alternative is cooking at home regularly. Cooking at home can be a joy at times with friends.
Although it may involve some forethought, it is possible to save a substantial amount of money by purchasing supplies at a local grocery store and reusing leftovers. These small changes can help you save a lot of money and get a better handle on your finances.
Related: How to kickstart your savings this year
Purchase or rent old textbooks.
The average amount college students spend on textbooks has dropped from $700 a decade earlier to $413 in the 2019/20 college year. To put this into perspective, students spend $900 annually on alcohol, which is double what they are spending on textbooks.
In order to cut costs, students are purchasing or leasing moderately used textbooks from websites such as Amazon, eBay, and Chegg, where textbooks may cost half as much as they do at the school store.
Search Amazon for used textbooks, or visit Chegg or Valore, which have a vast selection of used textbooks at cheaper rates than the college bookstore.
Taking advantage of your school’s eBook offerings is another method of saving money.
Online sites where you can buy/sell old textbooks/materials
Creating a Budget
How much money can you possibly spend on different things based on your allowances? We are all aware of how easy it is for late-night pizza trips and online shopping splurges to cause chaos in our finances.
Keeping track of all of these miscellaneous expenditures contributes to effective money management and brings awareness.
Creating a budget for yourself is a critical first step in managing your expenditures and avoiding debt. Think about each type of expense, like fees, housing, school supplies, and food, and rank them from most important to least important so you can focus on the most important things.
By tracking your expenses, you can determine where you spend the most money. This helps you establish a spending limit and adhere to it. Today, there are many online tools that students can use to make a budget and keep track of their spending.
Online budget planners which can help you manage money
Use credit cards wisely.
Thanks to credit cards, we see a lot of college students spending money without any limits. It is important not to make credit mistakes and to view credit cards as an infinite supply of income.
High credit amounts and missed payments can increase the time it takes for students to establish themselves financially after college, as poor credit can affect job searches, apartment rents, and home purchases.
Establishing a consistent record of credit card payments will help students build credit, which will make future loans and purchases for a vehicle or apartment much easier to get.
Our suggestion is to begin with a prepaid card to develop the habit of allocating a limited amount of money in your budget. Keep a physical credit card on hand for emergencies. You can also check out the credit cards built specifically for students.
Some of our student credit and prepaid cards suggestions:
Money Management Tips for College Students (Summary)
These are some of the money management tips for college students. We at Owogram feel that money management is of the utmost importance for college students nowadays.
Most students are taught that they must attend college in order to get a decent job to support themselves. They are not taught about debt, savings, or money management.
By learning the significance of money management, students can achieve financial success before making poor decisions. Instead of taking out several student loans and incurring debt from the beginning, students are able to make smart choices and set themselves up for future prosperity.