How to Save Money in College: 5 Tips for College Students

8/5/24  | Emily Knuteson, Relationship Banker

Summer is coming to an end, back-to-school supplies and lists are popping up left and right, which means a new school year is about to begin. Back-to-school is an exciting time, but that doesn’t mean you shouldn’t be prepared on all levels, and college is no different. You’ll need back-to-school supplies, but they may be very different from your K-12 lists. You’ll need to be prepared to pay for school, housing if needed, class fees, and even textbooks. Here are some tips to help save some money before and during your college years:

1. Apply for FAFSA Every Year

FAFSA is the “Free Application for Federal Student Aid.” Filling out this form ensures that you get all the financial aid you are eligible for, including scholarships and grants. The funds you may receive from your FAFSA application can help cover tuition, room and board, class fees, and even textbooks. This way you can focus your personal funds on other college and life expenses.

2. Create a Budget

Paying for college is no small task between tuition, housing, food, and then having enough money to have fun with friends. The best way to maneuver this tricky task is to sit down and create a budget. Getting financial aid will help your personal finances spread further for other expenses. After you know if you’ll be receiving financial aid, get a feel for your other expenses. Break down your income and expenses to know how much you can spend on groceries, eating out, activities, gas, etc. PNC has an insightful article on categories that your expenses may fall into and how to break down wants vs. needs that you can find here. Having a budget in place can help you mindfully spend your money without digging yourself into a hole of debt.

3. Consider All Options Before Jumping into Anything

College forces us to make a lot of big decisions in a relatively short time; where to go to college, where to live, what to major in, making new friends, how to supply food and more. Take a deep breath and consider all options before jumping into a decision. For example, housing can be a huge worry for a lot of students. On campus dormitory living is an option. Don’t forget to look at how much a room will cost for a semester and any requirements that a dormitory may request like a meal plan or a certain area of study. Another housing option is off-campus living. Off-campus may look cheaper, but don’t forget to look for “hidden finances” like utilities, laundry and other bills. Off-campus can also become a cheaper option when having multiple roommates to help with rent and groceries.

4. Get or Keep a Part Time Job

Having a steady income, no matter how big or small, is always helpful to offset some of your college expenses. Many college campuses and surrounding areas have part time jobs designed for students to still be able to take classes while working. The difficult task when working and taking classes is finding a schedule that allows you to take needed classes, work enough hours, and still have time to study and enjoy your college experience. Work enough to make having your part time job worth it but be careful not to burn yourself out with too many big things on your plate.

5. Used Vs. New

One easy way to offset some college expenses is shopping used versus new items. This applies to many things like furniture, clothes, and most importantly textbooks. Many classes have cheaper options for textbooks like digital books, but there are other classes that require physical textbooks. The easiest way to offset these requirements is to buy used textbooks when possible and enjoy new textbooks when needed. If you need to supply your own furniture for any living situation, buying used furniture can be much cheaper than buying brand new items. Look up donation stores, use Facebook marketplace, check yard sales, and reach out to family or friends getting rid of their furniture. I would use the same logic for clothing, buy used when you can and only buy new when necessary.

College is a big change and can cause a lot of stress for all students. Just remember you are not doing it alone. If you set yourself up for success, you can enjoy all that college has to offer you and not be anxious over your finances. Prepare yourself early, get signed up for your classes, and appreciate the opportunities that fill your future!

ABOUT THE AUTHOR
Emily Knuteson is a Relationship Banker at Altabank. She loves exploring marketing concepts and leaning more about the world of banking.