Money-Saving Strategies For Students
Among the major challenges a student can face, figuring out how to save money as a student can often top the list. It’s possible you might be attending college or enjoying life as a high school student. Nevertheless, learning money-saving strategies is an essential skill you need to pick up. In this guide, we will enlighten you on various ways to save money that will ease your financial burdens, and hopefully allow you to enter adult life with a bit more understanding of how saving money works.
How much should a student have in savings?
Regardless of whether you are a college student or a high school student, it is important to establish a savings account. But how much money should you aim to have in your savings? The answer depends on your personal expenses and financial goals.
In general, students are recommended to have at least $1,000 in their bank account for emergencies. Some may also save for tuition costs, school supplies, or other educational costs. Whatever your financial goals are, maintain an attitude of saving money regularly. If you’re in a tight spot economically, a single emergency can put you in a precarious position, that at worst can take decades to get out of.
While it’s far less important for high school students who still live with their parents, with so many options that allow you to make money online, you can start leveraging your skills to earn some additional income. Also, if you can combine an income stream together with your school studies, you’ll find that you have an easier time entering your college years.
What is the 50-30-20 rule?
The 50-30-20 rule is a simple and effective budget budgeting principle. It involves dividing your after-tax income, spending 50% on needs, 30% on wants, and saving the remaining 20%.
In this context, attending to needs implies paying for necessary living expenses, such as utility bills, school fees, groceries, and monthly subscriptions. Spending money on wants could be fun activities like visiting stores or enjoying a coffee shop outing. Saving the remaining 20% will significantly contribute to your financial success.
If you don’t know how to start saving money as a student, the 50-30-20 rule is a trusted and tried method to save some cash. By subscribing to this method, you’ll be able to afford all of your necessities and save some cash in the process, without completely denying yourself the little pleasures, such as going out to eat or grabbing a coffee from your favorite place once in a while.
How do college students survive financially?
College students often face financial challenges due to elevated educational costs and living expenses. However, there are numerous strategies to save money in college. If you attend college but find yourself short on funds, here are some strategies you can use to improve your financial situation:
1. Buy Used Textbooks
New textbooks can cost way too much money. You can buy used textbooks, which offer the same information at a greatly reduced price. Although this is one of the best money saving tips for US college students, not every course allows you to do this. Make sure that your college professors approve of their students buying used textbooks, otherwise it can lead you to only losing more money.
2. Use Student Discounts
Many retailers and establishments offer student discounts. Always carry your student ID or school ID when shopping or attending events and use these discounts wisely. This is particularly important for any public transport that offers student discount. In many cases, you can save up to 50% of the ticket price for simply having your student ID on you. In addition, many restaurants offer special deals for students, meaning that you can pay far less money as a student for your favorite meals when going out.
3. Get a Part-Time Job
If your class schedule allows, consider getting a part-time job for a student. This not only helps you make more money, but it also provides relevant work experience. There are many ways that you can make money online without leaving your house, and it can be a great way to get a little bit of extra income as a student. Also, consider getting into some side hustles that make money to improve your personal finance.
What is the best way to save money as a student?
There are many ways to save money as a student. If you need a little bit more help on how to cut financial corners with small daily decisions, here are some practical methods that will save you a lot of cash in the long run:
1. Opt for Home-Cooked Meals
Opting to prepare your own meals instead of eating out can save you a significant amount of money. Instead of going out or ordering delivery, try preparing your own food in the similar style. You might find that preparing your favorite restaurant meals at home is actually much cheaper, and they taste better as well.
2. Use Public Transportation
If possible, use public transportation or ride-sharing programs available in your school instead of maintaining a private vehicle. Although most public transport requires monthly fees to use, most of the time it still comes out cheaper than managing your own car. Also, most cities offer serious discounts for students who travel with the public communication, so you can put that to use as well.
3. Avoid Impulse Purchases
Resist the temptation and try to avoid impulse purchases. Instead, put the money in your savings account or towards your financial goals. You might find a lot of attractive offers during the school year, but try to think every purchase through before you pull the trigger.
4. Try Making Money Online
Nowadays anyone can make good money with access to the internet. There are many well-paid remote jobs that you can effectively freelance, meaning that you can easily do them in your spare time. Also, make sure to check out all the different ways to earn free cash online.
5. Get a Roommate
To cut costs on living expenses, consider getting a roommate to split rent and utility bills. Although it’s nice to have your own space, another person renting out a free room at your place will significantly cut the costs of living for you. Check if any of your friends don’t need a roommate or a place to stay.
6. Use School Facilities
Use facilities such as the school gym and library instead of spending money on gym memberships and book purchases. These greatly vary depending on which school you go to, but most big name universities and colleges offer very impressive school facilities for students to use either fre of charge, or with a small payment.
7. Sell Things You No Longer Need
You can earn some extra cash and save money by selling items you no longer need. Visit your local thrift store and capitalize on your unnecessary possessions. You probably don’t even realize how much money you have in unnecessary items at your place, so you can both unclutter your space and make a couple of bucks in the process.
8. Use Free Services
Use free services offered by your school. These could range from audio editing software, fitness classes to mentor sessions. Check out which free services your school offers and make sure to take full advantage of them.
9. Avoid Overdraft Fees
Try not to overdraw on your checking account to avoid unnecessary overdraft fees. Overdraft fees are one of the quickest ways to lose your money as a student, so make sure to pay close attention to your spending.
10. Regularly Review Your Budget & Spending
Reviewing your monthly budget is a key strategy in saving money. Doing this helps you keep track of your spending, analyze your habits and adjust if necessary. A proper budget can net you some significant savings, if you know what you’re doing.
In conclusion
learning how to save money as a student is not only a crucial skill for survival in college or high school, but it also prepares you for post-academic financial management. Don’t think of these money-saving strategies as denying yourself life’s pleasures. It’s about making choices that get you closer to your financial and personal life goals. As a student, when you save money, you are making choices that will make your life better in the future.
