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(From Financial Literacy Blog) – If you are a college freshman, you’ve likely just survived your first week of college. Between settling in, attending classes, and making new friends, there’s been a lot to do. With so much going on, keeping tabs on your finances may not be high on your list of priorities. However, the financial habits you develop in your first year of college can heavily influence your fiscal well-being post-graduation. Here are five ways to save money and develop smart financial habits during your initial semesters at school:
Search for Student Discounts
It’s no secret that college can be very expensive, so take advantage of every financial perk that’s available. The student ID you just received may be the key to saving money for the next four years or more. Many retailers, local venues, restaurants, and services near college campuses often offer student discounts. The next time you head out for a bite to eat or catch the latest movie in the theater, ask if they offer a student discount and have your college ID handy. The savings will add up over time. In addition, by actively looking for discounts, you’ll learn the value of hunting down good deals. If you’re looking for a list of businesses offering student discounts in 2019, you can find one here.
Create a Budget
If you don’t already have a budget, now is the best time to create one. If you already have one, it’s time to re-work it, as your spending habits and responsibilities probably have changed since arriving on campus. Assess what income is coming in throughout the month, such as a paycheck from a job, assistance from student loans and grants, or any financial support from your parents. Once that step is completed, map out all the spending you anticipate doing for the month. The goal is to make sure you’re not spending more than you have coming in. If you are, you’ll need to cut back on your expenses or find avenues for other income. Don’t forget to put aside money for emergencies, too! Experts recommend stashing away three to six months’ worth of expenses in the event of an emergency, but we understand that can be a struggle for college students. Always save whatever you can.
Choose Carefully
Between housing, meals, textbooks, and transportation options, you will need to make numerous decisions during college. While many of these decisions were made before the start of your first semester, you may be able to choose differently in the spring or before the next school year. Make sure you find out exactly how much you’re paying (or already paid) for each option this semester. Ask yourself, how much your on-campus room and board costs and determine if it would be cheaper to buy your own groceries or rent an apartment nearby? How much could you have saved if you bought a used textbook instead of new? Are you paying for a parking spot and insurance on a vehicle you use sparingly? Would public transportation save you money each month? The answers to these questions may surprise you, and could encourage you to explore new approaches to cut costs and increase your savings.
Utilize a Credit Union
If you don’t already have one, your first year of college is a great time to open a checking and savings account. Ask your local credit union if they offer Free4ME Checking or accounts designed for your age group. Free4ME offers perks like overcharge refunds, a free bill-payer, and more. In addition, by joining a Maine credit union, you get access to the state’s largest surcharge-free ATM network. Saving in college isn’t always easy, but your credit union can help you cut costs with lower fees, better terms and attractive perks.
Minimize Student Debt
One of the most important things you should do as a first-year college student is make an effort to minimize your student debt as much as you can. According to the Student Debt Relief website, 71% of college graduates take out loans to fund their education. If you are part of this majority, make sure you’re only borrowing what’s required. Don’t use your loans to fund your social life or an extravagant campus lifestyle. While it may seem like free money, you’ll have to pay it all back and more because of interest. Plus, if you spend all of your loan money, you’ll have to borrow more. Consider getting a part-time job or signing up for work-study positions if you qualify to help fund purchases that aren’t school-related. If you can, take those earnings and start making small payments on your student loans now. Although payments on many loans aren’t required until after graduation, starting now can help you in the long-run. Even $10 a month can help you chip away at all of the interest you will accrue.