A Practical Guide To Saving Money In College

Hello, lovelies! Long time, no see. I spent Spring Break in Orlando to visit Harry Potter World at Universal Studios, which is why I didn’t blog much last week. Sorry about that, but I was busy having fun.

Let’s get into today’s topic: Saving money. I am by no means a financial expert, but what college student is? I think, overall, I have a good handle on my finances and have been really good about saving money these past 2.5 years.

When it comes to saving money, a lot of people don’t know where to start. It sounds simple, right? Just put extra money away and don’t spend it until you’ve reached your goal. But what are some practical steps we can take to accomplish that? I’ve learned several things over the years about saving money, so without further ado, here is a practical guide to saving money in college.

Step 1// Have An Income

The first step to saving money is to make money in the first place. Not many college students have a stream of income when they first start college, so it’s important to get a job if you want to start saving. I was very lazy about this in my Freshman year. Living with my parents allowed me to become complacent because I didn’t have to worry about money. I had the same goals I do now; it’s just that I let the excuse of focusing on school stop me. I have plenty of friends who do the same thing. Now that I’ve moved out, I’ve noticed that I’m much more motivated to work and make money because I actually have to. This, in turn, has helped me save more.

Focusing on school is a perfectly sound decision to make. If you are lucky enough to have the financial support of your parents like I did and still do, it’s perfectly okay to make the decision to not get a job. But if you want to start saving money in college, you need to have a stream of income first.

Here are some action steps you can take:

Get A Job
Apply For Scholarships
Save All Your Gift Money

Step 2 // Set A Goal

Setting a goal is the natural next step. How much money do you want to save? What do you want to save it for? Make a plan for how you are going to accomplish that goal and decide how much time you are giving yourself to save the money.

Here are some examples of savings goal:

Save Enough Money To Move Out Of Parent’s House
Save Enough Money To Study Abroad
Save Enough Money To Go On A Spring Break Trip
Save Enough Money For After Graduation (First & Last Month’s Rent; Travel For Out-of-State Interviews; Furniture; Etc.)

Step 3 // Open A Savings Account

The parents of a close friend of mine opened her bank account when she got a job, but only a checking account. She was in charge of all the money she made, but since all of her money was pooled into one account, it was easy to overspend. (She wanted to open a savings account, but her parents didn’t let her until she was 18. I don’t know why. Bengali parent logic, maybe?).

Have a separate place to put your money so that it’s out of reach. For me, once my money is in my savings account, it’s untouchable. I only use it when I want to spend the money on what I’ve been saving it for (like travel or moving out). It’s easier to overspend when you don’t have to transfer money from account to account and all of it is available to you with just one swipe. Open a separate account to combat this.

(I actually have two savings accounts: an emergency fund and a travel/post-grad savings account. I honestly would’ve opened three, but that felt like too much for right now.)

Step 4 // Create A Budget

I guess this is the obvious next step. How much money do you spend in a month? How much money do you need to spend on rent, groceries, eating out…take into account how much money you need to spend each month in order to decide how much money you are able to save once you use up that part of your paycheck.

I’ll probably end up writing a whole post on creating a budget, but here are some of the bare bones steps to making one.

Calculate Your Monthly Income (Paycheck, Scholarship Money, Help From Parents)
Track Your Spending
Write Down All Your Fixed Expenses (Rent, Car Insurance, Etc.)
Write Out All Your Variable Expenses (Eating out, shopping, etc.)
Write Out Amount You Want To/Have The Ability To Save
Add It All Together And Adjust Things

Related – My College Budget Under $750 (Real Life Example)

Step 5 // Cut All Unnecessary Expenses

Now that you have your tentative budget, cut down on as many expenses as you can. Here are some examples:

Live With Your Parents – I lived with my parents in my first two years of college, which saved me a boatload of money on student loans. If your parents are okay with you living with them and you think you can withstand it, it’s one of the best ways to save money so long as you save the money you would’ve spent on rent.
Forgo The Meal Plan – Meal plans are convenient but incredibly expensive. An easy way to save money is to make your own food and to buy your own groceries. If you plan things out well enough, you could save yourself hundreds of dollars each month.
Eating Out – You don’t have to cut out eating out altogether. It’s important to enjoy life in your day to day, but limit it to eating out once or twice a week instead of spending so much money multiple nights in a row. Wouldn’t you rather be eating out in another country in a few months?
Memberships – Your school probably gives you a free gym membership, so you don’t need to pay for another one. And do you really need Netflix and Hulu? Eventually, we hope to be able to afford all these things, but for now, we college students need to save as much money as we can.
Coffee – I personally think buying coffee is a nice treat once in a while, but that’s because I don’t drink it every day. I have a rule where I will only buy coffee at a coffee shop if I’m with a friend or if I’m actually going to sit there and enjoy my coffee. Otherwise, it’s a no. I’m a big advocate for doing things in moderation. You don’t need to cut out all the things you love in order to save money. Just cut back on it a bit. If you need to drink coffee every morning, find a way to make it in your dorm room.
Clothes – Clothes aren’t really my vice. The thing I splurge my money on is books, but in my defense, I read them all multiple times. I’ve reached the point where I own more than enough clothes and I am one of those people who wear their clothes until they die. My size hasn’t changed enough for me to warrant buying clothes, so if you’re in the same situation, don’t waste your money. If it brings you a lot of joy, go for it, but we don’t need more clutter in our lives.
Manicures – I’ve never actually gotten a manicure. This is just a random example I decided to put here.

Step 6 // Find Creative Ways To Save Money

There are so many creative ways to save money. Here are a few ideas to implement:

Buy snacks in bulk– I do this all the time and it saves me so much time and money.
Invite people over instead of eating out
Be The Designated Driver – That way, you don’t have to pay for drinks or an Uber.
Put all your loose change in a jar
Go to the Dollar Movie Theatre – I love going to the movie theatre. For me, it’s worth the money because it’s an experience I get to enjoy with my friends and family. Even so, there are ways to save money on it like getting memberships or visiting the dollar theatre. Find one near you to get tickets less than a third of the price of regular movie tickets.
Ask for money as presents – It’s honestly more useful to you than the gifts you never use.

Step 7 // Save

Now we’re at the final and most basic step: Put the extra money in your savings account. All the budgeting and cutting back on expenses you’ve done so far won’t do you any good if you don’t put the extra money away. It’s very easy to inflate your lifestyle once you have extra money. Don’t do that. Put the money away for future dreams and endeavors. Your older self will appreciate it.

Well, I guess that’s it. A practical guide to saving money in college. I know it seems hard right now, but the security that comes with having a savings account will save you a lot of stress in the long run and will allow you amazing opportunities to fun experiences in college. I hope this post helps and I’ll see you next time!

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Question for the day – What are some of your tips and tricks for saving money? What are some of your favorite savings goals? I really want to know.