31 Money Saving Tricks for Students

Keep in mind that the key to financial success is being aware of how you’re spending your money and cutting out the bad habits.

 

 

Do you have fine wine tastes on a cheap beer budget? It’s ok – most college students are living on a budget. If not, they’re likely students getting themselves into a cycle of debt.


While neither is fun or easy, you can become smarter about the way you spend your money. Keep in mind that the key to financial success is being aware of how you’re spending your money.


Also, know that there’s a difference between being cheap and having spending savvy. There’s nothing wrong with living within your means, rather than beyond.


Stretch your dollar further with the following money-saving tips:


1. Buy or rent used textbooks and sell last semester’s books back.


2. Don’t make impulse purchases.


3. Never go grocery shopping when you’re hungry.


4. Limit the number of times you eat out monthly.


5. Cut out vices – smoking and binge drinking are terrible for you and expensive.


6. Always pay bills on time to avoid late fees.


7. If you have a credit card, pay it off as quickly as possible. (It’s good to establish credit, but a bad credit score follows you everywhere.)


8. Walk, use public transportation or ride a bike instead of having a car.


9. Live with others so you can split rent and utilities.


10. Cut out expensive cable packages you don’t need.


11. Consider more basic phone packages and plans or plans that include unlimited texting with free incoming calls


12. Don’t buy the most expensive college meal plans. Figure out what you actually consume and get the correlating package.


13. Shop where they offer student discounts. There are so many places that offer discounts to students with a school ID.


14. Look into a campus gym versus a gym in town. Many colleges offer memberships for free or at a reduced rate for students.


15. When planning meals, make dinner with friends and split the cost of groceries. Often times, you’ll be cooking too much for one person anyway!


16. Sell what you no longer use or need. There are plenty of stores and web sites, likePoshmark and Craigslist, where you can sell your used clothing, furniture or tech items.


17. Don’t buy unnecessary school supplies. Why buy cumbersome notebooks when you can type on your laptop? It’s better for the earth anyway!


18. Don’t buy books you will only need for a short period of time – check them out from the library instead.


19. Take advantage of what your campus has to offer in terms of activities, rather than spending money on going out. Many campuses have an array of museums, offer movie nights and other social events for cheaper or, sometimes, for free.


20. Skip expensive spring break and summer trips – look into alternatives, like volunteering, instead.


21. Wait to get a pet until after college – a pet can become very expensive. Not only do you have another mouth to feed, but veterinary bills are costly. If you love animals, there are plenty of shelters that need volunteers.


22. Go to class. You’re paying for it and skipping is like throwing money out the window!


23. Drink water. It’s free and better for you, anyway.


24. Make your own coffee. While coffee shops are convenient, they charge hefty prices that really add up over time.


25. Open a savings account that earns interest. Credit unions have fewer fees and are great for students.


26. Use a free tool, like FinAid’s Student Budget Calculator or the one offered byMint.com, to keep track of your finances. It’s harder to be frivolous when you see where your money is going.


27. Never take out a loan for anything that’s unrelated to your education.


28. Don’t buy music. Use the free services like Spotify or Pandora offer.


29. Look into class requirements and the options for testing out of classes. Why pay for a class you could easily test out of?


30. Consider becoming a resident advisor. Many get free room and board.


31. Avoid buying name brand items. Purchase generic items whenever possible. They are exactly the same item, at a highly reduced price. You can even check the ingredients to make sure!

Saving for college made easy

Saving enough for college might seem impossible. But families like yours are doing it every day, and it's easy for you to start too.

YOU CAN DO IT

This fall, millions of American students will enter college for the first time. For many of them, their college journey began when loved ones started planning and saving to make the college dream a reality.

Like you, these families had lots of questions along the way. And that's why we're here—to help you get started with your college planning. It only takes 3 steps, so you can begin today.

Find the right kind of account for your college savings.

Choose investments for your account.

Open the account online.

Let's go!

TEST YOUR KNOWLEDGE!

·         When it comes to saving for college, there are a lot of myths out there. What's true? What's false? We have the answers.

·         Only rich people can save for college.

·         Scholarships or financial aid will pay for college.

·         I can start saving no matter how old my kid is.

·         I'll lose the money if I don't use it for college.

·         It's easy to get started.

·         I'll miss out on financial aid if I save for college.

QUESTIONS? NO NEED TO RAISE YOUR HAND—ASK AWAY

ü How much am I going to need?

You don't need very much to get started, and the total amount you save completely depends on your family's goals and resources. It's something you can think about either now or as college approaches—but in the end, it's probably not as much as you think.

See the average cost of college

Find out how much you should save for college

ü How much do I need to know about investing to manage a college account?

Some types of investments can be managed for you, like age-based options offered through 529 plans. But it's also good to have some basic investing knowledge—it's not hard to learn, and it will help you save for any goal. We'll teach you the few important things you need to understand.

Learn the right ways to manage your college savings

ü How should I balance college saving with retirement and other goals?

There's a definite order in which you should approach financial goals. We've spelled it out.

Learn how college saving should fit into your other priorities

ü Am I going to lose this money if I don't use it for college?

Nope. Depending on whether you get tax breaks for your college savings, you might have to give up some of your earnings, but not any of the money you've saved.*

Find out what happens if you don't end up needing your savings

When's the best time to start saving for college?

The earlier you tackle college saving, the better off you'll be in the end. The best time is now.

See when you should start saving.

ü What's the best kind of account for college savings?

For most people, it's a 529 account, and here's why—tax breaks equate to more money in your account and less you have to borrow. But there are also other options.

Find out which college savings plan is right for you.

8 simple ways to save money

Tips on saving and investing to pursue your financial goals

Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. This step-by-step guide can help you develop a realistic savings plan.

1. Record your expenses

The first step in saving money is to know how much you’re spending. For one month, keep a record of everything you spend. That means every coffee, every newspaper and every snack you purchase for the entire month. Once you have your data, organize these numbers by category—for example, gas, groceries, mortgage and so on—and get the total amount for each.

2. Make a budget

Now that you have a good idea of what you spend in a month, you can build a budget to plan your spending, limit over-spending and make sure that you put money away in an emergency savings fund. Remember to include expenses that happen regularly, but not every month, like car maintenance check-ups. Find more information on creating a budget.

3. Plan on saving money

 

 

Taking into consideration your monthly expenses and earnings, create a savings category within your budget and try to make it at least 10-15 percent of your net income. If your expenses won't let you save that much, it might be time to cut back. Look for non-essentials that you can spend less on—for example, entertainment and dining out—before thinking about saving money on essentials such as your vehicle or home. Learn more money-saving tips from Bank of America.

4. Set savings goals

 

 

Setting savings goals makes it much easier to get started. Begin by deciding how long it will take to reach each goal. Some short-term goals (which can usually take 1-3 years) include:

• Starting an emergency fund to cover 6 months to a year of living expenses (in case of job loss or other emergencies)
• Saving money for a vacation
• Saving to buy a new car
• Saving to pay taxes (if they are not already deducted by your employer)

Try the Bank of America savings goal calculator to see how long it will take for you to reach your saving goal.
Long-term savings goals are often several years or even decades away and can include:

• Saving for retirement
• Putting money away for your child's college education
• Saving for a down payment on a house or to remodel your current home

5. Decide on your priorities

Different people have different priorities when it comes to saving money, so it makes sense to decide which savings goals are most important to you. Part of this process is deciding how long you can wait to save up for a goal and how much you want to put away each month to help you reach it. As you do this for all your goals, order them by priority and set money aside accordingly in your monthly budget. Remember that setting priorities means making choices. If you want to focus on saving for retirement, some other goals might have to take a back seat while you make sure you're hitting your top targets.

6. Different savings and investment strategies for different goals

If you're saving for short-term goals, consider using these FDIC-insured deposits accounts:

• A regular savings account, which is easily accessible
• A high-yield savings account, which often has a higher interest rate than a standard savings account
• A bank money market savings account, which has a variable interest rate that could increase as your savings grow
• A CD (certificate of deposit), which locks in your money at a specific interest rate for a specific period of time

For long-term goals consider:

• FDIC-insured IRAs, which are built for purposes such as retirement savings. If you’re not sure how much money you should set aside for retirement, give the Merrill Edge retirement calculator a try.
• Securities, like stocks and mutual funds. These investment products are available through investment accounts with a broker-dealer (e.g. Merrill Edge). Remember that securities, such as stocks and mutual funds, are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank, and are subject to investment risks including the possible loss of principal invested.

7. Make saving money easier with automatic transfers

Automatic transfers to your savings account can make saving money much easier. By moving money out of your checking account, you'll be less likely to spend money you wanted to use for savings. There are many options for setting up transfers. You choose how often you want to transfer money and which accounts you want to use for the transfers. You can even split your direct deposit between your checking and savings accounts to contribute to your savings with each paycheck. Thinking of saving as a regular expense is a great way to keep on target with your savings goals.

 

8. Watch your savings grow

Check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly. With these simple ways to save money, it may even inspire you to save more and hit your goals faster.

10 things every student should know about money

The start of university is the first step to financial independence for many. So what do new students need to know about money?

The A-level results will be the first step to university for many young people – and the start of financial independence. But there are 10 tips that every 18-year-old should be armed with before they start in October:

Banks are not your friends

This is the top tip from consumer campaigner Martin Lewis, founder of MoneySavingExpert.com. He says: "The sign in front of the member of bank staff may say 'money adviser' but don't be fooled – it should read 'salesperson'." Often their primary job is to sell you their products, and they will only do it from their own, usually poor range. Often the person you're talking to is paid based on how many things they can tie you into. Ask yourself: do you want to be the loyal customer whose business is taken for granted, or the customer whose business is hard won with better deals? Do your own research before getting any financial product. Ask yourself whether you need it, is it worth it, and have you checked whether it's the best deal on the market."

Be boring. Budget

Yes, it's boring, but if you're going to live on the money you've got, and afford a social life too, you need to learn to budget. Make a weekly or monthly budget and stick to it. Try using an online student budget calculator, such as the one on the Ucas website, which allows you to key in all your income and outgoings. Other tips:

• Try not to use your debit card to pay for things. It's easier to keep track if you pay cash. When going out drinking, only take with you the amount you're happy to spend that night, and no plastic cards.

• Before you buy something, ask yourself: Do I really need it? Can I afford it? Can I get it cheaper elsewhere? If any one answer is no, think again.

• Don't use cash machines that charge for withdrawals. Find out which ATMs charge and which don't.

Don't get a car

It's a money pit. Particularly for young males – insurance costs can be crazy (£5,000 a year or more). And if you're off to university, you can't get away with going on mum or dad's insurance, or "fronting" as it's known. In any case, the other costs of car ownership can stack up: vehicle tax (£200+ a year), petrol (who knows), and if you're buying an old banger, the repair and tyre replacement bills can be huge. Then there's the minimum £50 or so for the AA or RAC to rescue you when it goes wrong.

Mobile phones are another money pit

But we know you won't listen to sense on this. Still, don't just throw money away – if you've already got a smartphone, or can get hold of one from a sibling who is upgrading, you can save by switching to a sim-only tariff. You can get 300 call minutes, unlimited texts and 500MB of data for £10.50 a month from Vodafone (via websites such as simonlycontracts.co.uk), or unlimited packages for £21 a month from T-Mobile.

Travel bills are extortionate

One of the biggest surprises students report is how much they have to pay on trains, buses and tubes. So get a 16-25 Railcard – it costs £28 for one year, or £65 for three, and gives you a third off UK rail fares. Sadly, NatWest has made it harder to get one for free on its student account. Or take the bus – check Megabus for low-cost deals.

Debt isn't bad, but bad debt is

This is another of Martin Lewis's favourite lessons. "Grandparents may tell you never to borrow, but sadly that isn't realistic in this modern world. If you want to go to university or own your own house, you're almost certainly going to need to borrow at some point. What scares me about people who encourage debt abstinence is it forgets that not all debt is the same, and the most important skill is working out the difference between good and bad debt. Work out whether the repayments are affordable, ensure the borrowing is necessary, not just lusted for, keep the amount to a minimum and check that it is at the cheapest rate possible. Debt isn't bad, but bad debt certainly is."

Money isn't everything, but goals are important

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Simon Nixon, founder of MoneySupermarket.com, one of Britain's most successful entrepreneurs reputedly worth around £400m, says: "Read the papers, watch the news and follow some of the great money pundits on Twitter and online. Whether it is getting into the habit of saving regularly with the goal of helping pay for further education, the deposit for a new home, or buying your first car, having a goal can keep you focused when the urge to spend creeps in. If you are planning on using credit, do so wisely – remember, it is not free money and it does need to be repaid. Getting it wrong can have an impact for the rest of your life. But money isn't everything – making a lot of money shouldn't be the sole motivation you have, or you'll miss out on a lot of the best experiences along the way."

Pre-loading to save on bar costs

We're not endorsing this, but we can't ignore what hundreds of thousands of young adults do to cut the cost of going out. Pre-loading (otherwise known as "pre-drinks") is about buying cheap alcohol from the supermarket or off-licence and drinking it at home before you hit the pub/club. It can be a cost-effective way of boozing – but health campaigners warn of the dangers. "Drinking while getting ready with your mates might seem normal, but drinking a lot of alcohol before you go out could make your night take a different direction from what you've all got planned. You might not make the gig or party, be too ill to get in the taxi or club and spend the night in the loos being sick, or worse – in hospital," says Drinkaware, a charity that promotes responsible drinking.

Don't pay tax

Students in the UK are liable for income tax and national insurance contributions (NICs) on their earnings, like everyone else. If you work for an employer during the term, you'll pay income tax if you earn over a certain amount – £8,105 for the tax year 2012-13. You'll also pay NICs if you earn over £146 a week. But if you are a full-time student and only work in the holidays and your total income for the year is below the £8,105 personal allowance, you won't need to pay tax through PAYE provided you fill out form P38(S), available from your employer. Any grant you get, as well as most scholarships and bursaries, are non-taxable so you can get any or all of them and still keep your full personal allowance. When a scholarship comes from your employer, any income for periods of work (eg in the holidays) will be taxable and attract NICs in the normal way.

If you work, don't let your employer take you for a ride

Make sure you are being paid the minimum wage. There are different levels of national minimum wage – the current rate for those aged 18 to 20 is £4.98. For those aged 21 or over it's £6.08, rising to £6.19 on 1 October, and the rate for 16- and 17-year-olds is £3.68.

And remember, your employer is obliged to pay you the sum you've agreed – and to pay you on time.

Let's Start With A Small Business (Side Income)

 

What kind of business should you start?

As a student, it's important you choose the kind of business you run carefully. You'll need to be able to fit it in with your studies and, while we wish it were different, it's unlikely bank managers or investors will take your idea seriously before you graduate.

Kindly to remind you that make sure you can handle it with your study. Otherwise, you will not be able to balance between studies and doing business.

Try these:

• Promotions
  

If you like music, running a club night is a great way to make money: because you can often hire venues for free, as long as your punters spend an agreed amount at the bar, your overheads are low and because budding bands are usually so keen to get any exposure they possibly can, they'll sometimes accept a crate of beer and a promise of a repeat booking as payment. Just make sure you're good at marketing: you'll need to leverage your best social media and flyering skills to get the word out. Check out our sales and marketing section for more advice.

• Freelancing

From dancing to writing to coding, if you're good at something, you'll be able to freelance. Freelancing is flexible - you can do as much or as little work as you need to do, cutting down during exam time and building up more during the holidays. Take a look at FreelanceStudents.co.uk for opportunities.

• eBay business

eBay is the ultimate online marketplace. While it can be tough, and there's a lot to learn about earning a living on it, if you get it right, there's no limit to the amount of money you can make. And you don't even need storage space for your products - see our drop shipping guide to drop shipping for more information. If you hand-make your products, have a look at Etsy too.

• Odd jobs

As a student, you have an advantage over 9-to-5 workers because you get to see daylight on a regular basis. This means you're perfect to do those odd jobs people don't get around to during the weekend - whether it's cleaning, DIY or dog walking.

• Tutoring

The fact you are studying means you are an expert in one subject. Use your expertise to teach the next generation. It isn't just GCSE students who need tutoring: this is a chance to put that Grade Eight violin or modern dance certificate to use.

• Online business

Websites are the ultimate student business: they cost very little to start, can be run from your bedroom and, because you're at university, if you don't have the skills to design the site, you probably know someone who does. There's a lot to learn about starting a web business, but if you get it right, success could be just around the corner. Smarta has loads of content about the tech sector here.

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Major Factors That Influence Student Savings

        

FAMILY BACKGROUND

Family is one of the most important role in student’s life where the parents are teaching them to handle their savings when they are already start their life campus. This is meant by their children are responsible to manage the financial since they are not living with the family when they start to further their study. For example, a long distance between the students and their family is one of the factors or limitations for the parents to control their money. Thus, the students should be alert and knows well about their savings rather than spend more on the things that is not beneficial for them.

PEER INFLUENCE

Peer influence is also can be one of the major factor that influence the saving behavior among Ungku Omar’s students. In this case, it can be concluded that most of the student are influenced by their friend’s lifestyle and does not think too much about the savings as they thought that they still young and free to do anything besides than got the financial support from their family.


Based on common interest and value, as has been shown by studies demon-staring the role of peer influence in substance use (Donohew et al. 1999; Oetting & Beauvais, 1987). Student will tend to compare their saving consumption level with their reference group and lead them to change the attitude.According to Cohran et al. 2008, impulsive and present-oriented individuals with little self-control,student is more likely to spend according to their preference and eventually lead to overspending and inability to save for a “rainy day.




SELF CONTROL

Does the self-control influence of savings behavior among the student’s life and current financial needs of the school and in university institution is very different. Financial needs when studying in higher education institutions is much higher than needed in schools. If students are good at managing money, then they will not face financial problems in the education and learning process will go well Siti Alida et.al 2007. According to Cohran et al. 2008, impulsive and present-oriented individuals with little self-control, student is more likely to spend according to their preference and eventually lead to overspending and inability to save for a “rainy day”.

LACK OF FINANCIAL KNOWLEDGE

In recent year, Sabri and MacDonald (2008) had found that, due to the lack of financial knowledge/literacy, university students in Malaysia are not likely to save upon they received their student loans and spent aggressively for non-academic purpose. As a result, many of them are having financial problems. Meanwhile, skills and ability is needed by students to manage their financial resources and it can help them for their daily life activities as they help people to deal with the day to day financial matters and make the right decisions (Kempson, Collard, & et al, 2006).

Recommendations On How To Control Your Money

 

I have identified some recommendations that can be used on how to use or control the money management among polytechnic students.  The recommendation that provided are recommendation to responsible party, recommendation to university and recommendation to students. The recommendation given at least  will decrease the rate of financial problems among students.

Recommendation to students

            Students are encourage to make a monthly budget as these will help them to know how much money has been spent and where the money goes to. The monthly budget is very important to those who doesn’t know how to control their money and students should be able to understand the concept of needs and wants.

Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter and health care. Wants are goods or services that are not necessary but that we desire or wish for .It is also can be defined as something that we have an options whether to own it or not . For example, one needs clothes, but one may not need designer clothes. One does not need toys, entertainment and gems. One needs food, but does not have to have steak or dessert.

            Besides that, students should control themselves from being overspending the loan which is Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) that are provided by the Ministry of Finance or any kind of loan as they didn’t have any occupation and salary yet. Some of the students are not from the rich family background and this can be a motivation and reminder for them to control their money and don’t put any burden to the family.

            Last but not least, friends are the most influence people around the students and this will lead them to follow whatever kind of their friend’s lifestyle. In this case, the researcher make a suggestion to always remind themselves and know their limits on spending the money.

Recommendations to University

Distribution policy loan / scholarship student of each semester should be modified to a periodic distribution of every month. With this policy, students can control their spending and be cautious when shopping to avoid problems of lack of money. If they no money received during the month, they have to wait next month and this makes their financial planning students will practice prudent financial management.

Provide an overview of financial management methods to student polytechnic because many students who receive scholarships or student loans at this stage. In addition, graduates will also finish their studies and subsequent work. Once they get the first salary, then that's when his knowledge of financial management is becoming increasingly important to adopt as more variable factors to be taken into account

Maybe for some students or prospective students, student loan is not an option but the only method shall pay the tuition fees and so on. However, there are times when borrowing money is not enough to cover other essential expenses of students on campus.

Recommendation to responsible party

External parties should play a role in the review of financial problems among students. For example, outsiders can organize campaigns to overcome the financial problems of students. Furthermore, the bank can provide students can join the campaign for the mushroom stock savings benefit for saving and thereby to help students shop. Apart from the bank, the polytechnic can also create a campaign for students to shop carefully and not wasteful in their financial management to study at the polytechnic. Next, the influence of peers in the students' expenses are also helpful in overcoming this problem and apart from the parties, the students themselves should have the properties to save on daily expenses.

5 Steps to Manage Student Finances

1. Open a bank account. 

This may seem obvious but if you don't have one, you are going to have a tough time managing your finances. Start off with a checking and savings account.

2. Set financial goals.

Setting financial goals is a smart choice and can be very rewarding. Instead of wandering aimlessly, you have something to strive for and a clear path for getting there. To set financial goals, first define what your goals are. Write them down and set milestones along the way to help you achieve them. Prioritize your goals and put together a plan of action.

3. Create a budget

Creating and following a realistic budget helps you avoid making purchases you can't afford, missing payments or defaulting on your loans. These mistakes can hurt your credit history and therefore your ability to: rent an apartment, borrow to purchase a home or car, or most importantly, get a job. To create your personal budget, use our calculator.

4. Pay yourself first.

Making money – and spending it – can feel very rewarding. However, saving can help you reach many of your financial goals. From every paycheck, automatically deposit a set amount of money into your "emergency fund account" and your "regular savings account." Starting small is okay; you can always increase the amount in the future.

After paying your monthly bills, consider putting any extra money in your savings account immediately rather than waiting until the end of the month to see what is left over. This will prevent you from spending your extra cash on unnecessary purchases that can interfere with meeting your financial goals. . Compound interest helps you reach your goals faster.

The Impact of Compound Interest

Saving $1 a day

	No Interest	3% daily compounding	5% daily compounding
Year 1	$     365	$371	$374
Year 5	$ 1,825	$1,969	$2,073
Year 10	$ 3,650	$4,256	$4,735
Year 20	$ 7,300	$10,002	$12,542
Year 30	$10,950	$17,757	$25,413

 Saving $5 a day

	No Interest	3% daily compounding	5% daily compounding
Year 1	$1,825	$1,853	$1,871
Year 5	$9,125	$9,844	$10,366
Year 10	$18,250	$21,282	$23,676
Year 20	$36,500	$50,009	$62,710
Year 30	$54,750	$88,786	$127,065

5. Spend responsibly.

Small purchases can really add up. Take a look at the chart below. Try to minimize these types of costs - not only will you save money - you will also live a healthier lifestyle.

Item	Frequency	Cost Per Unit	Monthly Cost	Annual Cost
Coffee	5 x a week	$3	$60	$720
Takeout/Pizza	4 x a month	$15	$60	$720
Movies	2 x a month	$20	$40	$480
Vending machine snack	3 x a week	$1	$12	$144
		Total	$172	$2064

6. Don't overborrow. 

 

If you need to borrow, whether it is a student loan or a car loan, you need to make sure you are borrowing within your means. Read these strategies on responsible borrowing.

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