Saving money is a crucial financial goal, enabling everything from building an emergency fund to saving for retirement. Those goals may not be top of mind in college, but the earlier you start, the better. Saving money, even while you’re still attending college, helps you find a firm financial footing and gives you time to benefit from the magic of compounding.
While you may not have much money to set aside in college, you can save a few dollars here and there in several ways. Every bit helps, and you can start saving even if it’s only small amounts. Consider the suggestions here to start saving money in college.
Read more: How much should I save before going to college?
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Housing is always one of the most significant expenses people tend to have in college. The average cost of room and board for a full four years of college is $52,700, according to the College Board.
Because housing is such a substantial expense, it can be one of the best opportunities to save while in college.
One option is to become a resident assistant (RA), which often includes discounted or free room and board. However, the position also comes with responsibility, as you may need to organize events, enforce the rules, and manage conflicts between residents on your floor. If you can handle these duties, being an RA can be a great way to save money.
You may also want to explore housing options off campus, which may be cheaper. For instance, consider renting a room in someone’s home rather than a place of your own. Or you could rent an apartment and split the costs with roommates.
Many discounts are available for students, often on things you need while in college, including retail, school supplies, streaming services, food, travel, and other everyday expenses. These discounts can provide as much as 50% off.
To take advantage of student discounts, carry your student ID whenever you go. If you know you will be spending money, be sure to have your ID. Then, ask if a student discount is available. Every discount adds up, and it’s always worth asking.
Buying new textbooks can be expensive, easily adding up to hundreds of dollars per semester. Fortunately, there are several ways to get your books without straining your budget.
For instance, you can buy used textbooks or rent them from Chegg, Amazon, or your campus bookstore. (If you buy books secondhand or rent them, double-check that they are the same version your class uses.)
Another possibility is to borrow books from your local library. Although you typically can’t borrow library books for a whole semester, you can often renew them several times. If that isn’t an option, you can borrow them during crucial times, such as when studying for an exam.
Buying used items is an excellent way to save money in college. For instance, thrift stores are a great place to find unique clothing and furniture. You can also find household items like kitchen supplies for a fraction of the cost of buying them new.
The main caveat with thrift stores is that the availability of items depends on what people donate. This means you won’t always find the thing you need or the right size, but going with an open mind can sometimes lead to great finds.
Colleges often have a long list of amenities to attract students. For example, your college might offer free access to gyms, health services, and other facilities, as well as free or discounted software, transportation, entertainment, and more.
So, instead of paying for a monthly gym membership or Microsoft subscription, determine the amenities your school offers and whether you can use those services instead. This can lead to a decent amount of savings each month.
Having a car while in college can be convenient, but it likely isn’t the cheapest way to get around. Car payments, gas, insurance, and parking fees can add up to a considerable monthly cost.
There are probably other, less expensive ways to get around campus. For example, public transportation is likely cheaper than driving, and some cities have student transit passes that save you even more.
If there are situations when you do need a car, many colleges partner with Zipcar or other car-sharing services; students often get reduced rates and can rent by the hour.
College is the perfect time to work on basic money management skills and learn how to make your money work harder for you. After all, you probably have more financial responsibilities than you did in high school, but you’re not totally independent just yet. So, you can gain real-world experience with some wiggle room to make a few mistakes (and learn along the way).
One of your top priorities should be creating and following a budget. With a solid budget in place, you can be more intentional about how you spend your hard-earned dollars and avoid wasting money on things like late fees, forgotten subscriptions, and impulse buys.
You should also work on building an emergency fund, which acts as a safety net in case you have a surprise bill or experience a financial setback. With an emergency fund in place, you can rely on your extra savings to cover a major expense instead of taking on expensive debt. And know that it’s OK to start slow — even $50 a month will go a long way toward building an emergency fund over time.
Finally, be sure your savings are growing as fast as possible. Open a high-yield savings account, where your balance will earn interest at a competitive rate. Some of the best high-yield savings accounts today still offer above 4% APY versus just 0.41% for the average savings account.
Why does this matter? Say you deposited $1,000 in a high-yield savings account at 4% APY. You’d earn over $40 in interest over one year. That’s free money that requires no extra work on your part.
