5 Money Saving Tips and Tricks for Students
July 1 2023, Published 11:52 a.m. ET
Once your high school days are over, along with going to college comes a sense of freedom. It is probably the first time you’ve lived away from home and there is this feeling of being your own boss. This is the start of you. Well, here’s a funny thing about freedom: there is a catch. It is also the first time you’ve been responsible for your own finances. Whether you’ve got a federal loan or a private student loan, there is this agreement in existence with your name on it, and that makes it your responsibility. Fine, but it’s a fixed amount coming in every month. What if there are things you must buy, and you’ll have the money eventually, but you haven’t got it right now?
Welcome to the real world. You’ve been introduced to the idea of borrowing, and you understand that there’s nothing wrong with that if you only borrow what you can afford to pay back. Now it’s time to look at the secret weapon: the credit card. This is essentially a way of borrowing a certain amount every month, so if there is something you really want to pay for, but you don’t have the money in your bank account, you borrow it from your credit card provider. This can be your existing bank or someone else, and there are plenty out there to look at.
Shop Around for a Credit Card
Believe it or not, there are lenders who are actively seeking students, because you are the gainfully employed customers of the future, and it is in their own interests to draw up a list of those who will potentially be with them for life. It’s in your best interests, too, to establish good relationships in the financial world. For that reason, the lender that gave you the student loan may agree to give you a credit card, because they already know you and provided you haven’t done anything crazy in these early days, they’ve done the background checks, so why not continue? A word of warning, though: don’t grab the first card you can. That would be like marrying the first person who’ll have you.
Credit cards come with different interest rates, and it is important to study the terms and conditions to see exactly what you’re letting yourself in for. It won’t be the most exciting half hour you’ve ever spent, but your credit card can be a wonderful friend or a demanding one, so choose carefully. Look up student credit cards and you’ll see. A great idea in the spirit of a fun spoiler: pay off the full amount every month, or at least the most you can afford. Don’t just pay the minimum, because that means you’ll pay more in the long run, with interest being applied to last month’s interest.
Remember You’re Still a Student
It must be said the best way of saving money is not to spend it. Just like the best item on sale on Black Friday or whenever is the item you don’t buy. You could have this for $60 or that for $55. Or you could have neither and the money stays in your bank account. You’re still a student and even though you’ve got a credit card, you’re not going to take all your friends out to dinner on it, right? Not unless you’re getting a windfall that will enable you to pay it off, anyway.
Get Smart
Keep using your student status to your advantage, looking for travel cards at reduced rates and restaurants that welcome people like you. Even asking for household gifts for your birthday instead of other ‘wants’ that you may have works too. These things exist for various reasons. The restaurants may see you as a potential future customer, or they may see students as being likely to get a bit drunk and spend more than they intended. Don’t give them the satisfaction. This is the time to get smart and start living in a way that will serve you well in future. A generous fool is popular in the short term, but a solid citizen is popular long-term.
Travel on a Budget
Many students like to get a bit of budget traveling done between graduation and the start of their working life, and there is a lot to be said for that. Seeing different places and experiencing different cultures helps to put your own life into perspective. Just as going to college in a different city has shown you that there is more to life than is to be found in your hometown (however much you may love the place), so a little time spent in South America, Asia, the Caribbean, Canada or wherever can be an eye-opener that will help with the way you live your life and conduct your business. Travel is expensive, though, so look for special deals. Use your youth to find rates on railways or buses and always sign up for discounts where you can.
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Plan Your Future
Having a college degree puts you at a certain level in the pecking order. Yes, many have got one, but at least you’re one of the haves, not the have nots. Now pick your area of work and get yourself the best deal you can. Believe in yourself and sell yourself as if you were your own agent. This is a life skill that can be worked at and improved. Some have an innate confidence that gets them better jobs and better deals because they radiate positivity. If you’re naturally more reserved, you can turn that into an aura of quiet self-confidence, which is equally attractive. Asking for what you believe you’re worth is a sign that you know what other things are worth, and employers always want a smart cookie on their team. Don’t try to be someone you’re not, but certainly be the best version of you. If you are not getting rewarded financially for the effort you’re putting in, be sure to stand up and say so.
