Spending and saving for college students is different that for others. College students are either not working or not working as much as others but still have to spend lots of money on books fees and supplies among other things.
So how do college students cut back on spending and save money? The first thing you need to do is to track your spending for a month or two so that you know where you are spending your money. By keeping receipts or sitting down weekly at a specific time say Sunday afternoon and recording on a piece of paper, where you spent money last week and what for, you will have a good handle on where you are spending money. Once you have done this for a month or two you know where your money is being spent, and now you can begin to make changes in your spending. When you make changes in your spending you will begin to take more control of your finances and be able to build savings that will help you to save money.
Here are a few places where college students can make changes in their spending and save money:
Coffee – If you drink coffee buy a coffee pot and bring your own to campus every day. Or cut your latte habit down by 3 cups a week you can save yourself around $550 dollars a year!
Eating Out -- Another thing that can be cut back on is eating out whether it is campus food or pizza delivery, the price adds up. It is easy to make sandwiches and all sorts of other meals using nothing more than a microwave. A sandwich on campus will cost anywhere from $4 – $6 dollars on campus and if you want something to go with it (drink, side, etc.) your meal will likely cost well over $8. Cut this bad habit out twice a week and you can save $832 dollars in one year!
ATM fees — A small cost that can add up over time is Automatic Teller Machines (ATM) fees. ATM fees typically range from $2-$5 per transaction. A simple way to avoid these fees is to contact your bank to see which ATM’s they sponsor. If you stick to the sponsored ATM’s, your bank won’t charge you a fee for your usage. If you can, try to cut out ATM stops all together. By eliminating two stops to the ATM a week you could save over $200 a year in fees!
Gas – Spending money on gas may seem like an absolute necessity if you are used to driving everywhere. However, today many college campuses and communities have great public transportation systems that can get you almost anywhere you need to go. If you figure gas at $2.70 in a car that gets 20 mpg and you drive around 5 miles a day to and from school, work, the store etc gas can get expensive. You can choose to ride the bus, which may be free with your student ID, and you can check online for bus routes and pick up times. You may also want to try biking to and from places as an option to save some money on gas and it is healthy for you too. If you walk, bus or bike it you could save about $466 dollars a year! You can figure your own gas savings.
If you could make these small changes in your spending you could save roughly $1890. Whether you save this money for that new 50 inch flat screen you have been wanting or keep it saved for long term financial goals cutting back on small expenses will add up in the long run.
This article was included in the Canadian Finance Carnival and the Carnival of Wealth.
Article by Wil G.
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Cell Phone Bills — Don’t spend so much on your cell phone…it’s unnecessary! I get the same amenities I used to get with my contract phone as I do now with my prepaid wireless phone. I switched to TracFone and I love it. I pay $45 a month and receive unlimited text minutes and web! It really is a great deal and I cannot stress how important it is for college students to save save save!!
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