Most of the students are suffering from financial woes as the education cost is rising high. Most often you need to think about the student loan to continue further studies in a reputed college. The scenario will continue for a long time as you should pay off the loan just after the completion of your studies. Remember, getting a job is not an easy matter. Most employers will ask you to show the credit score before offering a job. You should be very careful about not to incur knee deep debt during your college days. In that case, your credit score will hurt and you have to pay an extra amount to pay off all the debts along with your student loan.
How a student can save money
You should focus on personal finance management throughout your college days to lead a comfortable life later on. Here are some tips which will help you to save money in college:
1. Stop impulsive shopping
Impulsive shopping can be devastating for students. Most of the students tend to blow up money on stuff that they can easily do without. As a result, your student life may spoil and leave a knee deep student loan debt for you. To avoid impulsive shopping, you need to ask yourself a question “Do I really need this?”. Try to judge your every purchase to stop borrowing money for each need.
2. Nurture some good habits
You shouldn’t spend money for some fatal habits such as smoking, drinking, consuming excessive expensive coffee, clubbing and so on. Keeping such bad habits can leave you bankrupt. You should think how you can cut off theses extra costs to save money, as your income and pocket money is limited. You’ll be surprised how easily you can save some extra bucks by giving up such habits.
3. Take a class on frugal budgeting
No matter how you dislike the term “budgeting”. You have to accept the fact that, without budgeting, it’s very tough to get control over your expenses. A frugal budget is more than a friend while you’re living your student life. At first, create a budget, which is realistic, then try to track your every single spending. Use pen and paper to make it simple. Thus, you can easily detect your spending pattern and rectify it (if required).
Read more: How budgeting and frugality compliment each other
4. Credit cards? Beware of them
There're many students with a temptation of buying now and paying later. Unfortunately, they’re least aware of the fact that, these bad spending habits will come back to create problems in the near future. If you think that, you still can’t manage your credit cards, then hide them until you get a good job with steady income.
Read more: Credit cards as a necessary evil - Knowing the benefits and the pitfalls
5. Make regular payments
Try to remember the payment dates on your loans. If you’re someone who had taken out student educational loans to finance your education, then you need to remember the due dates on which you’re supposed to make the repayments. Failure to make timely repayments can hit you hard on your credit score and, thereby create problems from getting loans at favorable rates in the future.
Read more: 7 Ways you can pay off student loan debts tactfully
6. Go for scholarships
Scholarships, financial grants given by the Government and many private institutions for students who've merit and want to continue studying further. If you’ve good marks, then you can apply for scholarships to reduce the amount of student loan you have to take.
7. Living a frugal life
Living a frugal life can make your student life easier. Below are some frugal practices which will help you to save money. Have a look:
- Find out second hand textbooks Try to find out second hand textbooks to save big amount of money on brand new books. You can also use the library to get books and other facilities as well.
- Consider a bicycle to cover the college campus If your college campus is too big and it’ll cost you big on fuel costs, then you can consider a bicycle to roam around the college campus.
- Find a part time job Part time jobs are ideal for students to cover expenses related to studies. Search on the Internet and find out the most suitable one for you. But, you need to adjust your college and work shift carefully.
- Share the cost with roommates If you share the costs of fooding and lodging with your roommates, then it’ll become easy for both of you to save a certain amount of money. You can plan your meal beforehand and cook accordingly. Thus, you can reduce food waste and reduce the costs of eating out as well.
- Ask for student discounts Student discount is available in many retail shop, public transport, medical shop. So, always ask for the discounts before paying in full. Don’t miss out: 10 Frugal spending habits to build a bright and prosperous future
Bottom lines
Be wise with your money. Don’t waste your money on gym subscription or club membership that you hardly visit. Cancel all this costly subscription and enjoy jogging, swimming, cycling with your friends. You can join the outdoor society for other activities like sports, gym so on. Lastly, work hard and get good marks to ensure your future prospects. Most colleges have aids, awards for the best students. Contact the financial aid office to know more in detail about scholarship and such rewards.
