8 Effective Ways to Save Money as a College Student

Saving money isn’t easy, whether you’re a financially responsible student or someone with a spending habit. There are many temptations and necessities that just can’t be ignored. 

As a college student, tuition, books, food, and other expenses are an inevitable part of life, which makes it difficult to set aside funds.

According to EBSCO, over 40% of college students in the U.S. lack sufficient knowledge and skills in financial literacy.

The same is true for more or less every country on the planet. This makes it important to learn how to manage your finances in case you need to buy something unexpectedly or for your post-graduate life. 

In this article, we’ll take a look at the most effective money-saving tips for college students.

How to Save Money as a College Student?

Set Aside Small Amounts at First

If you’re struggling financially but still want to save some funds for the future, the best solution is to start setting aside small amounts. Elizabeth Windisch, a financial planner at Aspen Wealth Management, says “Small amounts add up, and small amounts can be incrementally increased over time.”

A common recommendation for saving money without significantly decreasing the quality of your life is to follow the 50/30/20 rule. This involves splitting your income into three categories: 50% for your needs, 30% for wants, and 20% for savings. 

Depending on your income, this rule can help you achieve your financial goals one step at a time and won’t significantly impact your quality of life. Additionally, consider researching bank accounts for students, as many of them have savings options, lower fees, and offer a better grasp of your finances.

Share Housing Costs

Unless you live in a dorm or at home, sharing housing costs with other people to split rent and utility costs is a smart idea. Renting by yourself isn’t cost-effective as it requires a lot of funds and won’t let you save money effectively.

So, if you’re renting a house or an apartment alone, find a roommate or a few roommates.

According to Smartasset’s research, having a roommate will save you around $1,865 a month in New York, $1,350 in Jersey City, and $1,125 in Boston. This is a great amount of money to put aside. 

Cook at Home

It goes without saying that when you want to save money, eating out is a luxury. Of course, it doesn’t mean that eating out once in a while will hurt your budget, but eating at cafes and restaurants every day will definitely do. The same goes for takeouts and deliveries. 

Cooking at home/hostel is a great way not only to stabilize your finances but also your gut health. It’s a more convenient way to see what goes into your food and how it’s prepared. 

Back in college, I learned that cooking at home was a game changer for both my wallet and my health. I wasn’t just saving money—I knew exactly what was going into my food. Plus, once you get into the habit, cooking at home becomes way easier than it sounds.

If you’re a coffee lover, you’re also probably spending too much money on it if you don’t prepare it yourself at home. Here’s some math from CBS News: brewing coffee (such as organic, fair trade, or specialty roasts) at home costs about 25 cents per cup, while purchasing it from a shop costs around $3. So, if every penny is dear to you and you want to save up in a short time, consider eating at home.

Use Student Discounts

If you still haven’t, take advantage of student discounts at local cafes, restaurants, and online retailers. Always carry your ID and ask if they have any discounts for students. 

Major retailers, such as Amazon, Target, Apple, Microsoft, Lenovo, and Dell, among others, offer discounts to college students.

Again, it may not always be much, but even if it’s just a few dollars, it’s still worth using your student ID. 

Take Advantage of Free Resources

As a college student, you have access to a wealth of resources that can help you succeed academically, socially, and personally. Most colleges, if not all, provide free libraries, fitness centers, workshops and events, and online resources for their students.

Even when you can’t find something in the library, for example, using online resources by searching for PDF books and other materials can save you a lot of money. It’s safe to say the same about going to college fitness centers instead of paying for a membership and visiting workshops and events instead of paying somewhere else.

Work Part-Time

Working, even part-time, isn’t always easy for a college student, especially if they spend too much time studying. However, if you’re determined to save some money, it would be a great idea to look for a part-time job. It’s possible to find a job on campus to save on commuting and spend less time on the road. 

Inquire at the career services office or academic departments at your college if they have any vacant positions. Library assistants, teaching assistants, campus tour guides, food service workers, IT support technicians, and peer tutors are some of the positions for which students can be hired.

Cut Unnecessary Subscriptions

It’s easy to accumulate a variety of subscriptions with so many streaming services and software memberships. And when you forget to cancel them, you may lose money that you could have saved for your future expenses.

So, to cancel the subscriptions you no longer use, conduct a subscription audit and get rid of the ones you haven’t used in a long time. 

Netflix, Hulu, Disney+, Spotify, Apple Music, and Canva Pro are some of the services with subscriptions widely used by students. Pay attention to other services and free alternatives, too.

Stay Determined to Your Saving Goal

Saving money isn’t as pleasant as spending it. However, to achieve the necessary result, you must stay determined. Understand what you need the money for and create a plan that will help you track down how much you’ve spent and how much you’ve put aside. 

If you feel like keeping money in a bank account or somewhere in cash where it will be easily accessible isn’t effective, talk to your parents or other people you trust if they can keep it for a while. You can also get a beautiful piggy bank that you’ll feel sorry to break. 

Summing Up

Setting aside money is a responsible and mature act that every individual should seriously consider. As a student, this process may seem a bit hard, but with the right strategies, you can achieve your money-saving goal.

The most important takeaway is to stay determined and not give up halfway through.

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