Financial Tips for College Students

Attending college is a tremendous opportunity, but it can come with a hefty price tag. Beyond tuition, you may face costs like textbooks, housing, and daily essentials. Here are some of the most common college costs and some financial tips to help you through college.

Tip #1: Create a Budget

The sheer number of things that you’re suddenly responsible for can be overwhelming, and you might be amazed at how fast cash disappears if you’ve never lived on your own before. From daily meals to transportation, the routine expenses can quickly add up.

A budget helps you manage these costs and divide your money responsibly. One of the easiest ways to budget as a college student is to use the 50/30/20 rule where 50% of your monthly income is spent on necessities, 30% is for wants, and 20% is allotted to savings and debt.

Your needs include the everyday things that you need to survive, like food, furniture, utilities, toiletries, small appliances and laundry. Your wants are the other things that can make life fun but can be cut in a pinch, like hobbies, shopping and vacations. It’s important to start or continue saving money while you’re in college. Try to dedicate part of your budget to a long-term savings every month.

If you’re looking for another way to budget, check out this interactive budgeting worksheet to calculate your monthly expenses and set some goals.

Tip #2: Minimize Unnecessary Expenses

Before heading off to college, take stock of what you already have. Chances are, you already possess some essential items. Everyday items like clothing and basic furniture might already be in your possession. By identifying these items early on, you can minimize unnecessary expenses and better allocate your budget toward your needs. Remember that miscellaneous expenses can contribute to daily financial demands. While seemingly minor, these costs can accumulate quickly, so be mindful of these everyday expenditures.

Tip #3: Share the Load

If you’re moving out, consider getting college roommates. This can help you save money in college, and also gives you people to share laughs and memories with. If you do live with roommates, make a plan for who will buy what before you move in. That way you can avoid ending up with two mini-fridges and no coffee maker.

It may also benefit you to share certain foods and dinners. It’s hard for one person to get through a gallon of milk or loaf of bread before it expires, but it’s pretty easy for three people. You may also ask about rotating dinner nights. For instance, one roommate makes dinner for everyone on Monday, the next on Tuesday, etc. It usually doesn’t cost much more to make a meal for two than it does for one and doing so saves money and time.

To ensure everyone can contribute fairly, it’s important to communicate openly and be aware of budget constraints. By keeping things clear and straightforward, you can all stay on the same page and save money together.

Tip #4: Reduce the Cost of College

Reducing college costs may be a big concern. Scholarships, grants, and work-study programs can significantly alleviate the financial burden of tuition and related expenses. Scholarships and grants are types of financial aid awarded to students, often based on academic or other achievements, that do not need to be repaid. Work-study is a federally and sometimes state-funded program in the U.S. that helps students earn financial funding through a part-time work program while attending college. You can also consider attending community college for general education requirements before transferring to a four-year institution. This offers a cost-effective approach to earning a degree.

Visit www.ecu.com/for-students for tools and resources, like our College Planning Center, college search tool and scholarship search tool.

By implementing some or all of these money saving tips, we hope you will be able to better manage your finances and reduce financial stress throughout college.

The tips in this article, Financial Tips for College Students, were shared by our team at Educators Credit Union and our partners at GreenPath Financial Wellness, a trusted national nonprofit.