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Saving Tips For College Freshmen


Saving Tips For College Freshmen

What can you tell your student about finances?

You’re in school – with a tremendous opportunity to learn and grow. It’s also a place where good, or bad, financial habits can develop. It’s easy to accumulate consumer debt on top of what you might be taking on specifically for college. However, if you can start college with good habits and a healthy perspective on money, it’s an opportunity to make great personal gains.

This is likely your first experience of being out on your own. So we offer you a few tips to make freshman year successful from a financial perspective. Before setting off with the recommendations, let’s acknowledge a few things up front. College can be expensive. It can be demanding. And it can be stressful. Everyone’s experience and situation is different, but there are some near-universal truths of the college experience as it relates to finances. So, here are a few tips from Central Bank intended to make the transition a little smoother.

1)     Be clear on the difference between your needs and wants. Most universities offer the fulfillment of many needs within your tuition and room/board. Sure, you may want the convenience of a pre-packaged snack, but maybe that desire can be fulfilled by the meal plan you’ve already paid for? It would be fun to download or rent a movie – maybe there’s something already showing at the student union for free. Do a little legwork – the university and student activity board recognizes the need for cheap (free) entertainment and recreation. Take advantage of the resources on campus and avoid the urge to ‘shop’ for satisfaction.

2)     Set goals. Identify a challenge. College is about stretching yourself. Can you set savings goals and attack them in such a way that you’ll have a great story to tell later, at a recruiting interview, for instance? A financial prudence story can make you just plain feel good. It can also demonstrate a level of maturity and resolve that sets you apart from your peers in the minds of a hiring manager.

3)     Look for grants. If you are paying full or part of your tuition, know that there are many grants and scholarships out there. And not all of them are redeemed every year. Talk to your counselor or the bursar at your school. They may be a resource in matching you up with an appropriate funding source that relieves some of that burden. If you’re not yet in college, don’t forget about Coverdell education savings plans and similar financial instruments.

4)     Budget. Figure out tuition and room and board, of course. Then also figure out what you need for spending cash. One suggestion is to take out what you need at the beginning of the month, then stick to using only that cash in a given month. If you don’t like carrying cash, consider a pre-paid card that allows you to load in that amount each month. Both options will help you with your discipline and spur you to get creative when it comes to both saving and earning.

5)     The car. Make do without if you can. Almost all campuses are planned in favor of pedestrians, cyclists and local buses. With a car, the sometimes hidden costs of gas, parking (and, let’s face it, parking tickets) and insurance can be an unnecessary burden. (Add it up if you don’t think so.) Think about living close to, or on, campus and the places you’ll need to go. Get good shoes. Enjoy the benefits of walking – seeing friends on the sidewalk, getting fresh air in your lungs, clearing your mind. You might actually feel the benefits outside of the financial savings the most, though saving a few bucks will surely lift a psychological burden as well as a financial one!

6)     Roommate? Absolutely! It is wise to share the costs of lodging if you’ve moved past freshman year. Splitting the costs should be done with care. It’s easy for confusion or misunderstandings to make it a burden. So, before you sign a lease, set some ground-rules with your roommates, even if they’re your best friends. You’ll all feel a dose more mature for a minute or two, and then you can get back to being young and carefree. (Pro Tip: If you’re going to buy a late-night pizza, go ‘halfsies.’ And maybe even go a size larger for the volume discount plus the ecstasy of having a ready-made snack in the fridge tomorrow.)

7)     Money-making opportunities. Can you make money doing something that fits into your educational plan or just makes you happy? A couple examples: if you’re in a technical field, is there a lab at the school that needs students to fill in during the week to check items out or provide tech support? If you like to be around children or pets, maybe there are babysitting, pet sitting or house sitting jobs to pick up? Colleges are busy places – people need help you can provide!

8)     Be a savvy shopper. When you’re looking at school supplies or furniture, the best deals can be found locally. While we’re on the topic of furniture. Every semester at college sees a moving day – it’s not uncommon to find a useful piece of furniture on the curbside, discarded simply because it couldn’t fit on top of Mom or Dad’s car. Don’t be too proud!

Want more info? Two valuable financial resources for incoming freshmen include: Scholarship America and MyMoney.Gov.

Got any financial tips or good advice from your college experience? Let us know.  

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You are leaving the Central Bank website. We are not endorsing or guaranteeing the products, information or recommendations provided by the organizations linked to our website. We are not liable for any failure of products or services advertised on those sites. We are not responsible for the validity, collection, use or security of information by organizations that may be linked to our website. We encourage you to read the privacy policies of websites reached through the use of links from the Central Bank website.

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