7 Money Management Tips Every College Student Needs

Are you looking for money management tips to help you get by in college and beyond? Who can blame you? College is an expensive time of life.

While the hope is that a college education will be more than paid for by the quality of the job you’ll be able to get after, there’s still no sense loading yourself up with more debt than is strictly necessary.

With a bit of thought and planning, you can take the financial sting out of your education with these 7 money management tips every college student needs.

7 Money Management Tips Every College Student Needs

The average student debt each graduate carries over after college is $16,723. These 7 tips will help you manage that debt and live financially free.

1. Budget

Use a budget planner
List income
List expenses
List savings goals
Budget accordingly

The number one piece of advice for the money-savvy is to make a budget. Work out exactly how much money you have coming in and calculate your expenses: be honest, or it won’t work. Writing your budget down on paper or using a budget planner can help you get a grip on your financial needs.

You can then break your spending down into a variety of categories. Remember, college costs don’t just include the price of tuition and accommodation. Instead, include everything you spent last month, from your cellphone to your internet.

Once the essentials have been budgeted, you need to see how much is left over for beer and all the rest. If the answer is nothing, better stay in. Hey, you’re there to study, right?

2. Do You Need It or Just Want It?

Do you need it?
- Tuition debt
- Rent
- Food
- Transportation
Or just want it?
- New clothes
- New phone
- Fancy dinner

The key to your budget working for you is working out what absolutely HAS to be paid for (tuition, board, laundry) and what you WANT to pay for. Should you be spending money on yet another new T-shirt?

Break your spending down for the previous month. Did you spend too much on stuff you only wanted? Trying to avoid this can lead to significant savings down the line.

3. Party, but Not Too Hard

Attend college social events instead of going to a bar
Save money while meeting new people

Everyone needs to let off steam, and the pressure of college means a night out every now and again could almost be classed as an essential. However, did you know that the average US student spends $900 per year on alcohol? That’s twice what they spend on books!

Instead of hitting the bars to let off steam, try some of the social events organized by the college. Join a few societies. Not only are you meeting new people, but you’re also trying new things and saving a few dollars in the process.

4. Stay Clear of Credit

Credit cards can easily get out of control
Can deepen your debt
Just pay cash
Stick to cash budget

Credit cards can seem like an attractive option, and those guys from the credit card company at the student fair seem friendly and convincing. However, one survey shows that of 58% of students with credit cards, 30% had debt averaging a whopping $2,573.

Credit cards make it easy for spending to get way out of control. While having one may teach you a lot about handling money responsibly, it’s still too big a risk regarding the costs further down the line.

Bear in mind that the average APR on a student credit card is an enormous 19.8%. That’s a lot of money spent on interest alone, and you don’t even have anything to show for it.

5. Lose the Car

Cars cost a lot of money:
- Gas
- Insurance
- Upkeep
Walk to class instead if you live close by
Ditching the car can save you thousands

Do you need a car for college? Between the gas, insurance, and general upkeep, cars cost a lot of money. Plus, they all need to be paid for. Given the pedestrian-friendly nature of the vast majority of campuses, this is an expense that you can probably live without.

Ditching the car can save you $8,698 per year. Walk around your college; it’s better for you, anyway.

6. Save Where You Can

Buy second hand:
- Books
- Furniture
- Clothes
Buy store brand products

So you’re already keeping an eye on your socializing, and you’ve cut your car use to a minimum. You’ve got the discipline not to buy things you don’t need, and you’ve stopped going out every night. Guess what? There are still changes you can make for the sake of saving.

Why not buy your textbooks secondhand? You’re only using them for a semester or a year at the most. Not everything has to be shiny and new.

Additionally, shop smart with secondhand clothes. Switch from name brand to store brand products. You’ll be amazed by the money you save with just a few simple swaps.