Financial Freedom for College Students: Expert Tips for Saving Money
As graduation season approaches, many high school students are preparing for their next chapter in college. However, one major obstacle stands in their way: money. Paying for books, groceries, rent, and student loans can be a recipe for debt. But fear not, dear students! With some expert advice and a few simple habits, you can navigate the financial challenges of college life.
“It’s hard. I mean, there’s no way around it. It’s hard to make money and go to school at the same time,” says certified financial planner Josh Chambers with Baird. According to Chambers, one of the most important habits to develop is budgeting. “Keeping track of how much you’re spending on each individual thing per month is a good start because that’s already planning for what you have to do once you’re out of college,” he advises.
Cutting Unnecessary Expenses
For college students, cutting costs is crucial. One of the biggest areas to target is subscriptions. Do you really need every streaming service, or can you get by with just one or two? Those $10, $15, or $20 monthly fees can add up quickly. Another area to cut back on is late-night food runs. While it may be tempting to grab a quick bite at 2 am, it’s not worth breaking the bank.
Student Loans: Be Cautious
When it comes to paying tuition, student loans may be necessary, but be wary of loan companies that promise lower interest rates in exchange for sacrificing government assistance. “The different loan companies that tell you, ‘If you refinance your loan through us, you’ll have lower interest rates.’ While that’s true, you’re also sacrificing help from the government,” warns Chambers.
Side Hustles and Savings
If you have spare time, consider picking up a side hustle like tutoring or meal delivery to bring in some extra cash. And when you do have some money saved up, keep it in a high-yield savings account for emergencies. As Chambers puts it, “The best thing you can do when trying to save your money is keeping it in a high-yield savings account, and keep adding to it in case of emergencies.”
College students can save money by cutting unnecessary expenses and developing good financial habits.
By following these expert tips, you can take control of your finances and set yourself up for financial freedom in college and beyond.
A high-yield savings account can help you save money and earn interest.
