Being a broke college student is a rite of passage. But, it doesn’t need to last forever. Your college years are an extremely formative time. The practices and patterns you set now will follow you into adulthood. That means it’s time to start developing healthy financial habits. No more stretching your checking account to its last dollar. It doesn’t matter whether your living paycheck to paycheck or you get a hefty allowance from your parents, saving money and being financially responsible is possible and necessary. If you have no idea where to begin, here a few goals and tips to get you started:
Emergency Fund
An emergency fund is exactly what it sounds like: a safety net of money set aside only to be used in financial emergencies and unexpected expenses. It is the most basic necessity of personal finance. With an emergency fund you can have peace of mind knowing that you are prepared for any crisis. Most financial advisers recommend saving three to six months worth of living expenses for your emergency fund. However, keep in mind that anything is better than nothing.
Saving to Pay Back Student Loans
The looming dread of knowing I will have to pay off my loans is probably the biggest reason why I save money in college. By putting aside some money here and there now, I’m hoping I can lessen the burden of paying off my student debt for my future self.
Building Financial Independence and Responsible Habits
The transition from college student to independent post-grad adult is daunting. Don’t let that transition become a leap of faith. There are ways to prepare yourself for newfound independence. Take advantage of your student status cushion to build financial independence and responsible habits now before you’re living without room for mistakes.
Experiences over Materialistic Consumerism
The most rewarding realization I have come to at college is that I would rather spend money making memories than on material things I will forget about by the next month. My best tip is to cut out the impulse buys. Just because it’s trending on TikTok doesn’t mean you need it. De-influencing yourself by changing your mindset about what a meaningful purchase is to you. Instead of buying another $20 lip product, put that money towards saving for a concert or a trip to Boston.
If you’re trying to save money, the best advice I can give you is to create a monthly budget. First, you’ll want to track your spending. How much are you spending per month on groceries? On eating out? How much do you pay in bills? Write it all down until you’ve figured out your monthly expenses. Then, set realistic goals for yourself. See where you can cut back on spending and follow through. Saving money doesn’t mean you can’t allow yourself to have fun. You can still treat yourself and spend on memorable experiences, but to become more financially responsible you need to stop spending money on non-essentials.
Trust me, I know managing your finances is challenging. If saving and budgeting were easy, there would be a lot less college students eating ramen for dinner. Becoming financially responsible requires serious self discipline and control. Lucky for you, I have gone through the struggle. Along the way of becoming financially independent, I have picked up a few tips and tricks that anyone can make work.
- Skip the Daily Coffee Runs
It’s time to break the habit of getting coffee every morning. An $5 iced latte every weekday adds up to $1300 a year. That money is better elsewhere. I’m not telling you to cut out caffeine or that you can never buy a cup of coffee, but it shouldn’t be a regular thing. If you can’t live without the morning energy boost try the cold brew at Andrews which you can get for free, courtesy of your meal plan.
- Maximize Your Meal Plan
On a similar note, take advantage of the meal plan you’re required to buy. I have lowered my grocery expenses by getting my snacks from the dining halls on campus. Stock up on fruits, chips, cereal, teas, and anything else you can find to make those Trader Joe’s trips less and less frequent.
- Delete Doordash
Has anyone else felt the post-Doordash guilt? Looking at the receipt and seeing the fees, tax, and tip add up to the price of the meal you’re eating is a sobering wake-up call. The worst part is the food isn’t ever that good. Don’t give yourself the chance to make that mistake again, delete the app.
If you can’t make the quick walk to Thayer, are you really that hungry anyway?
- Use Student Discounts
Take advantage of student discounts as often as you can. Before placing an online order, check to see if the company offers a student discount. Even if it’s as little as 10%, saved money adds up. Some of my favorite student discounts are offered by Spotify, Amazon Prime, Nike, the North Face, Amtrak, and most movie theaters!
- Take Public Transportation
Skip the Uber, and take RIPTA! Rhode Island has an amazing public transportation system, so don’t overlook it. Also, take advantage of Brown’s on-call shuttle service which runs every night after 7pm.
- Find Free Activities
Not every exciting experience needs to cost you! There are plenty of fun, fresh, and free things to do on and off campus. Walk through one of Providence’s Parks, visit the RISD museum (free student entry), go to a student organization sponsored event. There are plenty of options, you just need to look for them!