Like many people, I like to buy things like clothes, food, and entry into different events. As a college student, I make the bulk of my spending money over the summer. In the past, I have found it difficult to make these funds last throughout the school year, especially as I began to go out more and spend money on things other than Target and the occasional dinner out. Here are some tips to help make your money last and your savings grow:
1. Budgets are the key to staying financially strong. There are multiple ways one can make and keep track of their budget, but a few of my favorites are spreadsheets and the envelope system.
- In a spreadsheet make a budget and include your income (or expected income) and all your expenses including rent, food, and other necessary items. In the summer, monitor where you spend all your money and in the school year create a budget that reflects what you want to do vs what you can afford to do. This balance should leave you enough money to do everything you want!
- The envelope system uses envelopes filled with cash or checks that you can spend on various things. For each envelope, you put a certain amount of money in, whatever fits your budget, and once you’ve spent it, you’re out of luck. Check out this TikTok for major money-saving inspiration.
Image from Couponing to Disney
2. Open a savings account at your bank. Over the summer, especially if you have lower expenses, try to put some money in a savings account that accumulates a little bit of interest. You are less likely to spend this money than cash or money in your checking account, plus most banks won’t charge you for it! Full-time employees are told to have six to 12 months of emergency money, but I try to save 25 percent of my paycheck that way I have a cushion if I can’t work or need extra cash quickly.
3. Get a part-time job during the school year. Look on campus and see who’s hiring. Many people find on-campus jobs that pay minimum wage, or just above minimum wage; however, an experienced babysitter can make more than $12/hour. There are constantly job postings around campuses, so being pro-active and gaining employment is better than waiting until the last minute when $$$ runs out.
4. Try to cut back on your expenses. Going out with friends is great and always a good time, but not if it leaves you with $7.46 left in your bank account. Explain to your friends that going to Dive Bar every weekend is not in the budget for you and try to find cheaper alternatives that the whole group can also enjoy. Chances are, you’re not the only one struggling financially! It;s college after all.
Image from Pixabay
5. The golden rule to happiness is spending less than you make. Even if you’re only making minimum wage, do your best to put some of your checks aside. Eventually, you’re going to want to invest, buy a house or retire. Start saving now – it can greatly affect the timeframe of your financial decisions.