How To Save Money In College

From first-years to those returning to school, most college students are laser-focused on what classes they'll take and where they'll live. But they’ll probably have something else on their minds besides grades or course credits: how to save money in college.

Fortunately, student loans aren’t the only way to make ends meet while working on your degree. If you’re feeling overwhelmed by college costs, we have tips so you can learn how to save money while you’re in school.

How Can I Save Money As A Student?

You can successfully slash expenses and save money with a bit of planning. Here are some tips:

1. Assess Expenses And Create A Budget

Your first step is to make a list of your income and expenses. Identify all your sources of income, including what you earn from on-campus or off-campus work, scholarships, grants, student loans or gift money.

After estimating how much money you bring in each month, your next step is to track expenses. List your expenses on a handy sheet of paper, track them on a spreadsheet or consider using an app like the Rocket Money℠ app to automatically see all your linked accounts in one place.

Divide your expenses into two categories: fixed and variable. Fixed expenses – like tuition, rent, car payments or insurance premiums – are the same every month.

Variable expenses are the costs that change month to month, like groceries, entertainment, clothing, etc.

You can create a realistic budget now that you have a handle on your income and expenses. A good budget will track where you’re spending your money. It can also help you identify where you can cut costs to help you meet financial goals.

The 50/30/20 rule is a popular budgeting method that recommends putting 50% of your income toward necessities, 30% toward discretionary expenses and 20% toward savings and debt repayment. This method may not work for everyone – but it's a start.

Revisit your budget often, ideally once a month, but at least once a year. The goal is to see where you may need to readjust as your expenses or income changes. Keeping track of your expenses and constantly adjusting your budget is a great way to develop effective spending habits and make informed financial decisions.

2. Work Part-Time

Working part-time as a college student helps in more ways than one. First, it pads your income and gives extra support while you're earning your degree. You'll also learn to balance school and work and improve your time management skills.

Depending on who you work with or what you’re doing, your job can help you gain practical experience and build a professional network, forging connections that may prove invaluable after graduation. And you’ll build skills you can transfer to any career, including communication, teamwork and problem-solving.

To increase your chances of hanging on to a job, make sure it aligns with your schedule – and if you’re lucky enough – your interests and goals. Many colleges have job boards and career centers you can use to find off-campus and on-campus work, internships, freelance and remote work. You may want to focus on on-campus jobs because there’s usually more flexibility to schedule around classes.

Many students get retail or customer service jobs off-campus because they’re generally easy to find and usually offer flexible schedules so students can juggle work and classes.

3. Snag Student Discounts

Once you’re enrolled, you’ll get a student ID. Your ID is more than a piece of plastic that gets you through locked doors. It’s a key that can unlock special savings and discounts.

Countless businesses offer deals to students, allowing them to save money on everyday expenses.

When you can, plan your purchases strategically. For instance, if you need to buy a laptop for school, look for a store that offers a significant discount or a student promotion. If you can wait, other retailers will flood the market with special deals during big shopping seasons, like the back-to-school season or Black Friday.

Can’t find any discounts? Don't be afraid to ask! Even if it isn’t advertised, some businesses may give you a discount if you can produce your student ID.

While 10% off here and there may not seem like much, it adds up.

4. Use Credit Cards Wisely

Credit cards can be a helpful tool – but only if you use them mindfully. Students can build their credit history with a credit card. An established credit history is critical to rent an apartment, buy a car or qualify for loans. When you shop with a credit card and pay your bills on time, you gradually build a strong credit score that can benefit you in the long run.

Many student credit cards offer rewards like cash back or points to redeem for travel or other benefits. These rewards add up over time and can build significant savings for college students on a budget.

If you plan to use a credit card, you must understand its benefits, risks and best practices. Here are a few tips to factor in:

• Create a budget: Have a solid budget in place so you know you can afford to repay your purchases.
• Understand interest rate: When you use a credit card, you borrow money, and the cost of borrowing money is interest. If you don't pay off the balance each month, interest will be charged on the remaining amount.
• Read the fine print: Many credit cards have annual fees and other charges that can accrue even if you don't use the card much. Pay close attention to fees before you open a credit card.
• Pay your bills on time: Late payments will hurt your credit score and can lead to extra fees.
• Only use your card for necessary expenses: Don't use your credit card to splurge. Reserve it for the necessities, like gas and groceries, to prevent or curb overspending.

5. Assess Your Housing Situation

Assess your housing situation and see if there’s an opportunity to save money. Living on campus may seem like the most convenient option, and in some cases, some colleges require undergrads to live on campus. But it's typically the most expensive option.

The average cost of room and board at a four-year public college is around $11,520 a year, according to the Education Data Initiative. The price can vary by the school’s location, the type of accommodation, the meal plan and other factors.

Get Roommates

One cost-saving housing solution is to consider roommates. Single dorm rooms are typically more expensive than shared rooms. By sharing a room, you can significantly cut your housing costs.

Live Off-Campus

You may need to move off campus to save money. You’ll have more flexibility around your living arrangements and may pay less for it. Finding a place to live off campus may require extra legwork, but it can be considerably cheaper than living on campus. And there are other benefits, too. You’ll have more opportunities to meet locals and explore different neighborhoods.

6. Take Public Transportation

Once you've figured out your living situation, it's time to think about how you'll get around. Many college students own cars. While that’s convenient, it can be expensive. And many campuses charge for parking.

Consider taking public transportation. If you live in a city with a solid transit system, you can save money by taking the bus, train or subway.

7. Save On Textbooks

College textbooks cost between $628 and $1,200 a year on average. To save money, consider buying used books or renting.

Some publishers have gone digital, allowing students to purchase e-books instead of physical copies. Many university bookstores offer rental options that are cheaper than buying new books. And online vendors, like Amazon and Chegg, also offer affordable textbook rental and purchase options.

8. Plan Your Meals Ahead Of Time

Food is a nonnegotiable expense – but even meals must stay within your budget. That doesn’t have to mean high-sodium ramen noodle cups every night. You can eat healthy, delicious meals without breaking the bank.

Opting out of a meal plan is one way to save, but you should only do this if you're confident you'll commit to cooking your own food. Also, consider meal-prepping to save time and money.

9. Apply For Scholarships And Grants

According to Trellis Research, about 73% of all college students experience some financial difficulty while in school. It's no wonder – college is expensive, and the costs continue to rise. In 2023, the average cost of a public, four-year school was $11,260, with private schools coming in at $41,540, according to the College Board Trends in College Pricing report.

Applying for grants and scholarships is another way to save money. Many schools offer awards to students based on academic achievement, financial need or qualifying demographics. You should also explore the scholarships and grants community organizations and foundations provide.

10. Take Advantage Of Free Or Discounted Resources

Finally, tap into the resources available at your school. You're technically paying for these resources as part of your tuition and fees. And since you can't opt out of those expenses, you might as well get your money's worth!

Most college campuses provide students with a wealth of resources, such as campus health centers that offer free or low-cost medical care. The centers often provide free immunizations and other preventative health care. Some universities even offer discounted prescription drug programs for students. The school’s gyms may offer free or discounted exercise classes and access to workout equipment.

And don't overlook the campus library. Your library may offer free workshops and amenities, like writing services and tech rentals.

The Bottom Line: Save Money In College While You Study

If college costs are stressing you out, there are options to slash expenses and save some cash while you focus on your degree. To create a realistic budget and save money, download the Rocket Money app today to enjoy greater financial freedom in college – and after graduation.