College is a big step, and so is figuring out how to pay for it. With the fall semester just around the corner, now’s the time for students and parents to get their financial ducks in a row.
It might seem like a lot to handle, but getting these things sorted now can save you stress later. To help, we’ve put together some key tips for students and parents to tackle college finances before classes even start.
Money tips for college
1: Create a budget
The very first step to taking control of your college finances is to create a budget. Know how much money you have coming in (from family, aid, jobs). Then, list where it goes: regular bills, food, fun, books. Plan how to spend so you don’t overspend.
Track your spending to make sure you’re sticking to your plan. You can easily do this with a notebook, spreadsheet, or app. This helps you find areas to save and stay in control of your college finances.
2: Build an emergency fund
Life happens. Have some money set aside in an emergency fund for unexpected costs, like a sudden illness or car trouble. Even a small amount saved regularly can be a big help in a pinch and prevent you from going into debt.
3: Starting building credit
Think of building credit like establishing a good financial reputation. Getting a student credit card and using it responsibly – making small purchases and paying the balance in full and on time each month – can help you build a positive credit score. This score is important down the road when you might need to apply for loans (like a car loan) or rent an apartment.
4: Take advantage of student discounts
Your student ID can unlock savings you might not even realize exist! Always ask if a business offers a student discount before you pay. This can apply to everything from movie tickets and museum admissions to software, public transportation, and even some retail stores. It’s a simple way to keep more money in your pocket.
5: Stay on top of scholarship opportunities
Don’t just apply for scholarships at the beginning of the semester; keep an eye out for new scholarship opportunities throughout the year. Check your college’s financial aid website, online scholarship search engines, and even local organizations. Every scholarship you receive lessens the financial burden.
6: When possible, buy used
You can save a significant amount of money by buying used items instead of new. For used textbooks, check online marketplaces like Amazon or Chegg, your college bookstore’s used section, and ask upperclassmen if they’re selling any. Also consider buying used furniture and electronics for your dorm or apartment from online classifieds or thrift stores.
7: Utilize campus resources
Your college likely offers a variety of free or low-cost resources that can save you money. Look into free transportation services provided by the school, which can help you get around town without needing a car or paying for public transport. Libraries offer free access to books and research materials, saving you on purchases. Tutoring centers can help you succeed academically without paying for private tutors. Health centers can provide basic medical care.
8: Explore affordable entertainment
Having fun in college doesn’t have to be expensive. Many campuses host free events like movie screenings, concerts by student groups, lectures, and club meetings that can be entertaining and social. Also, explore low-cost options in your college town, like free museum days or student-priced events.
9: Be smart about meal plans
Carefully consider your eating habits before selecting a meal plan. If you know you won’t eat on campus frequently, a smaller plan with fewer meals or a block plan (a set number of meals per semester) might be more cost-effective than an unlimited plan. You can always add more meals later if needed.
10: Don’t be afraid to ask for help
Navigating college finances can be confusing. If you have questions about your financial aid package, billing statements, or just need advice on managing your money, don’t be afraid to reach out. Talk to your parents, the college’s financial aid office, academic advisors, or student support services. They are there to guide you and can provide valuable assistance and resources.
Working together: students and parents on money
Figuring out college finances often works best when students and parents communicate openly and work together.
Honest talk about costs
It’s important for everyone to understand the full picture of college expenses, beyond just tuition. Discussing costs like room and board, books, and personal spending early on helps set realistic expectations and understand what’s affordable.
Dividing financial responsibilities
Clearly define who will be responsible for different college costs. Will parents cover tuition and housing, while students handle books and personal expenses? Having this understanding upfront prevents confusion and allows everyone to plan accordingly.
Regular check-ins on spending
Students keeping parents informed about their spending and parents offering guidance can be beneficial. This isn’t about strict oversight, but rather open communication and support in managing finances effectively.
Planning for financial challenges
Discuss what will happen if unexpected financial difficulties arise. Having a plan in place for how to address these situations can reduce stress and help everyone work together to find solutions, like exploring more aid or adjusting budgets.
Final thoughts
Going to college is a major step, and understanding the financial side is key for a smooth experience. Taking the time now to plan your budget, explore ways to save, and communicate openly about money will make a real difference during your college years. Think of it as building a valuable life skill – being financially aware will not only help you manage college costs but also benefit you after you graduate and have to manage student loans. By being proactive and making smart choices, you’re setting yourself up for success both academically and financially.
