Going to college is a major financial commitment. Between textbooks, living expenses and tuition, the costs add up very quickly. Students must find creative ways to save and make money. Taking control of your spending and capitalizing on opportunities to earn extra cash can be highly beneficial for students who are just starting out.
We are sharing various tips to help you spend less and make paying for school more manageable.
Ways To Start Saving Money For College
The sooner you start saving money and planning for college, the sooner you can create an effective financial plan that sets you up for future success. By beginning in advance, you can get a head start on paying back your student loans and enjoy more peace of mind.
Explore some of the leading ways to save money for college:
Be Strategic With High School Courses
Taking courses with transferrable college credits in high school is a great way to save on tuition costs. When working with your school counselor or choosing courses for your high school schedule, consider what Advanced Placement (AP) and community college classes you could take.
Every college has its own criteria for the credits they accept. Check out the transfer equivalency for the higher education institutions that you are interested in attending. In many cases, the cost of the AP or community college course is less than what you'd spend on tuition otherwise.
Weigh Your Living Expenses
Before deciding where you'll live during the school year, it is very important to weigh your different options. Compare the expenses of living in a dorm versus other on-campus housing, and consider what it would cost to live off-campus in an apartment or house. See if you can find what utilities and amenities are included at each place at the best price.
Figure out where it would be cheapest for you to stay. In many cases, living at home and commuting to campus is the best way to save on your living expenses.
Part-Time and Gig Work
One of the best money-saving tips for college is to start working as soon as you can. Having a part-time job or doing gig work from time to time can help you cover the costs of things like textbooks and gas.
Many types of businesses are happy to hire high school students, including retailers and food service. You can also find creative ways to make money, like offering tutoring services or selling old clothing online. With time and effort, you may even be able to start earning extra cash for college with a side hustle.
Sign Up for a Credit Card With Rewards
As you explore how to save money for college, don't overlook the financial bonuses of signing up for a credit card with great perks.
When checking out different options, always read the fine print and ask about anything that is unclear to you. Some of the best options have no annual fees and offer awesome cash-back rewards.
Credit cards are a huge financial responsibility and shouldn't be taken lightly, so be sure you can adequately afford your monthly payments. If you miss payment deadlines, you could wind up spending extra on penalties, interest and late fees.
Open a Savings Account or Money Market Account
Another great way to start saving for college is to open a savings account or money market account.
A savings account is designed specifically for money you're trying to store away for the future. There are usually limitations on how many withdrawals you can do from this type of bank account per statement period. Both savings accounts and money market accounts (MMA) accrue interest over time. An MMA is a good choice for students because they are suited specifically for short-term financial goals.
Ask For Contributions
In the years leading up to college, consider asking your family and friends to contribute to your college fund. Instead of birthday, holiday or graduation presents, your loved ones could gift you money that you put directly into a savings account. Every dollar added will get you one step closer to paying off your student loans.
Apply for Scholarships and Grants
Applying for scholarships and grants has never been more painless for students. You can find many online tools and resources that make it easy to discover what you are eligible for.
There are various types of scholarships that you may be able to apply for, including options that are based on academic performance, leadership quality or community service activities.
Dedicate some time to filling out as many applications as you can. Keep track of the scholarships and grants you apply for so you can monitor their status. You may be surprised by what you get.
Start Budgeting
When learning how to plan for college costs, you'll likely want to create a new budget.
Itemizing your expenses will help you get a better picture of your finances and where your money needs to go. Some of these costs will include:
- Textbooks
- Utilities
- Loan payments
- Meal plans
- Transportation
Figure out the average cost of each recurring expense and consider using a budgeting tool to keep track of your progress. The earlier you start budgeting, the more financially prepared you'll be for tackling the costs of college life.
Tips To Save Money in College
While enrolled in classes, there are some other ways to cut costs and make paying for college more manageable. Learn how to save money on college tuition and earn some extra cash with these easy tips:
Take Your Core Courses at a Community College
A great way to spend less on tuition is to enroll at a local community college for your general education classes.
Some students choose to complete their freshman and sophomore years at a nearby community college, then transfer to a bigger university for their last years. Like with AP classes in high school, you'll need to ensure that the credits you're earning will transfer to the specific college you want to attend.
Taking your core courses at a community college can also help you save on living costs if you are able to commute from home.
Work a Job On-Campus
Colleges and universities often have many part-time job opportunities for students. On-campus jobs are a great way to meet new people and make professional connections while earning extra cash.
Your institution might have a dedicated student employment department that can assist you in finding a job that suits you and your schedule. Whether you're manning the front desk at the student gym or selling tickets at a sporting event, there is a wide variety of on-campus jobs that schools hire students for.
Opt for Used Textbooks and Electronics
Textbooks are one of the biggest expenses for college students. Buying them used is an excellent way to save extra money. You may be able to find used books online, at the school bookstore or from a student who previously took the course. They tend to be significantly cheaper than brand-new options too.
Similar to textbooks, students can also get previously used electronics at discounted rates. Used laptops, response clickers and other tech accessories are available online. Remember to double-check that the electronics you choose are compatible with any programs you'll need for your specific classes or labs.
Split Housing Costs With Roommates
Living with roommates is an excellent way to lower your housing expenses. Instead of covering rent and utilities alone, you can split the costs and save more money.
Make a plan with your roommates and ensure everyone can cover the costs they're responsible for on time. You can also split the costs for things like groceries, streaming services and fuel (if you carpool to class).
When your living costs are a team effort with reliable roommates, you can effectively spend less money.
Plan Your Meals in Advance
Meal plans, groceries and eating out can all be very costly, especially for a college student trying to make ends meet. An excellent way to save money on food is to carefully plan your meals in advance.
For example, if you have a meal plan, try to eat at a dining hall as much as possible. Skip the extra snacks and off-campus coffee runs. Stick with what's available on your plan and schedule the rest of your day around those meals.
And if you are cooking your own meals or using a meal kit service, try to calculate exactly what you need so that you aren't wasting food or money.
Take Advantage of Free or Discounted Amenities
A huge perk of being a college student is having access to many free or discounted amenities, such as the following:
- Fitness centers
- Printing services
- Tutoring opportunities
- Library books
- Health services
- Equipment rentals
- Public transportation
- Subscriptions
You can save tons of money by utilizing the amenities available to you as a student. More people should take advantage of these services and offers, especially those looking to get the most bang for their buck when it comes to tuition.
Optimize Your Course Load
While this tip will not be applicable or realistic for everyone, optimizing your course load can help many students cut tuition costs. This means taking as many classes as you can per semester so that you get your required credits in less time.
By optimizing your course load, you may be able to graduate a semester or two early and forego the extra tuition and living expenses. However, jam-packing your class schedule may not be financially beneficial if your institution charges per credit hour.
Fill Out the FAFSA Yearly
Filling out the Free Application for Federal Student Aid (FAFSA) every year is another helpful money-saving tip. You can get access to free scholarships and grants that help cover your college tuition costs. However, many students forget to resubmit their applications from year to year.
Since your eligibility is likely to change over the course of 12 months, you must fill out and submit the FAFSA for each school year. Factors such as an increase in income or a new family member enrolling in college can change what financial assistance you qualify for.
Sell Your Old Textbooks and Supplies
Selling is a great way to make back some of the money you spend on textbooks and supplies each semester. Some campus bookstores will buy gently used copies from you, and there are tons of websites where you can post them at a slightly discounted rate.
While you may want to hold onto some of your textbooks that have essential information for your career and interests, many of them won't serve you after you complete the course. Plus, you can feel good knowing you helped someone else save.
Prioritize Academic Performance
While you manage your finances and sort out your living accommodations, don't forget to prioritize your academic performance. Your classes are why you're paying to go to college in the first place, so it is important to study and pay attention in class. Failing a course and having to retake it costs money.
If you're struggling with a class, reach out for help so you can avoid having to repeat it. Also, it can be highly beneficial to test out of basic courses. Doing so can help you save on unnecessary tuition costs and waste time learning material you've already mastered.
Find Free or Low-Cost Activities for the Weekends
As a college student, you're always looking for fun weekend activities that do not break the bank. Students can save money by engaging in events or outings that are inexpensive or completely free. For example, instead of going downtown to eat at a pricey restaurant, throw a picnic with your roommates and friends.
Additional examples of low-cost ways to have fun include:
- Go hiking.
- Have a movie marathon.
- Attend a university-sponsored event.
- Play yard games.
- Play board games.
Maximize Student Discounts
Another awesome part of being a college student is getting student discounts on a wide variety of products and services. You can use your official student identification card to get markdowns on all kinds of things, such as:
- Clothing retailers.
- School supplies.
- Music streaming.
- Electronics brands.
Keep your college ID handy and ask about student discounts when you go shopping. If you're a AAA member, you can enjoy additional student membership discounts, including towing coverage and financial services.
Work With a Financial Advisor
Our final tip for saving money in college is to work with a financial advisor who can help you navigate your tuition costs and make the smartest decisions.
As a AAA Central Penn member, you can turn to the experts at Central Penn Wealth Advisors for all your financial planning needs. They will help you navigate your expenses and problem-solve to get closer to your financial goals. From investments to insurance, they will answer all your important money-related questions and concerns.
Find a AAA Central Penn Branch Location Near You Today
AAA Central Penn is here to help you discover the financial service offerings you need to save money and plan for the future. We can assist you with savings accounts and credit cards to get you on the path toward your financial goals. AAA Central Penn members can also work with Central Penn Wealth Advisors for additional financial guidance and services.
Find a branch location near you to get started today!
