Graduation gets closer each day, and now, you must seriously start thinking about your finances after college. The biggest worry college students have about their future is student debt. This is understandable, but it doesn’t have to be unmanageable. In fact, with these money saving tips, you can start to plan for your future budget today. Getting a head start on money management can make adulthood less intimidating; you’ll also be able to save more money now that will help you transition into your post-grad life.
Get Your First Credit Card
It’s not too late to apply for a student credit card. These are fantastic options for first-time borrowers that allow you to build a history while earning a lot of great perks as well. We suggest going for a student credit card because they tend to have much lower interest rates and benefits. Your credit score will play a big role in your financial future; from getting a lease to a new car, you’ll want to have a decent history to ensure you’re approved for all those major milestones that lie ahead.
Credit cards are not free money though, and you will need to be comfortable managing the responsibility of a monthly bill. Make sure you read all the fine print of a card before agreeing to borrow one; there can often be maintenance fees, variable interest, and even hefty charges for cancelling your line of credit before a certain period. If you aren’t 100% sure about whether a card is right for you, ask a parent or trusted adult to look first.
Stop Going Out Every Weekend
You can still have fun with your friends, just not at the expense of another $100 tab. Consider hosting Friday night BBQs, Saturday crockpot meals or mid-week dinners with your friends to save money on the typical weekend brunch. These social opportunities are also good ways to cut back on everyone’s expenses, since you can ask each guest to bring their own contribution to the table. You’ll get to keep money in the bank while developing cooking skills, too.
Go on Group Trips
When it’s time for your last Spring Break, turn it into a savings opportunity by sharing a hotel room with your friends. Split the cost of all your travel expenses whenever possible. Did you know that lots of activities have group discounts when you book online? Even if there isn’t a formal offer available, you can all agree to pool your resources and divide your costs evenly, so everyone saves more than they would paying individually.
Download a Budgeting App
Even when you’re committed to a budget, it can be easy to overspend if you aren’t keeping track of your finances. Your bank app only goes so far, and that long list of transactions ultimately becomes a blur. We suggest downloading a budgeting app that will give you a visualization of your spending, so you can better understand your habits and eliminate unnecessary costs. If you have a problem with impulse shopping, these apps can help you look expensive on a budget by showing you exactly what you currently spend and how to tweak it to meet your goals.
Give Yourself the Gift of Automatic Savings Deposits
Since you likely have a student bank account, you should be able to open a savings account without needing a huge minimum deposit. Now is the time to open a savings account and start contributing to it regularly. Most banks will require a minimum monthly deposit (usually around $25), and you can set it to automatically be deposited from your checking account each month.
Automatic savings are great because they ensure you are consistently building a safety net while keeping your actual spending money reduced. If you’re the type of person who tends to buy first, think later, automatic savings could be a good way to stay accountable. You should still set up alerts on your phone, though, so you never accidentally overdraw your account by thinking you have more available than you do.
Plan Your Meals
Meal prepping doesn’t have to be extensive to be beneficial. You can pick up a single loaf of bread and envision several different types of sandwiches you’ll make that week. One bag of salad can make you three lunches, and even with the cost of some toppings, you’ll still pay way less than when you buy a salad out.
