Making and Saving Money in College
As a college student like me, money is probably on your mind frequently. I've covered funding your college by working and earning scholarships, and taking out loans if necessary, in my post, "Funding Your Education." But those are just the tip of the iceberg. In this post I'll be discussing ways to save and make money in addition to your work paycheck.
Disclaimer for legal purposes: This is based on my personal experience as a college student and I'm not a professional in personal finance or investing.
SAVE MONEY
Do NOT buy your textbooks from the University bookstore without price shopping first. I actually got in trouble for telling this to students while working for our bookstore - whoops! - but it killed me to see freshman walk in and buy the first hardcover, brand new copy of the book they needed for every single class. The only things you can't find secondhand for cheaper are online codes, like STEM or online classes might require, and the "class notes" your teacher might make you buy, which are notes they've typed that are just plastic-ring bound loose paper. As soon as you know what textbooks are required or have the syllabus, check if you need it the first two weeks. If not, look for the ISBN on Amazon, AbeBooks, Chegg, etc. You can also email your teacher and ask if an electronic copy is okay, and buy the book for cheaper on Kindle, VitalSource, or other sites. You can rent them for a semester or if you buy, sell it back.
Colleges often have a Facebook page where students sell books to each other. If you need a "clicker" - used for some lecture classes to answer in-class multiple choice questions - you can potentially find it second hand from another student; check the Facebook page. If you buy and sell back to the University store, you can likely expect to get as little as 10% back, and you've probably paid a significant mark-up. Sometimes, financial aid is available earlier for University bookstore purchases than it is deposited in your bank, in which case you can ask if the teacher can scan the first chapter or so, borrow from a classmate, or try to get by through online previews until you get the aid, but don't feel like you have no other options but to buy it in-store. Students can get a one-time six month free Amazon prime account with two day shipping, or you can ask to use a relative or friends' account just for books.
Live off-campus with roommates, and cook together to split grocery costs. If possible, live with your parents - it may not be "fun" but it sure is smart. Be very careful who you sign a lease with - the worst thing is to sign with someone who flakes out later, signing just months before you get in a huge fight, or realizing one month in you signed a 12-month lease with someone who is super dirty. Make a list before grocery shopping to avoid impulse buys, but include snacks and desserts in your list. Figure out a few things you can cook easily and eat the leftovers, a few easy meals like packet pasta or microwaveable meals, and stock up on shelf-stable staples like peanut butter, rice, and canned tuna/chicken (canned chicken is great for quesadillas).
Websites online exist that can help you make the cheapest healthy meals possible or punch in what you have in the fridge and figure out what you can make with it. Balance health with budget: frozen and canned veggies are just as healthy, you can make fruit juice cheaper from concentrate, and sometimes buying something pre-cooked is fine if it means you'll eat healthier. Get a reusable water bottle and use it. You might like a screw top you can put stickers on, or one with a straw could help you drink more water. Either way, you're saving a lot on plastic bottles and reducing plastic waste! If you have a dining plan, it will get boring after a few months. Get creative to avoid getting in the habit of eating out too much, like doing taco night, making a root beer float, trying new things, and maybe not having pizza three times a week.
Make a realistic budget and keep to it - see my College Budget article. Learn to save at least 10% of your money now in preparation for saving more money later. Use every resource your college offers. Free tutoring, free printing free movie nights, free grocery bingo or pizza in the dorms, the dean's food pantry if you're struggling to eat more than ramen, free therapy sessions, free professional wear to rent for interviews, and so much more - college is full of free stuff! You're paying for it in your fees, so take advantage of it. On a similar note, if you live on- or off-campus, your residential hall probably has free food events and other fun things to do with friends. Even if you live off-campus you can attend on-campus events as well. Off-campus apartments sometimes do instagram giveaways, too! You also get a student discount, so use it! You can show a student ID in some stores and get up to 10% off, or use your student email to get discounts on online shopping, Spotify, Amazon and more. However, be careful that the discount doesn't trick you into things you wouldn't otherwise buy, because then you're spending and not saving money.
Save on your luxuries, too. Buy clothes secondhand, from Goodwill, local thrift stores, or secondhand thrifting apps like Poshmark or Depop; You can also sell your clothes using those apps or Facebook marketplace. Be very careful, however, about meeting strangers in person, and arrange public or mail transactions - there are some weird people out there. If you love clothing, shoes, and shopping, just make sure you account for it in your budget, keep track of how much you do it, and be smart about it. If you enjoy getting your nails and hair done frequently, it could be an opportunity to build a life-long skill and get some savings. For my recent birthday, I didn't have a lot to ask for, so I asked my parents to get me all the tools to do my own nails, inspired by a friend I'd had that did her own. I did my research, and was privileged my parents could get me these things as presents. It altogether cost about $100. The first try, shockingly, turned out decent! And every time after that I improved, and every use saves you $40-50 from going to the nail salon. You can trim your own hair if it's only a short amount, sew small holes in your socks and leggings, and pick up these small, manageable skills to save money without giving up nice things.
If you're at the age where you're going out to drink, bring a certain amount of cash and commit to only using that for drinks, or ask whoever the designated driver is to cut you off after a certain amount. Limit how often you go out for drinks every month, and try having wine nights in - maybe while painting or with a movie - or have fun making mixed drinks, so you can still have fun with friends without breaking the bank on expensive bar drinks. Always drink responsibly! Along the same lines, ditch expensive addictions. A coffee maker, coffee grounds, and bulk creamer is so, so much less expensive than even a cheap coffee from a store, and it adds up over time. Paying 40 cents for a coffee you make at home versus a $3.50 coffee from a store can be the difference between spending $40 and not $350 per semester on just your morning pick-me-up. If you vape or smoke, your school probably has programs to help you quit, and you can enlist your friends to remind you not to; it's expensive now, and it will cost you your health later.
On the topic of credit cards: credit card companies are predatory, and they assume young people can get bailed out by their parents, so don't assume they wouldn't offer you something that could make you bankrupt. It's good to build credit, because it can save you money on interest in future car and home purchases, and a big factor in your credit score is length of credit history, but uncontrolled credit is insanely dangerous and can, like loans, haunt you for literally decades. Paying your student loans and even your rent on time can build credit. If you know that you're an impulsive spender, be extremely cautious. If you want to open a credit card to build credit, make sure you have a few years of living and working independently and an active income, and consider trying a secured card which won't let you spend more than a set amount of money that you have. You can also have a parent add you to one of their cards to let their use build you credit (though be careful if your parents are themselves still recovering from debt). Pick something like gas or an occasional and small expense to use it for and decide on your boundaries, open a line of credit smaller than one month's pay, and pay the full statement balance every month. Treat it just like you would a debit card or cash, not spending more money than you actually have. You can also choose to just leave it at home or with your parents. Again, I am not an expert, so consult your parents, do your own research, and go through your trusted bank.
MAKE MONEY
There are several ways you can use your down time to try and make money after you've reached the 20-hour-a-week on-campus job cap. These things can also be an opportunity to show employers your drive and skill, but also keep in mind that anything you put on the internet will become part of your personal brand and how employers see you, so be considerate of what you put out there. While on campus, be sure to look at your student code of conduct and campus housing policy, as some college dorms prohibit activities that would amount to running a business from your dorm, such as doing hair or selling snacks.
Pick up a side hustle (but AVOID multi-level marketing schemes like the Foreign Exchange or Lululemon, anything where you make more money recruiting than selling); advertise your own tutoring, babysitting, and pet-sitting services or use an app like Care.com, use apps like Redbubble and Society6 to sell your art and photographs without having to invest or make and mail things yourself, or do side gigs like delivery and driving (Uber, Lyft, Postmates, DoorDash, etc.) or even things like copy-editing, graphic design, translating - whatever you're good at - on apps like TaskRabbit and Fiverr. You can make your own blog or YouTube and make money off of your personality, musical talents, comedy, or other intangible skills. Make sure not to invest more than you make unless it's something you genuinely want to do - if it's a side gig to pay for college, you shouldn't be spending hundreds on a lighting set up and an expensive camera.
Invest in stocks or certificates CAREFULLY, with parent guidance, and with a clear understanding of risk. Certificates are low-return but very, very safe: you won't make much in 2-6 years with college money, but you'll make more than on dividends from keeping it in savings. It also won't be liquid, meaning you can't take more out without paying a (probably high) fee. Meanwhile, a riskier but not extremely high-risk bet is to put money in the stock market and invest in ETFs and index funds, and leave it for years. This can get complicated with taxes and if you aren't careful, you can gamble your savings away. In college - unless you have parents that are experienced and can help you invest - it might be a good idea to just invest money you're willing to lose, like $50, to get practice and experience now and be able to do more in the future. Apps and websites exist that let you invest for free in different ways, or for a very small fee, like Acorns, Robinhood, etc. Be very careful taking advice from strangers on the internet (like me!) who aren't experts (by the way, I'm not an expert, I only speak from my own experience) and might be trying to make money off of you.
I know there are a million and one articles about this very topic, so I've tried to include some things that aren't as common. I strongly encourage you to figure out what you're good at and how you can monetize it. For a long time I read similar articles and thought I could never write a blog because I don't have any areas of expertise or special hobbies, but once I realized what I was "good at" was school, the articles started writing themselves! Who knows, your passion might even lead you in a different career direction, help you build professional skills, or lead to a full-time career after you graduate!
Related Articles: Funding Your Education, College Budget
Check out my other content >> The College Search, Getting Ready to Register, New Year's Resolutions?, How to Organize Your Time, How to Write a College Application Essay in 2021, How to Actually Use LinkedIn as a College Student
