Saving (Earning?) Money in College

First- thank you all so much for reading! I couldn't believe how many hits this blog has had lately! So a HUGE thank you, I hope you're finding it interesting. If you read it frequently will you follow it if you can? It lets me know who I'm writing to! Again, THANK YOU!

OK- I tossed this blog idea around for quite some time before I decided on actually writing it. I wasn't sure if there was too much of a "well, duh" element to it, and when I laid these plans out for students in the past it was met with some... well, ok... a lot of resistance.

Back story: when I was in student services students frequently came to me complaining that they had no money. They would frequently ask if there were any types of county assistance programs or aid for people in their situation. First off my answer was: unless you have several children and are in pretty dire straits then no... because you are already receiving aid from the government in the form of your student loans. And typically those places that give out aid figure that if you can afford to attend college, you can afford to feed yourself.

That being said, I would ask students about a few lifestyle changes that they could consider making. This is where the resistance comes in, because it does require something of a lifestyle change. But then again, I figure you're attending college and life doesn't always go on as normal... and hey, if you learn some good financial habits while you're in college then you're going to set yourself up pretty well for life. (OK, I will step off the soap box now.)

Here is what I suggested to the students:

#1- Lay out a budget. Exactly (don't round) how much is coming in.
Then lay out what you spend money on. The key here is being truthful with yourself. Do you eat at McDonalds 3 times a week at $5.13 each time? That's then $15.39 per week you're spending there. The idea here is not to do any cutting yet, but simply to know exactly where your money is going. If you have online banking it's helpful to print out your last month's transactions.

#2- Prioritize. Do you have a rent payment? That should be up in the top 3. Do you have school bills? Them too. Discretionary spending (restaurants, music, entertainment, and yes, beer) go towards the bottom.

#3- Figure out where you can save. What would that $15.39 get you at the grocery store? I bet it would cover a loaf of bread, some sandwich meat and some kind of dressing... and enough for the entire week, not just 3 days. Reaction: "I don't have tiiiiiime to make a sandwich in the morning" or " I don't liiiiiike sandwiches". I timed myself making a packed lunch one day. I did it (and put everything away) in less than 2 minutes. It's just a matter of making yourself do it.
Eating out, for the record, is defined in my book as anywhere you did not make the food.

#4- This goes with #3. At the grocery store, can you buy unprepared foods? Because the frozen lasagna dinner is going to be quite a bit more expensive and you'll get less leftovers from it (i.e. dinner for 4 nights rather than 2) than simply making the whole thing yourself. Yep- learn to cook. Reaction: "I can't cook". Well, this is a great time to learn. BONUS: it will impress a future significant other. Trust me. Another tip? Go in with friends. Get 5 people, each contribute $2 and you can make a pretty fantastic dinner for all of you! (Spaghetti: $1.00, Sauce: $2.50, Ground beef: $4.00, bread sticks $2.50= dinner for 5 for $10)

#5- Can you walk (or bike) anywhere rather than busing or taking the car? This one is from my experience: my first undergrad school I walked EVERYWHERE. I was about as broke as they come and didn't have money for bus fare, so I hoofed it. And you know what? I got in pretty dang good shape doing it. Reaction: "I don't have tiiiiime" or "I can't walk that far!" (That was from a student lived less than a mile from campus) It might take you a little time, but figure out what you spend on gas, and if you can get around that by getting up 15 minutes earlier and walking you're going to save a bunch of money. I know it's not possible in every situation but it's something to really consider if it's possible. Oh, a second hand bike works pretty good for this too.

Part two to the car: Beyond gas, cars have expenses. You need to change the oil sometimes (Yes, you really do...). They break. They need new tires. The less wear and tear you put on your car the less you have to do these extra added expenses!!

#6- Just say no. Your friends won't hate you if you have to say no to going out one night because you simply can't afford it. They might even have a little more respect for you! Is it crappy that you can't always afford to hit the bar/club/dinner with your pals? Yep, but if it's a night at the club or your rent payment, well... I'd rather have a roof over my head all the time than one night.

#7- CDs/MP3s/Video Games are not a necessity. Reaction: "Yes they are!" No... they're not. I almost fell off my chair and refused to help a student figure this out once when he told me the week before he bought an $80 video game and this week he couldn't figure out how to find money for groceries. No sympathy whatsoever.

#8- Share the rent. I learned the hard way in college that having roommates is much cheaper than living alone. I lived alone, which admittedly was nice but expensive, for a while then simply couldn't afford it and had to suck it up and live with someone. I didn't always like it but it really opened my eyes to different lifestyles and forced me to grow some new social skills. Reaction: "I don't know anyone here!" Honestly, that's OK. If you're generally compatible on the first meeting you will be OK. Remember this doesn't have to be your best friend (and I don't recommend living with that person either), just someone to share the rent with.

Reflection: I did have one student take my advice on the grocery store and walking bit. Within a month he came into my office, said he was actually SAVING money now, had lost 10lbs and felt better than he had in a long time which was also reflecting in his grades. Funny how that works!

OK, enough saving money, let's MAKE some money now. This often entails trying to find a job... which adds one more thing to your plate while you're in school. The unfortunate thing about growing up is having to juggle more than one thing at a time, such as being at classes and then being at work.

#1- Try for a job on campus. This will eliminate driving/bus and the gas it takes to get there. Also, campus jobs are more likely to let you do homework during slow times. (Depending on your boss, of course.)

#2- If you can't get one on campus see if you can get one within walking distance of your house or the school.

#3- Donate plasma. Hey, $20 is $20, right?

#4- Did the Freshman 15 put you out of a few pairs of jeans? Bring them to a second hand store and see if you can get some cash for them. (Just make sure you still have something to wear!:))

#5- Try to find a job where you can work full time in the summer or over breaks. I know that's not fun but if you can squirrel away some money over that time you can work less hard during the other times.

Lastly:
Overage on student loans is tempting. I know it is. It can allow you to not work during college or get a little nicer apartment... but if you can get away with holding a part time job to pay the rent instead of taking the overage do it. You will thank yourself down the road. I did that and now I'm looking at an extra almost $5,000 to pay back, which translates into a few more years (YEARS!) of loan payments.