A Guide for College Students on How to Rent, Budget, and Save Money

College is an expensive endeavor. From tuition to housing to books, it may appear that the cost of your education is simply not worth the investment. The financial burden has risen steadily, leaving many students in debt by the time they graduate. 

However, there are numerous ways to save money in college that do not involve simply putting money into a savings account. Students can make wise financial decisions in their daily lives to help offset the financial strain of a college education. Being aware of your expenses earlier in life will provide you with better money management skills that will serve you well after college. Follow these tips on renting, budgeting, and saving to make better financial decisions as a college student.

1. Renting

Never rent a place that you can’t afford. Rent will be your biggest monthly expense so before you sign a lease, make sure you can actually afford a particular apartment. How do you know how much rent you can afford? Well, as a rule of thumb, you should not be spending more than 30% of your monthly income on rent. If you’re a college student on a tight budget or working a part-time job, you should look for the most affordable place you can find.

The idea of living alone is appealing, but it is significantly more expensive than living with a roommate. A one-bedroom apartment, for example, could probably be rented for $1,200, but a two-bedroom apartment is only $2,000. If you shared a room, your personal cost would be $1,000, saving you $200 per month over a one-bedroom apartment. That’s a big deal over time — $2,400 per year adds up quickly.

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Living close to campus is one of the best ways to save money on daily transportation costs. That way, you can save the most money by walking to college. But, rentals for students close to campus may be more expensive in terms of rent, so do the math to ensure that the savings from living closer outweigh higher transportation costs.

Inquiring with a Realtor about available apartments for rent can be beneficial. A realtor will be able to assist you in creating a list of must-haves and deal-breakers for an apartment for free. They will also most likely have a few listings in mind, making the process much easier. A Realtor can also help you avoid shady apartments or contracts that do not seem right. Whether you choose one of the listings they’ve shown you or not, you’ll get a sense of what apartments in the area are like and what the renting process entails.

While you may want to make your room look nice and cozy, decorations are expensive and have no real value other than to look nice. Just don’t decorate if you’re trying to save money. Many people spend hundreds of dollars decorating their apartments and houses only to throw it all away and redecorate the next place when they move. Save your money on decoration until you move to a place where you know for sure you will be staying for a long time.

Having a good credit score is one of the keys to saving money on loans, getting a good rental, and other things. So, you should always remember to pay rent on time and try your best to avoid owing any payments. The ultimate goal is to have a high credit score when you graduate from college in order to save money in the future.

2. Budgeting

The first step of creating a budget is to make a list of possible expenses for a month. College supplies, rent, transportation, food, clothes, and any discretionary spending are typical expenses for a college student. Other expenses include gas, gym membership, phone, or internet costs.

You may be working a part-time job or an internship while in college to help pay for your education and cover living expenses. Grants, scholarships, loans, or a monthly allowance from your parents may also provide you with income. The amount of money you bring in each month is an important part of your budget because it establishes how much you can afford to spend.

After tracking your total income and expenses, cut back wherever you can. Underestimate the amount of money coming in and overestimate the amount going out for your monthly necessities. This will help you to cut back on unnecessary spending and ensure that you have enough money to pay all of your bills on time. Limit takeout orders and cancel streaming subscriptions you don’t use on a regular basis. You may also want to adjust some fixed expenses that have variable costs. To save money on groceries, clip digital coupons ahead of time and choose store-brand items over name-brand products. If you’re looking to relocate, search for an apartment with a lower rent.

If you know you want to make a large purchase, make a point of putting some money aside first. Don’t stress yourself out by leaving the payment until the last minute. This helps to alleviate the stress of later financing. If you have money left over after creating your budget, consider paying down debts like credit card debt. Your credit card debt does not have to follow you after graduation. You may have accumulated charges that now appear insurmountable so what you need now is a strategy. Considering the current financial situation and budget, you can begin chipping away at your debt. And, if you are overwhelmed, you can use credit card settlement services to aid you.

3. Saving

You are not alone if you are struggling to make ends meet in college. Rising tuition and living expenses make it increasingly difficult for students to maintain a budget. That doesn’t mean you have to go broke in college; there are plenty of great ways to save money.

If you already have a checking account, you might be surprised to learn about the fees. Many banks waive those fees if you are a student or have a direct deposit or other accounts with them. Other banks, however, do not. You must open a free checking account. This is a starting point for saving money; you should never pay for banking. Banks can make money in a variety of ways, but checking and savings accounts should not be one of them.

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Don’t overdraft to protect the money you already have. An overdraft occurs when you spend money from your account that you do not have, and banks charge a fee for the transaction. So, not only are you going into a little debt, but your bank will charge you an overdraft fee, which can be $25 or more.

The FAFSA is essential for obtaining financial aid. If you do not fill it out, you will most likely not receive any type of financial aid, including student loans. That is why you must complete the FAFSA each year you attend school. Filling out the FAFSA is a breeze. What most people don’t realize is that even if you don’t receive grants or scholarships in your first year, if your financial situation changes, you may be eligible for financial aid in subsequent years.

Textbooks can be one of your largest expenses each semester, with some math and science textbooks costing more than $200 brand new. This is a large area with a lot of potential for savings. The two best ways to save money on textbooks in college are to buy used books or rent them. There are numerous places to purchase used textbooks. It is also possible to rent the college textbooks you require for the semester.

There are so many places that offer student discounts, but so few people take advantage of them. Restaurants, shops, movie theaters, theme parks, and other attractions are among them. Check to see if there is a student discount before you pay. In most cases, all you need to do is show your student ID, and you’re good to go. This is a straightforward method for saving money in college for the sole purpose of attending classes. If you need to use public transportation, see if you can get a student pass. Many colleges collaborate with their local transit authorities to provide student discounts and student passes for buses, subways, and more.

Author Bio: Lyle Solomon has extensive legal experience as well as in-depth knowledge and experience in consumer finance and writing. He has been a member of the California State Bar since 2003. He graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, in 1998, and currently works for the Oak View Law Group in California as a Principal Attorney.