Money Saving Tips for Recent Grads
Graduation season is upon us, and for many students that means it’s time to tackle the next step in your life, whether that be saying goodbye to high school and moving into your freshman dorm, or framing your college diploma and joining the working-class world. No matter what stage of your student life you find yourself in, chances are your finances are playing a big role in what you do next.
College tuition can be an intimidating topic for many high school students looking to apply to their dream schools, and student loan payments are often the dread of every recent college graduate. GFA wants to see you succeed in whatever you do next, and for that reason we’ve compiled a list of things you can do (or not do!) to save a little extra cash that can be put towards your education.
For soon-to-be college freshman:
- Rent your textbooks - Always try to rent used textbooks rather than buy new ones – new editions of these books come out every few years and their value could decrease drastically before you have a chance to sell it or loan it to a friend who takes the course after you.
- Don’t eat out all the time -Try to limit the amount of times you and your friends eat out during the month – as a college freshman you’ll most likely have a fairly substantial meal plan with lots of dining hall swipes. We know the concept of being able to order pizza to your dorm room whenever you want is new and exciting, but try to limit it to pizza night with friends once a month where everyone chips in.
- Pay off your credit card- If you’ve recently signed up for your first credit card to use for emergencies only, try to limit it to just that. That credit limit may seem tempting, but credit cards often have large interest rates which grow quickly. If you use your credit card, pay it off right away. It will also help you establish good credit.
- Go to class! - You’re already paying for it, and not going because you don’t feel like getting out of bed is like throwing money out the window!
- Make your own coffee- If you’re one of those people who needs coffee in the morning to get you going, invest in a coffee maker for your dorm room. Not only will you be able to skip the Dunkin or Starbuck’s line, but you’ll save money too.
For recent college grads:
- Save every penny - For most lenders, student loan repayment often begins six months after the date of your graduation. If you’re lucky enough to get a job right out of school, save every extra penny! As soon as those loan bills start coming you’ll be glad you had a little extra stashed away to start paying them down.
- Plan a budget – After you’ve gotten your first few paychecks and you’re able to estimate your monthly expenses, sit down and create a spreadsheet to organize and allocate where your money should be going each month. Be sure to put aside some extra cash for unexpected expenses and emergencies as well.
- Split your rent – The idea of having a roommate may not be as exciting now that you’re out of college, but if you can find a friend or someone you trust who is also looking to live in your area, find an apartment together and split the rent costs. Just make sure they also share cleaning responsibilities too.
No matter where you are financially, it is always a good idea to save money for a “rainy day”. You never know where life is going to take you in the future, and what unexpected costs associated with your education may come up. You may want to study abroad for a semester, or you may decide three years after getting your bachelor’s degree that you want to go back and get your master’s. Don’t let money be what’s keeping you from reaching your educational goals. Make smart financial decisions and you’ll be well on your way to achieving success.
Good luck to all graduates from the GFA Team!