Five Financial Tips for Freshmen
We all know that being on your own for the first time can lead to spending temptations. Whether through mismanaged bills or adventurous desires, it’s very easy to overspend while in college. With new opportunities and new costs, first-year students often find themselves exceeding their allotted budgets. However, there is good news. By following these five easy tips, I can guarantee your success as a new financially responsible adult!
First, for those who don’t live within driving distance of campus, your biggest expense will be plane tickets. These can range anywhere from $100 to $500 one-way (even higher for international students). You should absolutely book all flights you plan on taking well before the semester begins. Not only will this help solidify your schedule, but it will also drastically reduce your costs. Let’s say for example, that I planned on flying back to St. Louis for both Fall Break and Thanksgiving. If I booked all six of my necessary flights for the fall semester right now, my estimated cost would be around $900, but if I waited to buy the tickets until the month before each trip, I would be looking at an estimated total cost of $2,400. Therefore, by simply booking flights well in advance, you can more than halve the total cost.
The second largest expense you will incur are textbooks. For those of you who don’t know, all the necessary textbooks you’ll need for your classes can be found on your school’s portal. My first rule for textbook purchasing is to NEVER buy them from the on-campus bookstore. You are likely receiving the highest possible price by buying them in the 5C bookstore even though they may tell you that the rental program is a bargain. The cheapest alternative is to purchase the least expensive “used” option on Amazon well before the semester begins. While this may be difficult to do your first semester, this policy is definitely one to adopt in the future. The Pomona College financial packet that everyone receives describing the estimated net cost of attendance lists the average textbook cost to be about $900 for the academic year. To be frank, if you’re spending more than $200 a semester on textbooks, you’re being ripped off and throwing away money. By simply using the ISBN numbers provided by your teacher on the portal, you will be able to buy the books you need on Amazon, or other third-party sales companies, for a fraction of the cost. If you buy used, and buy early, you will be able to drastically reduce your total textbook costs.
Now that the basics have been covered, let’s delve into day-to-day money-saving opportunities. First and foremost, always use all the meals you have on your meal plan before paying for meals either on or off campus–remember, you have already paid for your meal plan through your room and board payment at the beginning of the year. Every meal you don’t use is money thrown away. Make sure to use all of your meals and take a piece of fruit or other small item on your way out of the dining hall, which will serve as a “free” snack later in the day. That way you’ve made the most of your pre-paid meal plan. This may seem like simple and common sense advice, but you would be amazed how many 5C students don’t fully utilize the meals they’re allotted.
Next, limit your off-campus meals to at most one per week. I know it’s tempting to eat out frequently since the options are very enticing and the dining hall food can eventually get repetitive, but I implore you to resist. Eating out is the easiest way to see a planned budget disappear. If you allot about $10-15 per week for a meal off-campus, that sum is a very manageable monthly expense. However, even if you simply double that figure by going out twice a week, you’re looking at a monthly expense of close to $100. Use the dining halls to your advantage and make going out to eat an event to remember as opposed to simply another meal. That will augment both your experience and bank account.
Last but not least, keep a precise budget of your spending for the semester. Personally, I use an Excel spreadsheet to document my every cost, but I realize that’s probably overkill and too tedious for most college students. With that in mind, I recommend finding one of the hundreds of budgeting apps on your phone to keep track of your expenses. Just as keeping track of everything you eat will reduce the amount you consume, the same effect applies to spending. If you get into a habit of recording all your costs, you will naturally be more mindful of your budgetary needs.
These five tips will help you manage your college spending and create good habits for life outside of academia. Don’t fret if budgeting seems daunting at first. Just slowly try to implement as many of these tips as possible to reign in your costs. Using this advice, you can cut your total living expenses in half each semester and save upwards of $12,000 over the course of your undergraduate education.