9 smart ways to save money as a college student

Even if you’re a college student with a limited budget, saving money is essential for a financially secure future.

David Wangberg, personal finance coach at Wangberg Financial Coaching, said saving and building wealth today provides “more options and freedom” after college graduation.

With these money-saving strategies, you’ll be able to reduce everyday expenses and build healthy financial habits that will last long after graduation.

What are the best ways to save money as a college student?

You don’t have to implement every strategy at once. Even adopting a few can lead to meaningful savings over a semester or academic year.

Here are nine of the best money-saving strategies for college students:

1) Create a realistic monthly budget before you start spending

A budget is a spending plan based on your income and expenses. It can help ensure you have enough money to cover your needs, wants, and priorities.

To create a budget, jot down your monthly income and how much you spend each month on essentials, such as food and rent, as well as non-essentials like restaurants and entertainment. Then, decide on the type of budget that makes the most sense for your situation.

With the 50/30/20 budget, for example, 50% of your income goes toward essential expenses, 30% to wants, and 20% to savings and debt repayment. Another option is the zero-based budget, where you assign every dollar to a specific purpose.

Keep in mind that your budget is not set in stone. It will change over time as your life changes throughout your college experience and beyond.

“If you learn how to save money now and make adjustments as you go, you can set yourself up for success after graduation,” said Phillip Durbin, financial educator for Learn Money Basics.

2) Open a savings account and automate small deposits

By paying yourself first, instead of randomly saving anything you have left over each month, you can save consistently and grow your savings in college.

To simplify the process, automate small deposits every month into a high-yield savings account. Don’t worry if you don’t have a lot of cash to contribute. Even small amounts like $10 to $25 add up over time.

If you earn a raise at your job, receive money for your birthday, or receive another financial windfall, you can increase your transfers.

LEARN MORE: Best high-yield savings accounts for college students

3) Take advantage of every student discount you qualify for

Even though they’re common, student discounts are often overlooked.

In many cases, you can save anywhere from 10% to 20% or even more on technology subscriptions, restaurant meals, public transportation, streaming services, and entertainment with a student discount.

“Simple Google searches or asking around can help you save so much money,” said Durbin.

Before you make a large purchase, find out whether you’re eligible for a student discount. The money you save can help you reach your savings goals.

4) Spend less on textbooks and course materials

The cost of textbooks and other course materials can add up quickly, especially if you’re a full-time student enrolled in multiple classes at once.

To find cheaper alternatives, explore used textbooks on websites like SluggBooks or Chegg Books or consider campus libraries and Open Educational Resources (OER). Also, shop around and consider renting your books or using digital editions instead of hardcovers.

“Group study sessions can be huge for saving on textbooks. Find people within your major and coordinate. Be fair and real about how much money you can save by pooling your study materials,” explained Durbin.

Once you finish a class, sell your textbooks through your school’s bookstore or through social media or resale sites.

5) Cook more meals instead of eating out

“You don’t have to eat ramen and macaroni and cheese every day. However, you want to make sure that you aren’t spending $60 a day on takeout when you have a limited income,” Wangberg said.

By meal prepping and cooking as much as you can, you can save money on food expenses. Just make sure you go to the grocery store with a list, stick to store brands, and avoid food waste. If you have roommates, sharing grocery costs with them can also help.

6) Find flexible income opportunities that fit your class schedule

These days, there are countless ways to earn money as a college student. Many options, like tutoring and babysitting, are flexible, so that you can fit them in around your class schedule and other obligations.

Internship opportunities are also worth exploring as they can allow you to gain real-world work experience, build your résumé, and pad your savings. In addition, look into campus jobs, freelancing, and seasonal work like holiday retail, landscaping, and lifeguarding.

If you do find a way to earn an income, be sure to allocate a percentage of your paycheck to savings instead of spending everything.

7) Cut unnecessary subscriptions and recurring expenses

Chances are you’re paying for gym memberships, streaming services, and other recurring subscriptions you don’t use or need. Take a close look at your recurring spending to determine what you can cancel.

If you need (or want) to keep a subscription, see if you can share a plan with a family member or close friend. Also, if you sign up for a free trial of any product or service, cancel it before it renews if you don’t want to continue paying for it.

8) Use credit cards responsibly to avoid expensive debt

Using credit cards responsibly can help you build credit while in college, which may help you qualify for a mortgage, car loan, and other products after you graduate.

However, they’re only beneficial if you pay off your balance in full every month. If you do decide to use credit cards to cover your expenses in college, be careful to avoid overspending. Overspending and carrying a balance can lead to high interest charges and a cycle of debt.

“If you can’t afford something with the income you currently have, or the cash that you have saved specifically for college, you can’t afford that item. Putting it on a credit card puts you at risk not just for debt, but also for overspending,” explained Wangberg.

9) Build an emergency fund while you’re still in school

“Life will happen, even when you’re in college. You’ll have unexpected expenses like a car repair that you’ll have to cover. Build up an emergency fund and be ready for them so you don’t have to fall into credit card debt to cover it,” added Durbin.

According to Wangberg, a three-month emergency fund, consisting of your monthly expenses multiplied by three, is ideal. Windfalls like tax refunds, birthday money, and bonuses can help you grow it faster.

If three months of expenses is out of reach, consider starting with a smaller goal, such as $500.

“If you’re struggling to achieve that goal, that’s fine. A one- or two-month plan also works. Just have something for when the unexpected happens,” added Wangberg.

LEARN MORE: Best emergency fund accounts

Common money mistakes college students should avoid

Saving isn’t only about earning more — it’s also about avoiding costly financial habits, such as:

Spending student loan refunds on non-essential purchases

Even though it might seem like it, a student loan refund is not extra spending money. If your refund includes federal student loan funds, that portion is borrowed money that you’ll generally have to repay with interest. If you don’t need those funds for education expenses, consider returning the excess loan money. For federal Direct Loans, returning funds within 120 days of disbursement can reduce the original loan amount, along with applicable interest and loan fees.

Missing credit card payments

If you decide to use a credit card in college, make every payment on time, every time. Otherwise, you could face interest charges and dig yourself into debt. Wangberg is hesitant to recommend credit cards to college students for this reason.

“Credit cards can open the door for college students to accrue debt. And if they don’t pay it off in time, then that interest is going to hit them hard,” Wangberg said.

Ignoring bank fees

Some bank accounts charge fees such as monthly maintenance fees, nonsufficient funds fees, and paper statement fees. Before you open a checking or savings account, make sure you’re aware of any fees that might apply. Ideally, you’d find fee-free checking and savings accounts.

Impulse shopping

Buying an outfit you saw on a social media ad or a new lip balm in the grocery line every once in a while is no big deal. However, too many impulse purchases could derail your savings goals in college. If there’s something you want to buy, make sure you can truly afford it. If not, you can always wait until you have the funds.

Not tracking spending

It can be difficult to save money if you have no idea where your funds go every month. That’s why it’s a good idea to monitor your spending through a budgeting app or old-fashioned spreadsheet. Review your spending at least once each week. Doing so could open your eyes to valuable savings opportunities.

Waiting too long to start saving

The sooner you start saving, the easier it will be to build healthy financial habits and reach your goals. You don’t want to miss out on the power of time and compound interest just because you waited too long.

Start building financial habits that will benefit you after graduation

The habits you develop in college will likely carry into adulthood.

By budgeting, saving consistently, and making informed banking decisions, you’ll find it easier to achieve short- and long-term goals, such as renting an apartment, buying a car, or building an emergency fund.

“The number one life-altering choice you can make is to learn how to manage your money. It’s never going to get easier than right now. Put yourself ahead of the curve, so when it does get tough, you know what you’re doing,” Durbin added.

LEARN MORE: Best apps to help students save money and manage their finances

Frequently asked questions about saving money in college

How much money should a college student try to save each month?

Factors like your income, expenses, and financial goals will determine how much you should save in college each month. However, even saving a small amount consistently is valuable.

What is the best bank account for college students?

As you look for a bank account as a college student, prioritize accounts with no monthly maintenance fees or minimum balance requirements and ATM access. For savings accounts, also compare APYs. Accounts with mobile access that allow you to manage your money while on the go are also important.

Is it better to pay off debt or save money while in college?

While in college, your goal should be to balance building some emergency savings with paying down high-interest debt. Once you pay off your credit cards or other high-interest debt, you may find it easier to meet your savings goals.

How can students save money without getting another job?

Budgeting, meal planning, using student discounts, negotiating bills, and reducing unnecessary expenses are all ways to save money in college without getting another job.

What are the biggest expenses for most college students?

Common expenses for college students include tuition, housing, food, transportation, textbooks, and entertainment. Reducing spending in these areas can help you save more money while in school.