6 Ways to Save $ at College

Going to college or university costs money.  Tuition and books prices have been increasing at about 2 to 3 times the annual inflation rate for the decade and a half.  In Canada tuition is kept relatively low because universities and colleges are heavily subsidized by the federal and provincial governments.  Usually the greatest costs for students are not directly related to school: rent, food, vehicle and entertainment.

Here are 6 ways that students can save money while going to school:
1.   Room mates.  A 2 bedroom apartment can cost over $700/month, plus some utilities, meaning just living quarters are about $450 per month.  If there are 2 people per bedroom, you cut the cost per person down below $250.  I once shared a house with 6 guys, and our rent was down to $150 a piece.  It worked well for us since most of us were at the library, lab or work most of the time anyway.

2.  Food.  As convenient as it is to have microwaveable quick food, those pizza pockets and microwave dinners cost money.  It is far less expensive, and healthier, to buy real food and cook it.  A little bit of extra time spent on meals can save a lot of money, and provide the health benefit of helping you to think more clearly while you are in class or working on homework.

Attached to the food topic is avoid eating out.  Even having a cheap sub sandwich adds up, unless you have half at lunch and half at supper.  Eating out once or twice a week can easily add up to over $40 more each week that you could save by doing a home party or something besides going out to eat.  Add alcohol onto the bill, and that will add at least another $20 per week.  That is over $240 per month just at restaurants, when eating at home could cost less than half of that.

3.  Vehicles.  Having a car while going to school is incredibly convenient, especially if you are not from that city.  However, a vehicle is quite costly.  Insurance, gas, maintenance, and parking are all expenses that add up.  When I went to college the insurance cost me $150/month (I was 22) and gas was another $40/month, and I didn't go on any big trips.  I didn't keep track of the maintenance, but it was a 10 year old K-car and I was in at the garage every second or third month for something.  It isn't convenient to go without a vehicle, but it will save you a lot of money.

4.  Entertainment.  Whether it is going to the bars, the movies, restaurants or buying video games, all of these things will cost you money.  Add on the number of students that go skiing or on a spring break trip to warmer weather, and you are using up a lot of money when you have little to no income.  Be careful with spending in this area, because while these activities are fun, they are a straight cost.  There are often low cost campus activities (Sports, clubs, events...) that are fun and located close to school.

5.  Books.  University and college bookstores have a high mark up that helps pay for the bookstore.  This costs you more money, especially when a new version of most textbooks come out every second year, outdating previous ones quickly.  If you can get your class book list early, order your books through Amazon.ca or go through the many other websites that offer them second hand.

6.  Avoid interest and late fees.  Try not to use your credit card.  They will be freely given to you when you start school, but the cost of using them is far from free.  Having one or two is not bad, but don't get used to using them.  Also, pay your bills on time.  Late fees and interest add up and are usually unnecessary.  Plus some of those late bills will report on your credit history and get you off to a bad start.

Going to university or college can be one of the most challenging and enjoyable periods of your life.  Enjoy it, take advantage of the new experiences, but don't leave school owing a pile of debt that will drag you down for the next 12 years.  A few years of fun shouldn't leave you with a dozen years of difficult debt.  Trust me, I'm telling you this from experience.   I am very happy I went to school, got my education and had the experiences I had there, but I wish I could have left with a lot less debt.  Paying student loans back was difficult, and those difficulties impacted me and my family for 10 years after I graduated.  I wish I had learned the lessons above earlier.  Jerry