Frugaling

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4 Top Ways to Save Money As a Student

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save money student

Going to college is going to be a big change for you. As a young adult, you are now responsible for keeping a budget, and managing your life on your own! While this is exciting, this is also a lot of responsibility. And if there is one thing you should pay attention to, it is the amount of debt you are getting into in order to pay for college. The less debt you have when you graduate, the easier it will be for you to build a strong financial future. So how do you save money as a college student?

1. Paying less for college

The one big ticket item when you go to college is college itself. Tuition fees, books, extra credits, … the list goes on. You can save on tuition by applying for all the scholarships you find. Be thorough in your research, as spending a few days filling up application forms, even if that leads to say “only” $2,000 in scholarships, is a great return on investment. Think about how long it would take to earn that kind of money flipping burgers!

There are many more ways to save money on college expenses, from paying less for essays, or for books by buying second hand ones, going to a state college or a community college for a few years, then transfer to your college of choice with higher tuition only for a year or two.

Of course, where to attend school is perhaps the biggest decision affecting cost. You could choose to attend a community college, then transfer to your college of choice after two years to save a ton of money. Another option is to go to a college in your state to avoid costly out of state tuition fees. And finally, you could pursue your entire degree online to save far more than you would in traditional, in-person degree programs.

2. Spending less time in college

The sooner you graduate, the sooner you can get a real job and start earning real money. People are often conflicted about unpaid internships because they may add value to your job application, but the truth is, if you can get a normal paying job, the earlier the better. Every extra month you spend in college is a month you pay rent, food, transportation, and all the extra expenses associated with being a student.

To spend less time in college, you can take college credits in high school, take extra credit while you are in college, or favor employment and experience rather than an extra year in college. Say you can spend three years in college and expect a $30,000 starting salary, or spend four years in college and expect $40,000. You can chose to start at $30,000, and work hard to get a promotion the next year, and hopefully $40,000. Even if you don’t, you will still have spent one less year in college, and have less student debt.

3. Saving on daily life

Life as a college student doesn’t have to be that expensive. The saying “live like a student” exists for a reason! You are young, and living with roommates, not having a car, having a basic phone plan, etc. are not such big sacrifices when you think about the benefit of graduating with little or no debt.

Every time you are about to swipe your card, ask yourself: “Do I need that? Can I get it cheaper somewhere else? Can I do without it?”. Shop at thrift stores or at the end of the market for discounted vegetables, turn the thermostat down, spend less time in the shower, turn off the light when you leave a room. Little amounts do add up.

4. Making more money

There are tons of jobs you can get around your college schedule. You can work on campus for reduced tuition, which is usually a great return on investment, you can work a classic student job such as a hospitality job, or you can work in a field you want to be in later, to gain valuable experience.

Once again, every dollar you make before graduating will reduce your student debt and help you get a great start for your adult life.

Save 20% at Starbucks Every Day!

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Starbucks Coffee Savings

Search for how to save money at Starbucks, and you’ll find millions of results. People love finding ways to cut their costs at a place they love. Some go to Starbucks to meet friends or to grab a quick pick-me-up at lunch. And for many, it’s a daily habit: wake up, grab a coffee, and drive to work. The company has carefully crafted a strategy of home, work, and Starbucks. Their goal is to have you spending significant amount of time at their retail stores.

Personally, I have a couple cups of coffee each day. Sometimes they’re from Starbucks, and sometimes they’re not. As a frugal person, it’s hard to see any purchased coffee as a thrifty choice. It’s not. To brew a pot of coffee might cost $.40-.50. If you get a tall coffee at Starbucks, that’ll set you back about $1.89 (and that’s just for a plain coffee). Of course, the frugal choice is staying home, but sometimes I like going out and grabbing one on the go. Sometimes there’s just something wonderful about working in a coffee house.

Regardless, my ultimate goal is to save every dollar and dime I can no matter the place. People tend to criticize Starbucks for being “too expensive,” but a cup of coffee is pretty reasonably priced. If I go anywhere else in town, I’ll be looking at about $2 or more for the same size.

It’s been two years since I last wrote about saving money at Starbucks. Much has changed with the company and my wallet since then. Nowadays, I can save 20% or more at Starbucks — every day. Here’s how you can, too.

1. Start with a cash back card (6% savings)

To achieve this level of savings, you must start with a cash back credit card. Personally, I use the Blue Cash Preferred card from American Express. This card is designed to give you 6% at grocery stores, 3% for gas, and 1% for everything else. I only use the card for grocery and gas purchases (bonus tip: the Amex card even works at Aldi to save me an additional 6% on groceries).

Now, you might be wondering how Starbucks could ever be considered a grocery store. How could someone actually net 6%? The answer takes a couple more steps to understand. Stick with me.

2. Buy an eBay gift card to purchase a Starbucks gift card (10% savings)

At a local grocery store, look at their gift cards aisle. If they’re like mine, you’ll find tons of options from Amazon, Chilis, and even Starbucks. But you don’t want to buy a Starbucks gift card yet; albeit, that’d net you a cool 6% rapidly. Instead, we need to buy an eBay gift card.

After buying an eBay card, search on their website for a Starbucks gift card. You’ll find tons of offerings. A good rule of thumb is 10% — that’s the expected discount off the face value of the card. This process takes time. To purchase an eBay gift card, then a Starbucks gift card, and wait for it to arrive at your home might take a couple weeks. For me, it’s worth it because I know I’ll eventually go to Starbucks again; when I do, I want to save.

3. Register for Star Rewards (5% savings)

In the last couple years since I wrote about saving at Starbucks, they changed Star Rewards. The process involved some chicanery, but the bottomline is they devalued their entire program. For every dollar spent, people earn two points. Once earned, you can buy almost anything with a reward (how about a venti fancy-frap or calorie-packed pastry?).

Based on my coffee calculations, it now takes 35 cups to get a reward. Ouch! This miniscule savings does help, though. By registering the card with an established reward account, you’ll save about 5%, conservatively.

4. Bring your own tumbler (5.3% savings)

I bring a reusable tumbler before I ever scan my rewards card. Thankfully, Starbucks provides a hearty 10-cent discount each time.

Want to look like you just got a Starbucks and be frugal, too? Starbucks sells a reusable tumbler for $2 (and I believe it’ll count for Star Rewards as a purchase).

Order a tall coffee for $1.89, and then it becomes $1.79. Ten cents might be laughable, but over time these costs add up. By using a tumbler each time for coffee, you’ll be saving about 5.3% more. If you forget your tumbler, order a short coffee (8 oz) to save about $0.10 off a tall.

5. Take advantage of free refills (50% savings)

Most coffee places don’t offer free refills. For registered Star Rewards members, cups of coffee can be refilled for free. Now, a $1.79 cup of coffee can become $0.90. Or, $0.60 if you really are looking to get your coffee buzz on!

Even without the refills, Starbucks becomes a solid option for those looking to have a cup of coffee while out on the town, crossing the country, or just looking to get a little work done. By combining these strategies, I save over 20% every day at Starbucks.

Do you go to Starbucks? What tricks do you have to save at coffee shops?

Living For The Moment – Not Spending It

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Photo of Buffalos - Herd Mentality

There are constant pressures to spend – especially as a twentysomething. Marketing companies have perfected the appeal to youthfulness and adventure. And sometimes people get trapped in façades of the “good life.” They buy expensive cocktails, go to clubs, and spend til the only thing that’s dry is their wallet.

I’d be lying if I said that doesn’t sound fun from time to time. It’s a blast getting to hang out with friends, blow off some steam, and recognize that life is finite. Let’s have fun when we can and spend in the moment. For a few moments we can pretend like the financial pressures of student loans, income inequality, and variable credit debt don’t exist. When we swipe, the worries disappear.

Why am I talking about spending like there’s no tomorrow? Because two days ago I read something that shocked my senses. An Elite Daily author, Lauren Martin, wrote an article entitled, “If you have savings in your 20s, you’re doing something wrong.”

The entire foundation was on the premise of partying hard, networking, and enjoying life when you can. Instead of saving money or contributing to a 401k, Ms. Martin advocated for being on the edge and nearly penniless.

She explained that you needn’t worry about saving at this time because later in life you’ll be making more. With great simplicity, a friend of Lauren’s says, “Don’t save money. Make more money.” From then on, she’s awakened to the idea that buying expensive items is her right and obligation. When she turns 40 and looks back on her twenties, she feels confident that it will all be money well spent.

Her article wraps up with 7 of the most egregious statements I’ve read about finances:

  1. “When you’re too worried about your bank statement, you’re not making your own.”
  2. “When you’re saving for yourself, you’re refusing to bet on yourself.”
  3. “When you have something to bank on, you have nothing to reach for.”
  4. “When you live your life by numbers, you strip yourself of poetry.”
  5. “When you die, you can’t take your money with you.”
  6. “When you deprive yourself, you don’t learn how to TREAT YO SELF.”
  7. “When you care about your 401k, your like is just a ‘k.’”

Giving Lauren the benefit of the doubt, her words can almost be read as aspirational and inspirational. You might think, “Yes, I’m going to live it up while I can and make a name for myself. I’m going to show everyone who I am. Watch out world!” But read them again, and you’ll begin to notice privilege, ignorance, selfishness, and myopia.

Perhaps most egregious of all her recommendations is the age-old line, “When you die, you can’t take your money with you.” The adage is right, when you’re dead, you’re all dead. Unfortunately, this author is missing many of the reasonable reasons to save. By socking away cash when you’re young, you’ll be better prepared for uncertain medical complications, job loss, and anything life throws at you. But even more, death brings an opportunity to give back. I intend to give what I can to charities and offer the rest to family. If, instead, I spent it all on drinks in my twenties, I’d have nothing for either.

The second line I want to focus in on is, “When you’re too worried about your bank statement, you’re not making your own.” Presumably, Lauren’s suggesting you must spend money to make a name for yourself. Whether it’s the expensive clothing she purchases or fanciful “networking” opportunities at restaurants, she seems to know how to make her own statement.

But making a statement is complex in a society bombarded with advertising. Being unique requires constant reanalysis of culture. To be countercultural and your own person is actually difficult when certain brands aim to sell to that exact demographic. The good news is that statements needn’t cost anything. I can make a statement by saving, and that might be the most powerful of all.

The Internet is vast and diverse. Finding voices that encourage wanton spending is easy. What took me by alarm and spurred a response was two-fold. First, the article was published on a fairly popular news and opinion website. Second, the article had been shared over 35,000 times in two days. Lauren hit on the pulse of a large group of twentysomethings. Her article explicitly supported spendthrift ways. Anyone that needed an excuse to empty their wallets could find solace in her words.

We’re constantly at a precipice between spending and saving. Each day we are confronted with this choice. We can spend our savings away in a flash of 20s, or save for the many moments that life brings. To break away from the herd mentality and save can be challenging, but the choice is ours.

$200 Frugal Food Budget for May

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Korean BBQ Food

Why I reduced my food and drink budget

In December I sat down and said, “enough.” I needed to cut back on my food expenses. Seriously, it was embarrassing and hurting savings. Every month involved hundreds of dollars in restaurants, fast food, and snacks on the go. When I finally shared it with you all — the readers of Frugaling — I felt nervous. How would people react? It was one thing to spend the money privately, but to openly disclose it made me anxious.

As the year turned from December to January, I knew that I needed to change spending habits. It was time to start saving, cutting, avoiding, and scrimping here and there. Likewise, I wanted to avoid debt at all costs, and recognized that in the next couple years I’ll need to spend thousands in job interviews, moving expenses, and rent. I couldn’t continue spending like mad, and actually afford these future hurdles. To be clear, “affording” means spending money on something without debt.

There was little room to save on rent or educational expenses. Additionally, I had sold my car, gotten rid of insurance payments, and moved on from any semi-optional expenses. The only piece left was the food budget. Darn it, though! I didn’t want to cut back for years.

When I first started the journey, I picked a number. It was somewhat random, but I wanted something exceptionally challenging and possible. I needed to eat healthily, too. So, I chose $200. That would be more than a 50% decrease in my budget for food and drinks.

Here’s a review of previous months

Monthly Food Budget Chart

When January started, I holed up and tried to by some basics. But as the month continued, I realized I was severely underprepared and over budget. I wasn’t eating out frequently, nor was I buying lavish foods. Still, I didn’t know how to budget for this new level and ended up well over the line. Even though I had saved about $100 in one month, I knew I had more work to do.

Over the following months, I tried harder and even came pretty darn close to the tough goal. In February I was able to get within $12 of the budget through some serious cost-cutting and sacrificing. Frankly, I felt an internal pressure towards the end of the month. I knew I’d be close, and wanted the chance. My food stocks grew dangerously low and the repetition of the same foods night after night wore me down.

From then, my spending grew and it’s stayed above my $200 budget goal. It’s been one of the most frustrating parts of my budget and frugal goals. I know, understand, and see countless examples of individuals and families doing better. And there’s this guilt, as I’d like to live modestly. An expensive food and drink budget smacks in the face of that value. Plenty live on less. Plenty of live on less than they need. And I don’t want to live some lavish alternative life — above it all. I want to be in it. I want to feel the cuts.

The May food budget… Failure?

Now, I turn to May. Oh, May, you pesky month! This fifth month of my food and drink budget tired me. The middle of the month represented the end of my third year of graduate school. For us students, it was cause for celebration. And celebrate, we did.

Here’s a review of this month’s spending:

May Food Budget Table

Part of the graduate school tradition at the end of the year is to go out, eat, and drink. Soak up the momentary freedom. This can be a challenging environment to save in, but it’s challenging not to seek out these moments and live them up when you can. Busyness prevents many of us from congregating as large groups. These moments are unique and special. When possible, I tried to go without or only one drink, meal, etc.

Nonetheless, as the table shows, the final total was $247.37. While an incredible $200+ decline from when I started this journey, I still couldn’t meet the goal.

Looking forward and long-term tracking

Because I’ve shared my budget a few times before, it’s not quite as embarrassing anymore, as it is personally frustrating. I’ve seen great benefits from trying to save. Hundreds of dollars have been invested, which were previously squandered. I feel healthier and eat foods that suit my own body’s needs. I do feel like a more modest person, and constantly try to recognize that I’m still privileged to have a full meal. Many do not share that luxury.

Another piece that I’m appreciative of is the tracking. Now, I can look back on my spending and clearly see where it’s spent. There are clear totals. Month after month, I can create a better average of spending versus one month’s test. In fact, my average spending for these five months was $264.78. That’s amazing to me, as I’ve never spent this little since high school. More importantly, the average is what I want to continue to reduce.

My friends and family continue to ask about this food budget. “Will you continue?” they ask. “Are you still doing that food budget thingy?” Why yes, I will continue. And yes, I’m still doing that food budget thingy. Maybe for the rest of my life, too.

June will be a tough month, as I’m traveling much of it. I’ll track and share, but I might need to pass for some increased spending. Sorry Frugaling fans! I hope you’ll forgive me. In July I’ll hunker down even further and do everything in my power to save.

How have you been doing on your food budget? What snags and troubles have you experienced? What are your recommendations for saving more? How do you rope people into joining you for your food budget? What motivates you?

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