When you’re in college, you may think you don’t need to focus on managing your money until you’re in the “real world.” However, this couldn’t be further from the truth, and no one knows that fact better than the people who’ve been there before you.
What do recent grads wish they could redo in college when it comes to their finances? We got five of them to weigh in on the number one thing they wish they’d known about money when they were still in school.
1. Use Your Campus Discounts
“Take advantage of your school provided commuter resources if you commute, especially if you’re going to college in a city. Always use your student ID for discounts when available.” – Kyle, Emmanuel College ‘16
Many colleges list student discounts somewhere on their website, but even asking around can get you some money-saving results, and if you’re looking for discounts available to all students, this list is a great one to check out.
2. Factor in Moving Costs
“I really wish I had known how expensive it is to move. I got a job in NYC that started a week after I graduated and so the moment I left campus, I moved to the city. There are so many hidden fees in moving (truck rental, gas, broker’s fee, security deposit, furniture). I spent my senior year saving up for rent, but I wish I had budgeted more for the initial moving cost.” – Hannah, Wesleyan University ‘15
It’s not just moving after college that you have to worry about; living off-campus (and even on-campus in some cases) can be an expensive endeavor depending on where you’re located and how generous (or not-so-generous) your landlord is feeling.
The best thing you can do to protect yourself from costly moving fees? First and foremost, do your research; ask friends who’ve previously moved what moving company/transportation they used, what surprising deposits they had to make, and what issues they had with their leases, and above all else, remember: Get everything in writing!
3. Learn How to Budget (or at Least When to Splurge or Save)
“I wish I knew when to cut corners, and when to splurge. Saving on weekday lunches is a great way to make sure you always have enough cash for a networking dinner. Buying Old Navy dress pants allows you to buy the corporate bag of your dreams. Staying in on a Saturday night saves you a week’s worth of [entertainment expenses].” – Mackenzie, Suffolk University ‘15
While it may seem great in the short-term to spend your hard-earned money, it’s worth it to take time in college to learn how to budget your funds and spend them accordingly.
Don’t know how to start budgeting? You can find a handy-dandy spreadsheet here.
4. Save Money (Seriously, Save It)
“Save as much as possible as soon as possible. Saving is relatively easy when you’re a college student in comparison to being totally on your own with a new job in a new city. If you’re lucky enough to have your parents giving you money in college, or a side job that lets you have extra cash to play around with, save it all and save it quickly. Don’t put it off. You’ll need it. Trust me.” – Olivia, University of Florida ‘15
Many experts say to save 10-15% of your paycheck, but even if you’re setting aside just $10, you’d be surprised how quickly your savings add up over time when you’re putting a little bit away every chance you get. You’ll be happy you did when you graduate and know that you’re not starting entirely from scratch as you enter the real world.
5. Build an “Extra Expenses” Fund
“When budgeting my daily and recurring expenses, I knew it was essential to leave some buffer room for unexpected expenditures (i.e. that late-night cab ride). Never hurts to save a few bucks for that surprise outing with friends.” – Brent, Trinity College ‘16
Regardless of how much you were hoping to spend, things come up, and it’s important to have a little money on the side for when things go awry so that you’re not dipping into your savings every time you need a little cash, and don’t rely on a debit card, either. Withdraw at least $100 of cash (hide it in safe places, obviously), and have it available to you in case you’re not able to use a card.
Even though it seems like you’ve got all the time in the world, learning how to manage your money well in college can make all the difference going forward.
