College Strategies

Lesson 6: Spending, Saving & Financial Aid

Tying it All Together

You need to spend wisely, not just for now but also for later. Once you graduate and start in a real job you will start taking on more and more responsibilities. Eventually you will be paying off a mortgage, have a good car and perhaps kids. You cannot afford to eat beans and macaroni with cheese for months in a row because you spend big just before Christmas. It is all about creative investment and planning. If you can get something cheaper, get it cheaper and don’t be silly by paying twice what it is worth. Just for fun; try and figure out how much money you spend on vending machines on average. Every pop counts and every bag of chips does too. To see how much you spend in one month on eating out, charge everything to your credit card! You’ll be shocked how much money you could and should have saved.

This is not meant to be harsh; but you have no right to cry about being broke if you recklessly spend! You are not a millionaire so don’t act like one. You are a student, and yes sometimes you need to eat out and sometimes you need to have fun. However you can really cut down on your spending if you want to. Just because your friends have to order in food every two days doesn’t mean you have to join in. why don’t you suggest something else? Usually other people just don’t have an imagination. Suggest for example to all bake pancakes together, or whatever else you like, it can be great fun! Bring a camera and take some nice snapshots of friends covered in flower.

If you know you have a spending issue and you will spend every penny you have to your disposal, and then protect your income from yourself! Arrange with the bank that a fixed amount of cash will be taken off your checking account every month and go straight into a savings account. If you are into web banking do not put that savings account on your list, and have the bank take it off your debit card as well. That way you are less tempted to splurge with it and you will be amazed at how well you can get by with 10% less on your next paycheck.

Don’t forget to buy on sale! If chicken is one sale get that instead of beef. If one brand of chips is on sale then get it for your next party or study session! If you are really that brand picky that you are willing to dig into your pocket for it, well so be it, but then don’t complain later on how expensive it is to be a student. You have a choice, and above all and everything you choose how to spend your money. If you live in residence, split your phone line with your roommates and the costs will go down! If you have a landline and you live on campus, do you really need that cell phone? If you desperately do, and you go over your allotted minutes every month, then consider another plan! It might turn out to be cheaper. If you call long distance too much, then consider calling cards. For a few dollars you can get hours of airtime on those, quite different from just straight calling.

Do your research and look around. Keep eyes and ears open and then you will be able to see the deals and live life to the fullest and the cheapest. Is it really that much fun to go for fast-food every week like clockwork? Wouldn’t it be more fun to do something else instead? Have some ready made food available for when you are hungry, so you don’t need to get sick off chocolate bars. Spending and saving is all about creativity and discipline. Have respect for your money, have respect for your future and plan out your spending. If you plan, which does not necessarily mean budget, then you will be able to make it. Be careful not to buy junk though, just “because it’s cheap”. Sometimes you do need to put down more cash to get good quality, but then it is worth it. There is a difference between buying cheap and buying junk. If you do the latter the odds are you have to replace it in no-time and you are really spending more than you would in the first case!

Analyze your life: see what you really really need, and what you really don’t. What you need has a priority, and then also see if there are creative other options for it.

Live wisely, Save wisely, and Spend well

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