Over my past three years at Pitt, I have heard over 15 people describe themselves as “broke college students.” This comes as no surprise. College is expensive and so are rent, food, leisure, school supplies and so on. Also, if you are a student that pays for your own tuition, there are your student loans. With all of these expenses to pay, saving for the future is the last thing on many students’ mind. However, saving for the future is incredibly important when you’re young. You can build a base for your future, give yourself peace of mind, and begin a fund for the bigger expenses you’ll acquire later in life. Saving sounds daunting, maybe even impossible in college, but here are ways that I promise are feasible and easy.
1. The Coin Jar
Coins. You get them back from the cashier, throw them in the bottom of your purse, and forget all about them. Too often do people just casually lose their coins or immediately throw them all in to a tip jar (Disclaimer: I support tipping, just not on every occasion). While the money is less than a dollar when you receive it back, it quickly adds up. I challenge you to put every coin you get in a jar for three months, and then deposit the jar at the bank. You may have to roll them yourself (most banks provide the papers), or dump them into a coin counting machine. As someone who has used this method, you’ll be shocked to find how much your coins add up. Deposit these into your savings, and ca-ching!
2. Treat your savings like a bill
Okay, so this sounds odd but it is incredibly effective. Treat deposits to your savings account like a bill. Pick a percentage you’re comfortable with (I use 20%), and deposit that percentage of your paycheck into your savings account before you pay any other bill. Once you deduct this from your paycheck, pay the rest of your bills and use the remaining money how you please (spending, checking, etc.) This ensures that you put money in your savings from every paycheck and removes the temptation of you spending it once you pay the rest of your bills.
3. Withdraw cash before you shop
Do you overspend when you go shopping? The problem with electronic cards is that you have the entirety of your bank account available with a swipe of plastic. These electronic transactions can often create a disconnect from how much you are actually spending. When you go shopping, withdraw the maximum amount of cash from the bank that you want to spend. Leave your card at home (if you’re comfortable with this), and that way you will have to stick to the budget before stepping foot into a store. Goodbye impulse items, hello responsible shopping.
There you have it. Three ways to save money. Give these three tactics a try, and see if they work for you. Good luck!
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