College students are not known for having much expendable income. To offset this, most college towns cater towards students’ needs by keeping the cost of living low enough to maintain a healthy lifestyle. This is the norm across the United States, but for those of us who attend a college located in the heart of a very lively and often very expensive city, there are some extra challenges preventing us from building long-term savings. In my second year at UCLA, which is located in between the neighborhoods of Bel Air and Hollywood, I’ve learned a couple of things about how to budget. This important skill won’t be taught in your college classes, so here are the main things I’ve learned that have helped me become more financially conscious as a student living in a big city.
Keep track of your money!
If you were to take one thing from this article, it would be this: keep track of your spending! It’s as easy as making an Excel spreadsheet compiling all of your Venmo charges, and if you’re using a credit/debit card, most banking services will provide you with a pre-made list of your monthly expenditures. Knowing where your money is going is the first step to creating a budget that works for you. Not only does this hold you accountable for the occasional splurge that you probably shouldn’t have made, it also allows you to see where the majority of your money is going each month.
Looking critically at your spending trends can help you make changes that can significantly impact your budget. For me, this was recognizing that over half of my purchases were made at restaurants, which led me to choosing nights in cooking homemade meals with my friends, or trying a new recipe over going out. This switch has saved me hundreds of my hard-earned dollars when the restaurants around me are more expensive than your average college town. Tracking your spending is the best thing you can do for your budget.
Switch Up your grocery shopping.
Trader Joe’s seems like the cheapest option, and it’s often the most accessible for college students living in an urban area, but you may want to consider purchasing your staple groceries elsewhere. Things like snacks, fruit, or eggs may be cheapest at Trader Joe’s, but you’re often better off buying produce, bread, or meat at your local grocery store for cheaper. This varies from city to city, so exploring the different options around your campus can give you a good idea of where to buy which items to save the most money. Groceries are one of the most consistent expenses for college students who may not have to worry about rent or utilities yet, so making small adjustments in these purchases can really add up over the years you spend as a student.
Quit paying for Ubers/parking.
Ubers are not cheap, and for most students with a car, parking can be a major expense that often makes having one just as expensive as utilizing ride-share apps. Luckily, most cities have a mode of public transportation that is significantly cheaper than your $20 Uber and doesn’t require you to find or pay for parking. Even better, most colleges provide free access to these services, saving you even more money. At UCLA, the local metro systems are totally free with a university-provided TAP card. At colleges like USC and UChicago, they even offer free LYFT rides on and around campus. I encourage you to explore your university’s resources; they may be offering free services that you didn’t know about.
College is a time meant for enjoying the newfound freedoms that come with entering adulthood. These experiences are what make life in college so enjoyable, and even though dinner with friends, or exploring the city you live in costs money, effective budgeting will help you partake in these activities in a money-friendly way. Rather, being conscience about your spending should allow you more freedom to do the things that you love without as much concern for the financial consequences. For whatever purpose is best for you, whether that be saving money for the future or saving money to spend more of it in other areas, budgeting is a great practice that every college student should adopt before entering the real world.