Blog Post

Saving money as a college student starts with developing a thrifty mindset and forming solid financial habits. Evidence shows that actions like creating a budget, seeking part-time work, and using student discounts drastically reduce daily expenses.

The twist? Credit Unions like First Capital FCU enter the picture by providing youth and young adult programs to assist students, including low-cost checking accounts, savings accounts, and student loans. And this is just the tip of the iceberg.

Essential Finance Tips For College Students

College life often involves managing a limited budget, but that doesn't mean you can't make the most of it. By being mindful of your spending, you can effectively stretch every dollar and create a solid financial foundation for yourself. Here are some practical money-saving strategies to consider as a college student:

1.     Create a Detailed Budget

Having a comprehensive budget is the cornerstone of good financial management. It provides you with a clear overview of your income and expenses while helping you prioritize your spending. Calculate your monthly income from all sources; this could include allowances, part-time jobs, or scholarships.

Once you have a clear picture of your income, list all your fixed and variable expenses. Fixed expenses like tuition fees, rent, or insurance remain constant every month, while variable expenses like groceries, entertainment, and transportation costs might fluctuate. Be diligent about tracking these expenses and identify areas where you might cut back.

First Capital has financial calculators for savings goals, helping you create a strong fund while also budgeting for your day-to-day expenses.

2.     Seek Out Part-Time Employment

Working part-time not only brings in extra cash but also provides valuable work experience. Look for on-campus opportunities or jobs near your college that offer flexibility around your class schedule. While juggling work and studies can be challenging, it can teach you time management skills and allow you to earn money without straying too far from school.

3.     Utilize Student Discounts

Take advantage of the fact that you're a student! Many businesses and service providers offer discounts to students – whether it's for clothing, entertainment, food, or even software subscriptions. Always carry your student ID everywhere, as it could be the ticket to substantial savings. When grocery shopping or dining out, don't hesitate to ask if there are any student discounts available.

Remember: Harnessing these discounts might seem small at first but can accumulate significant savings over time!

4.     Understand Special Financial Products and Services

In today's fast-paced world, managing finances effectively can be quite a challenge. Special financial products and services are designed to help individuals and families achieve their financial goals more efficiently. At First Capital FCU, we offer a range of tailored solutions that prioritize your unique needs and aspirations. In this blog, we'll explore these products and how they can make a difference in your financial journey.

Club Savings

Saving money can be challenging, especially when faced with various expenses. Opt for an account that prioritizes your goals, ensuring you have the funds available precisely when needed—whether it's for holiday shopping, travel plans, or educational expenses. First Capital FCU provides three distinct types of Club Savings accounts, each designed to cater to specific needs:

• College Club: Save for you or your child's college expenses.
• Vacation Club: Set aside funds for your next getaway.
• Christmas Club: Prepare for holiday shopping and festivities.

By using Club Savings accounts, you can systematically save for significant expenses without disrupting your regular budget. Start planning for those big moments today with First Capital FCU's specialized savings options.

Private Student Loans

Navigating the costs of higher education can be overwhelming, but First Capital FCU is here to help. Through a partnership with other credit unions nationwide, we offer the Credit Union Student Choice Loan Program. This program aims to bridge the financial gap left by federal aid, providing a more affordable way to fund your education with competitive interest rates and zero origination fees. Credit unions, as not-for-profit entities, leverage their ability to collaborate and pool resources, enabling them to offer substantial cost savings compared to other lenders.

First Capital’s student loan offers:

• No origination fees
• Lower interest rates
• An undergraduate degree line of credit up to $50,000
• A graduate degree line of credit up to $75,000
• A one-time application process
• Deferment of principal and interest during school
• Flexible repayment options, including a two-year graduated repayment plan
• Loan servicing retained for the loan's entire duration — it’s never sold

Learn everything about our private student loans here

Mapping Your Budget: Tracking Essential and Non-Essential Costs

When living on a college student's budget, every dollar matters. Mapping your monthly income and expenses can help provide a clear picture of where your money is going, allowing you to make informed decisions about your spending.

5.     Calculating Monthly Income and Expenses

It's crucial to log all sources of income as well as monthly expenditures, including costs such as tuition, rent, utilities, groceries, transportation, and entertainment. By meticulously tracking your expenditures and noting down all sources of income, you gain a comprehensive insight into the inflow and outflow of your funds. This process will provide a better understanding of how much you're earning versus how much you're spending and track if there are any areas where you can cut costs.

6.     Distinguishing Essential and Non-Essential Expenses

Categorize your expenses into essential (e.g., rent, groceries, textbooks) and non-essential (e.g., entertainment, dining out). This simple categorization aids in helping you allocate your funds appropriately so that priority expenses are covered first. It's important to recognize that while non-essential expenses contribute to an enjoyable lifestyle, they should take a back seat to those essential costs that keep you fed, sheltered, and able to study effectively.

Striving for financial stability doesn't mean cutting out all non-essential expenses entirely; instead, it involves prioritizing the most critical costs before indulging in less crucial items. Prioritization is key to maintaining a balanced approach to budgeting – it ensures that what truly matters is taken care of without neglecting the occasional treat or leisurely activity. By recognizing the differing categories of expenses and adjusting your budget accordingly each month, you gain control over your finances, achieving a greater sense of security and peace of mind.

Utilizing Campus Resources to Curb Expenses

College campuses often abound with resources that can help students save money and lead more comfortable lives. From academic tools to wellness facilities, and various student services, there are plenty of opportunities to ease financial burdens.

7.     Academic Resources

One of the most significant expenses for college students is textbooks. These days, books can cost an astronomical amount, often causing stress for students on a budget. However, many campuses offer library services that allow students to borrow textbooks as part of their educational waiver or at a minimal fee. In some cases, older editions of textbooks are available to rent as well.

Campus libraries also offer access to research materials, free printing services, and study spaces. All these resources are vital in aiding the educational journey of students without compromising their limited budgets.

8.     Fitness Facilities

Health and wellness are important aspects of life that should not be overlooked just because of financial constraints. Many college campuses provide fitness centers, classes, and sports facilities that are accessible at little to no cost to students through general student activity fees or with a nominal membership fee. Physical activities contribute to better mental health and overall well-being, reducing future healthcare costs. Additionally, these outlets provide inexpensive healthy lifestyle options, promoting better life choices among students.

Several campuses also host events such as health fairs and workshops that focus on preventive health measures like nutrition information and general wellness tips. These events aim to reduce or eliminate healthcare costs in the future by educating students about maintaining a healthy lifestyle.

Taking advantage of campus resources goes beyond saving money; it also offers holistic benefits by catering to various aspects of student life including education, physical and mental health, and social experiences.

Prioritization in Spending: Setting Aside Money for Tuition and Necessities

One of the biggest challenges college students face is managing their finances, especially when it comes to essential expenses like tuition, rent, groceries, and course materials. These costs can add up quickly and if not managed properly, they can cause significant stress and financial hardship. Here's how you can prioritize your spending on these necessities while still enjoying some discretionary spending.

9.     Setting Clear Budget Priorities:

When creating your budget, start by identifying your fixed or necessary expenses that you absolutely must cover each month: things like tuition fees, housing costs, food, transportation, and books. These are non-negotiable expenses.

• Establish a clear understanding of what these necessary expenses are and include them as the first items in your budget to ensure that funds are allocated to these critical areas before any other aspect of your personal finances.

10.  Allocating Funding for Tuition First:

Tuition is often one of the biggest expenses a college student incurs. It's crucial to allocate funds specifically for tuition fees immediately after receiving any available financial aid or scholarships. This ensures that the money set aside is indeed used for its intended purpose.

• It's recommended that students allocate enough to cover their minimum tuition payments.

Keep in mind that late or missed tuition payments could lead to additional fees and consequences, which might further strain an already tight budget.

11.  Allocating Funds For Living Expenses

Then come the living expenses – rent, groceries, bills. If you live off-campus, ensuring you have safe and comfortable accommodation should be a top priority.

• Creating separate envelopes or digital categories specifically for these essentials while managing your budget can help ensure those funds are never accidentally spent on something else.
• Always include meal planning as part of your fundamental routine to eliminate unnecessary expenses and identify affordable yet nutritious meals that can be used repeatedly.

12.  Life Hacks to Economize: Opening Suitable Savings Accounts

College is a great time to start building a strong financial future. One way to do this is by opening the right kind of personal savings account. The most important thing to look for is an account that helps you grow your money but doesn't charge you lots of fees because let's be honest, every little bit counts! High-yield savings accounts are particularly worth considering because they offer higher interest rates than traditional savings accounts.

The extra percentage points can seem small now, but over time they can make a big difference in how much your money grows. Plus, these accounts often have low minimum balances and no monthly fees, making them perfect for students on tight budgets.

When choosing a savings account that's right for you, consider your needs. Some accounts might require you to maintain a certain balance. Look at what you have and what options are affordable for you. Then think about how accessible your money is. Sure, it's good to save, but what if you need it in an emergency? Finding that balance between high yield and accessibility is key.

Some student-friendly savings accounts may even offer incentives for reaching specific savings milestones, which can really boost your savings efforts on big terms.

It's also worth mentioning that opening an account at a credit union can be really beneficial. Credit unions often offer attractive interest rates and have a focus on community presence and member support. It's also common for credit unions to have lower fees compared to traditional banks. In case you hadn't considered it yet, the First Capital Federal Credit Union has some amazing options, especially tailored for students.

13. Shopping Smart: Finding Discounts and Deals for Students

As a college student, making ends meet can be a bit of a financial juggling act. Getting more value for your money is vital, and one of the smartest ways to do this is by taking advantage of student discounts. Whether it's software, clothing, or even travel, many companies offer special deals just for students. Entertainment venues also often have reduced prices for those who are still hitting the books.

Now, you might be wondering, where do I even start? Let's explore crucial areas where student discounts can significantly reduce your expenses and help you stretch your budget without feeling like you're missing out on anything.

Technology & Software

When it comes to software and tech needs, being a student can pay off literally. Many companies provide discounted or even free versions of their software to students. For example, Adobe offers steep discounts on its Creative Cloud suite. Microsoft also gives students access to some of their popular applications at a fraction of the regular price through their Education Store.

Clothing & Lifestyle

Looking good doesn't have to break the bank when you're a student. Many clothing retailers offer exclusive discounts for students. Whether you're looking for new outfits or items for your dorm room, there are ample opportunities to save money.

Here's an insider tip: Registering with the retail shops you frequent most often will ensure you're first in line when it comes to knowing about upcoming sales and seasonal deals.

Travel & Transportation

Traveling as a student—especially during breaks—is something we all dream about. Thankfully, many airlines and rail companies offer student discounts on tickets.

Usually these will require the purchase of an International Student Identity Card (ISIC), yet actually making the card worthwhile is an easy task due to its wide variety of partnered businesses providing thousands of daily-use discounts across over 130 countries.

Entertainment

Lastly, let's talk about entertainment—isn't college supposed to be fun too? Well, movie theaters, amusement parks, and many other entertainment venues know how expensive college life can be and offer discounted rates to students.

Keep in mind: Your college ID card is more valuable than just getting you into that lecture hall! Many theaters and venues will accept it as proof of eligibility.

By learning how to make use of these varied discounts and deals available exclusively to students, you'll be able to enjoy everything that college life has to offer without blowing your budget. With targeted financial products designed especially for students, like those offered by FirstCapital Federal Credit Union, you'll find yourself well-equipped to take full advantage of all these benefits. After all, being budget-conscious doesn't have to mean missing out.

Contact us to keep learning about everything we have to offer!