How to Manage Your Money in College While Living Your Best Life

I remember college. Booze, Parties, Credit Cards, random fees, accumulating student loan debts, more Parties, Parking, and running late for classes. It was fun. If I had to be honest; It was a terrible way to get myself in debt in my 20s (S* I’m still paying for it in my 30s).

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New Money College Kid

For many, college is the first experience managing money.

I’m talking about tons of cash. I was used to part-time (working for Best Buy) and netting $250-$300 paychecks in High School.

Once the Netcheck (remaining money from Financial Aid) dropped; I was looking at a payday of over $5k-10k per semester.

For people who never seen that kind of cash, it is insane. Up until then, I considered $2,000 ⇢ Balling! That’s I-Hop money (that’s bougie compared to Denny’s). Though I paid my housing, books, and etc. I blew quite a bit of money on FOOD.

On average, I spend $300-$400/month on Publix, Walmart, Chick-a-Filet, Starbucks, and all matters of Chipotlé, Subway (before #JussieSmollett) and etc. I had no money management skills and now with $90k in student loans (monthly payments of $550-$750); I can say loudly, “I HAD NO MONEY MANAGEMENT SKILLS“.

“It’s not about how much you earn, it’s all about how much you keep.”

I’m writing this for others to avoid debt down the road. You might want to read and discuss this article with your friends as soon as possible. Share this with your little sibling, cousins, or family friend; don’t just pray for their success in college. HELP THEM.

I know far too many people at Brunch carrying about $80k-$130k worth of student loan debt.

5 Quick Long-Term Money Management Tips

1. Budget and Emergencies!

Creating a BUDGET is extremely important. The key to a good budget is identifying your WANTS and your NEEDS. Mint.com is a good place to start. Tracking how much your net worth shifts w/every student loan (every semester); can help you evaluate the importance of the dollar value of your college life. Too often people are merely existing while picking up debt. This is a way for you to be intentional about the life you want to live.

Of course, creating a budget does not mean that you can’t have fun (Myth vs Reality).

Factor in Travel, Brunch, or even Brunch/Travel; however, spending $200 on clothes/hair and make-up, $75 on drinks and another $75 on gas/brunch for 25 weekends equal up to $9,000. Mild explorative fun might be costing you that trip to the Maldives, Thailand, Bali. Learn to leverage what you want to use your money on.

College student or not, starting an Emergency Fund is crucial to anyone’s long-term financial health. “Whatever can happen, will happen…” Murphy’s Law. So be prepared for the unexpected that’s around $2,000 worth of car issues, or health/dental.

Bonus: Save up to $5,000 for moving fees (on average) after college, you will thank me later. It’s the hidden expenses that end up being problematic.

2. Be Smart About Credit Cards

College is an amazing time to start building credit and a great time to easily get caught up in debt.

I was taken for the CapitalOne ride so beware of any interest rate over 20%.

Do your research to determine the card that is right for you, though benefits like points and cash back rewards are attractive to many.

Bonus: Post-college is a great time to get your credit card. With moving costs of upward to $5,000; you could grab a card with low rates and rewards like Global Entry, TSA pre-check, priority lounges, and 50k-100k pts that Chase had and that’s an easy Brazil Trip.

3. Know Your Student Loan Options

Most people don’t know the great impact student loans can have on your finances. In fact, 90% of Americans don’t know how long it takes to pay off student loans.

Long after you graduate college student loans can affect things like your credit score. Estimate the amount of student loan debt you will owe upon graduation and come up with a payment plan on how you will pay it back ahead of time so you can avoid any bad credit. “I wish I paid attention to this because the surprise $750/month tab that was waiting for me, made me cry on the inside.

4. Apply for Scholarships

Student scholarships are an amazing way to take some of the load off your college tuition. When applying for colleges, check out what scholarships are available and whether or not you qualify. Use a resource like Scholarships.com to search. Additionally, get involved in college organizations from Fraternities to Sororities; everyone is tossing out scholarships and don’t be too big to grab $250, $500, and $1,000. They all add up.

Bonus: Specific industry organizations like the National Association of Black Accountants, Delta Sigma Pi Business, Law Review typically boasts lowkey less competitive scholarships.

Leave no stone unturnt’d.

5. Find Cheap Housing

Housing is the biggest cost for any college student. Housing tastes are an even bigger cost. Curb your enthusiasm for open floor plans and other unique features and Roommate up! I seriously don’t need to spend too much time on this. But if you want that bonus tip: get the parents to buy a home near campus and collect the rent from you and your friends. #legacymoney. It’s possible or just a back pocket idea for when you have kids.

**Nope, not this one.** You can’t afford how nice this is. lol

This is more like it.

Just enough room to keep you humble and sociable? Serious just go to the library, it is likely to open 24hr and you can people-watch at times.

It’s ok. You can still watch HGTV for your dreams.

6. Work While in College

Universities often offer tons of job options for students. Even better, set yourself up for internships or summer teaching opportunities (overseas!!!). Experience land you a job without it, here’s hoping your grades are amazing and your personality is on point. I’d recommend that you define the trajectory of your life and get your global experience (while you get your work experience). Get creative and get going.

5 Short-term Money Management Strategies

From cooking at home to avoid the $13 Chipotle meal or whatever your preferred delivery might be, there are several money management strategies you can implement now to help you.

1. Meal Plans, Meal Prep, and Starbucks!

$10 coffee habit or better yet a $75/month Starbucks kick can run you Meal about $40,000 over 20 years. Meal plan and meal preps matter.

Get the on-campus meal plan for starters, it is better than blowing money on any fast food joint.

Get in the habit of cooking at home. You can learn cool tips and tricks for future entertaining of bougie guests. Meals are a great way to reconnect with family as well as a better way to maintain your weight.

Or you can wing it at $28/day on fast junk for about 5.5 days a week for an annual total of about $7,000-$7,500 a year.

2. Purchase or Rent Used School Books

The average college student spends more than $1,200 a year on books and materials for their classes. No matter what your financial situation is during college, textbooks are a significant expense for everyone. Renting or purchasing used textbooks is an easy way to save money and beat the system in college. Your campus bookstore will sometimes offer used books at a discount, however, sometimes these can be exceptionally pricey.

If you choose to rent, renting college textbooks is a very easy process. According to Chegg, you can save up to 90% by renting a book rather than buying it.

3. Avoid Unnecessary Fees

There are loads of unnecessary fees in college. Banks and large companies tend to target college students. It is important to be aware of your financial vulnerability and take action when you see an unwarranted cost.

Learn how to avoid banks’ fees for things like transferring funds, making ATM withdrawals, and paying bills online. Over the course of 4 years, I spend over $5k in credit card interests and other fees. Enough to cancel any overseas Travel. ☹

Some additional unnecessary costs include any automated payments you have such as Netflix or Apple music. Subscriptions like these can add up quickly. The little videogame dollars creep up.

Take note of all the parking fees, Uber, and Lyft as well. You are literally going broke in small increments.

Volunteer! Trust me, you meet other people. Going out every weekend can add up.

Start planning social activities that don’t revolve around money. Take advantage of school amenities like the pool, basketball court, or bowling alley and plan events around that. Everyone is tight on money in college, and your friends are going to love saving a few bucks just as much as you on the weekends.

Easy Activities: CrossFit, Hikes, Biking, Dancing, or learning to dance, Reading, Writing, or doing Side Hustles or better yet, Studying on time.

5. Use Public Transportation

Biking is the new cool so try to avoid the car as much as possible. And the dreaded city bus is still running. However, if you must buy a car at some point in time, here are a few tips. 1. Do Your Research. 2. Look into Pre-financing Options. 3. Shop Around. 4. Negotiate Terms. 5. Look at Both New and Used Cars. 6. Buy Based on Purchase Price, Not on Monthly Payments. 7. Utilize the Internet. 8. Don’t Mention Your Trade-In until the end.