How to Save Money in College

In this money saving lesson we are focusing on how to save money in college. The following modules can be implemented by those considering going to college or already attending.

Please know, this lesson is part of a larger course on how to save money on everything (click here to read the introduction). Check out the other lessons for more ways you can save money here.

Table of Contents

1. Take a Full Class Load Every Semester
2. Fill Out the FAFSA Every Year
3. Apply for Scholarships
4. Attend Community College for 2 Years
5. Attend an In-State School
6. Don’t Buy Textbooks New
7. Sell Textbooks
8. Use All Campus Amenities
9. Print on Campus
10. Don’t Get the Campus Meal Plan
11. Limit Eating (and Drinking) Out
12. Don’t Bring a Car to Campus
13. Use your College Student ID for Discounts
14. Get Haircuts by Beauty School Students
15. The “Duh” List

1. Take a Full Class Load Every Semester

• 🧾 Description – By taking a complete class load every semester you’ll be able to stay on track and graduate on time, or ideally, early. While class / credit hours may be a fixed cost, the additional costs to maintain a college lifestyle, in addition to the opportunity costs of not starting your career / earning money are tremendously high. Even graduating just one semester early could save thousands.
• ⏳ Effort – Moderate
• 💰 Cost – Varies based on school
• 💲 Savings – $15,500+
  • Your savings will vary depending on your college, region, living expenses, and the career you’re going into. Even if we assume your living expenses are going to be relatively similar and only look at the opportunity costs of not starting your career sooner the savings is huge. Starting a job one semester early that’s going to pay you $50,000 / year? That’s $14,423 in savings (assuming 15 week semesters). 
  • If you’re starting a job at $15 / hour and working full time that’s around $31,000 / year, which nets out to $8,942 in savings for your one semester.
  • Don’t want to start a job right out of school and plan to live at home for a year? Even that option nets a savings for your living expenses and rent that could easily be in the $5,000 range for the semester saved.

2. Fill Out the FAFSA Every Year

• 🧾 Description – Fill out the FAFSA form every year to see if you’re eligible for financial aid. You can find the form here.
• ⏳ Effort – Moderate 
• 💰 Cost – Free
• 💲 Savings – Varies based on need
  • If you or your parents are well off (by even moderate standards) you are probably not going to get much, if anything, from FAFSA. However, it’s still worth going through the process to make sure. Whether it’s a grant or loans, completing the FAFSA should be on your financial to-do list every single year you attend college.

3. Apply for Scholarships

• 🧾 Description – Apply for scholarships, especially independent scholarships. There are countless scholarships available online. Some have special requirements, but many are relatively easy to qualify and apply for. Many websites offer a scholarship. Check out Scholarships.com and StudentAid.gov to find scholarships. Also, look at your university’s scholarships page (ex. Here’s Arizona State’s page). Most universities maintain a directory of scholarships offered to students.
• ⏳ Effort – Moderate to High
• 💰 Cost – Free
  • The biggest cost is simply the time it will take you to apply for the various scholarships. Some scholarship requirements are quite time-consuming, while others will just take a few minutes. I would suggest setting aside a number of hours over a period of weeks or months to apply to various scholarships.
• 💲 Savings – $1,000+
  • Savings will vary depending on the value of the scholarship. But let’s say you apply to 50 different scholarships, but are only able to get one. That one scholarship could still easily be valued in the $1,000+ range. Yes, it takes time to apply, but the potential savings is huge.

4. Attend Community College for 2 Years

• 🧾 Description – Attend a local community college for the first 2 years of your degree program and then transfer to a large 4-year school to complete your degree. This has the benefit of graduating from a more well-known university but saving huge amounts of money by completing your general education credits at a cheaper community college. In addition, attending a community college also means you’re more likely to be able to live at home during those 2 years, saving you more.
• ⏳ Effort – Low
• 💰 Cost – Varies based on the per hour costs of your local community college
• 💲 Savings – $11,400 over the 2 year period
  • According to StudentLoanHero.com, the average per credit hour cost for a community college is $135. The average per credit hour for a 4-year public university is $325. Two years as a full-time community college student should be around 60 credit hours, at a cost of $8,100. If you were to take all of those classes at a 4-year public university the cost would be $19,500. That leads to a savings of $11,400 over the 2 year period.
  • Make sure the credits will transfer to the 4-year school you plan on attending, both for the university in general and for the degree you want to pursue there.

5. Attend an In-State School

• 🧾 Description – Attend an in-state school as opposed to an out-of-state school. Out-of-state tuition prices are significantly more expensive compared to in-state.
• ⏳ Effort – Low
• 💰 Cost – Free
• 💲 Savings – $15,280 / year
  • According to the College Board, the average cost of in-state tuition at a public institution is $9,650 per year. The average cost of out-of-state tuition at a public institution is $24,930 per year. That will yield a savings of $15,280 / year if you attend an in-state school vs. an out-of-state school.
  • In a similar vein, avoid private and for-profit universities. Private universities average $33,480 / year and private for-profit universities average $16,000.
  • Public community colleges average $3,520 / year

6. Don’t Buy Textbooks New

• 🧾 Description – Avoid buying new textbooks if at all possible. Instead, rent, buy used, share with friends, or use at the campus library. Also, look for international editions of your book, many times it’s substantially similar while being notably less expensive.
• ⏳ Effort – Low to Moderate
• 💰 Cost – Varies depending on the book and if you’re renting, buying, sharing, borrowing, etc.
• 💲 Savings – $375.20 / year
  • According to the College Board textbooks and supplies for students cost between $1,240-$1,440 / year. Much of those costs are wrapped up in expensive hardcover textbooks.
  • Sometimes, just no matter what you try, you cannot avoid buying the book. But in the cases where you can you should rent, borrow, share with friends, use copies at the campus library, or buy an international / digital edition.
  • Amazon Textbooks is one of the largest websites you can rent textbooks and buy on the cheap. According to Amazon, you can save up to 90% by renting, 49% off on new textbooks, 90% off on used textbooks, and 60% off when you buy a digital book. 
  • Using conservative estimates, let’s say you’re able to find 70% of your books via Amazon and on average you save 40% vs. the list prices. We’ll use the College Board’s median number of $1,340 / year. 70% of the $1,340 cost is $938 / year. And if we can save 40% off of the $938 that’s a total annual savings of $375.20. That’s a pretty conservative estimate. For many college courses and curriculums you can do even better.

7. Sell Textbooks

• 🧾 Description – If you buy textbooks make a point to sell them as quickly as possible once the class is over. If you can sell them to classmates and friends who have yet to take the class, that’s ideal. Otherwise, sites like Craigslist, Ebay, LetGo, OfferUp, Facebook Marketplace, and more are all great sources to find buyers for your books. Typically, selling directly to an individual is better than selling back to your university library or other used book buyers.
• ⏳ Effort – Low to Moderate
• 💰 Cost – Free
• 💲 Savings – $500 / year
  • Of course, your savings will vary based on your classes and how many books you have to buy. For example, if you buy $1,000 in textbooks each year and then sell them 50% off that’s $500 / year back in your pocket. By doing so you effectively cut your textbook costs in half.
  • Avoid selling to the campus bookstore or other used book buyers. You simply will not get as much money selling to them as you will selling to an individual. 

8. Use All Campus Amenities

• 🧾 Description – Included with your university tuition is typically a host of amenities from healthcare, counseling, childcare, library, recreation center, pool, and many others. Be aware of what your tuition includes and be sure to take advantage of everything you’re paying for.
• ⏳ Effort – Low to Moderate
• 💰 Cost – Free
  • Technically it’s not free, as you’re paying for it as part of your tuition. However, you’re usually unable to opt out of many of these added costs.
• 💲 Savings – Varies based on what your university offers and what you are able to take advantage of
  • Look for areas where you can save money by offsetting expenses.
  • Campus recreation center may let you cancel your gym membership.
  • Get inexpensive healthcare at your campus clinic and prevent a costly copay at your primary care physician 
  • Get therapy and counseling for free or at reduced prices
  • Take advantage of any free transportation your university offers. Many schools have buses and shuttles to various locations around and off-campus.
  • Get student discounts by using your student ID both on- and off-campus
  • Get free legal advice if you find yourself in trouble with the law or just have a legal question

9. Print on Campus

• 🧾 Description – Many colleges and universities include a certain number of pages you can print off at the library and other locations on campus. Check with your school to determine the print program. You paid for that paper and ink so you might as well use it, especially if the alternative is using your own supplies of ink and paper.
• ⏳ Effort – Low
• 💰 Cost – Free
  • Technically, the cost isn’t free. But you usually aren’t able to opt out of these types of programs. They are included as part of your tuition and other fees.
• 💲 Savings – $47.50 / year
  • A ream of paper can be $6-8 depending on paper quality (less if you buy in bulk) and ink will vary based on your printer, but we’ll use the HP 63 XL black as an example, which is around $40. An HP 63 XL prints around 480 pages and your ream of paper is 500 pages. That brings your per page ink costs to around $0.083 and your per page paper costs to $0.012 (at a cost of $6 / ream). Then your total cost is $0.095 / page. 
  • If your university provides you with 250 pages per semester and you take full advantage of all 250 pages you’ll save $23.75 / semester. Over the course of a full year that’s 500 pages you don’t have to print. If you had bought ink and paper to print yourself you would need to spend $47.50.

10. Don’t Get the Campus Meal Plan

• 🧾 Description – If you’re in the dorm, many times you are required to also get a meal plan. However, if you’re living on your own you typically have the option to choose to add a meal plan or cook for yourself. With some basic kitchen equipment and recipes online you can save big money by cooking for yourself.
• ⏳ Effort – Moderate to High
• 💰Cost – $2,520 / year
  • Costs will vary depending on what you’ve brought from home and what you have to buy. According to Forbes, it costs around $4 per meal to cook at home. A typical school semester is 105 days (15 weeks). 3 meals a day at $4 / per meal multiplied by 105 days is $1,260 per semester, which is $2,520 / year.
• 💲 Savings – $480 / year
  • According to the Washington Post, a meal plan costs around $3,000 / year. $3,000 less our estimated costs of cooking for yourself of $2,520 yields a savings of $480 / year.
  • In my view, $2,520 per year to cook for yourself is an exceedingly conservative estimate. Below are a few more ways to save even more money by cooking for yourself.
  • If you don’t eat breakfast you’ll save an extra $840 / year.
  • If you have a light breakfast ($2 per meal instead of $4) you’ll save an extra $420 / year.
  • If you eat “fancy” instant noodles twice per week ($2 per meal instead of $4) you’ll save an extra $120 / year
  • There are many ways to further reduce your food budget making the campus meal plan an even worse value.

11. Limit Eating (and Drinking) Out

• 🧾 Description – Try and reduce the number of times you go out to eat. A meal out can easily be $10. If you can cook more at home the savings will be immediately apparent.
• ⏳ Effort – Low to Moderate
• 💰 Cost – $4 per meal per person
  • Of course, you can spend more or less cooking at home, but we’ll use $4 per meal per person in this example
• 💲 Savings – $288 / year per person
  • If you eat out once per week at a cost of $10 per meal that adds up to $40 / month. If instead, you cooked those meals at home you would spend $16 / month and save yourself $24 / month. Over the course of a year that’s a savings of $288.

12. Don’t Bring a Car to Campus

• 🧾 Description – If you live on or near campus you may find it easier to simply walk or bike around campus, as opposed to driving your car. When you bring a car to campus you’ll pay for parking, gas, insurance, maintenance, and more. If you’re able to use public transit, walking, biking, and other means to get around you’ll save huge money each year.
• ⏳ Effort – Moderate
• 💰 Cost – Free
• 💲 Savings – $5,840+ / year
  • According to this site a 20 year old will pay on average $444 / month for car insurance. Fill up your car once a month with gas? That’s another $30-$50 / month. Still have a car payment? According to NerdWallet, the average monthly payment for a used car is $381. Parking will cost you too. Parking can range from $40-$2,500 / semester, according to Discover.com.
  • Let’s look at an example using conservative numbers. Let’s say you got a good deal on insurance and only pay $250 / month. And that your car gets good gas mileage so you only fill up once a month for $30. And that your car payment is only $200 / month. And you only pay $40 / semester to park. That is still an astounding $5,840 / year. And those numbers are all on the lower and more conservative estimates side.
  • If you can get around by walking, biking, Uber / Lyft, public transit, scooters, friend’s cars, or other methods that cost less than $5,840 / year then you absolutely should. 

13. Use your College Student ID for Discounts

• 🧾 Description – Use your college student ID to get savings at restaurants, movies, events, and more. It never hurts to ask if they offer discounts for students.
• ⏳ Effort – Low
• 💰 Cost – Free
• 💲 Savings – Varies by where you live and the number of places you shop that offer discountsMany businesses offer discounts to students. Typically, all you need is a student ID card. If you’re buying something online, many times all you’ll need is an .edu email address. Remember to ask if there are student discounts available, whether it’s online or offline.

14. Get Haircuts by Beauty School Students

• 🧾 Description – Go to the local beauty school to get your hair cut and styled instead of a more expensive traditional salon. Beauty schools are able to style, cut, and color your hair for less (sometimes significantly) than you would pay at a traditional salon or barbershop.
• ⏳ Effort – Low
• 💰 Cost – Varies based on service and location. Empire is one of the largest networks of beauty schools in the USA. You can find a local school near you and see what services they offer and their costs. Use their tool here.
• 💲 Savings – Varies based on service and location. According to this site the average haircut in the US costs $28. Compare that to $11 at Empire (using NYC prices).
• According to this site the average cost for hair coloring and hair highlights in the US costs $60 to $150. Compare that to $25-$50 at Empire (using NYC prices).

15. The “Duh” List

• Live with roommates
• Live close to campus
• Live at home
• Don’t be late on bills
• Limit student loan borrowing
• Don’t buy cable TV
• Don’t fail classes 
• Go to class
• Don’t buy stuff you don’t need
• Don’t take an expensive Spring break trip
• Don’t spend money on decor items
• Stop smoking (or at least do it less)
• Stop drinking (or at least do it less)

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