How to Save for Big Purchases on a Student Budget

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As a college student, you likely have a really tight budget. This makes making a big purchase seem daunting. Whether it is going on a trip or buying an expensive item, it may seem impossible to afford whatever it is you want. However, if you budget correctly, you will be able to make the purchase you want.

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Write down your budget

You may have a mental concept of how much you make and spend each month. However, it is better if you can write it down and have a visual of what your financial situation is. Make sections for how much you bring in from all income sources and how much you spend. Gather any receipts you may have and look at what you currently have in your bank accounts. Seeing where you need to spend money and where you can cut back on nonessential spending can help you save money.

Cut back spending

Obviously, there are things you need to spend money on, such as rent, utilities, food, tuition, and books. However, there are ways to not spend as much money. If you find yourself eating out almost every day, consider shopping for groceries and cooking for yourself to save money. You need textbooks for your classes, but you do not always need to buy them new from the bookstore. Consider renting your textbooks or buying them used from places other than your campus bookstore. Avoid impulse shopping. When you go grocery shopping, stick to your list. Consider buying what you need online and picking them up in person so that you are not wandering around the store. This will reduce the temptation to buy things you do not need.

Savings account

Set up a savings account that is solely for your big purchases and other big purchases you may have in the future. Have this account be at a different bank than your normal account so that you are not tempted to transfer money out of it to spend. You can set up automatic money transfers from your primary account into this savings account or you can set up your direct deposit to have a little bit of your paycheck go into this account each pay period. This way, you are not tempted to spend the money you are setting aside and you can save up for the purchase.

Look for free events and entertainment

Going out and having fun is an important experience for college students, but this does not have to cost money each time. Look for free or reduced-cost options on and off campus. There are likely free movie showings or discounted tickets to events. If you have a library card, check out books for free instead of buying your latest read, and look into digital services for streaming movies. This can take the place of other, more expensive streaming services. Put the money you are saving into the bank account above to save for the purchase.

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Lower your bills

If you live off-campus, you likely have to pay for utilities, such as water and electricity. These bills tend to be more expensive the more electricity and water you use. While these are necessary, there are ways to reduce how much you use to help you lower your bills. Turn off lights when you are not using them. Open curtains to use as much natural light as possible. Do not leave the water running when you are brushing your teeth. Use cold water when doing laundry as it is more efficient and safer than warm water. Only do your laundry when you have a full load to do. You and your roommate may even opt to do laundry together to help reduce bills. This also goes for the dishwasher. If you have the space, consider air-drying your clothes to save electricity that would be used by a dryer. Unplug electronic devices while they are not being used. Encourage your roommates to be mindful as well as they would likely want their bills to be lower as well.

Use discounts and coupons

Using sales, discounts, and coupons when shopping can help save you a lot of money in the long run. See if your local grocery or retail stores offer student discounts or loyalty programs. Loyalty programs allow you to accumulate money back that you can apply to future purchases. These programs also tend to have sales and discounts. If the store has an app, the app may have coupons that you can link to your loyalty account to save money on things you need. Only buy things you will use, not just because it is on sale. If you are going to a museum or an experience, find out if they offer a student discount. You may have to show your valid student ID, but this can save you a few dollars.

Saving money for a big purchase may seem daunting, but if you give yourself time and manage your money well, it can be done!

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