Cutting Costs

• Recognize the difference between your needs and your wants. A need is something that you must have. For example, tuition and textbooks are considered needs. On the other hand, your wants are goods, services, or experiences that you wish to purchase but could reasonably live without. For example, concert tickets and mochas are wants. Your budget should always provide for your needs first.
• Share expenses. Having a roommate (or several) can be one of the easiest ways to cut costs on a regular basis. In exchange for giving up a little bit of privacy, you’ll save hundreds of dollars on rent, utilities, and food. Make sure, however, that you work out a plan for sharing expenses equally and that everyone accepts his or her responsibilities. For instance, remember that if only your name is on the cable account, you (and only you) are legally responsible for that bill. You’ll need to collect money from your roommates so that you can pay the bill in full and on time.
• Consider the pros and cons of living on campus. Depending on your school’s location, off-campus housing might be less expensive than paying for a room and a meal plan on campus. Be aware, however, that although you might save some cash, you will give up a great deal of convenience by moving out of your campus residence. You almost certainly won’t be able to roll out of bed 10 minutes before class, and you will have to prepare your own meals. At the same time, living on campus makes it easier to make friends and develop a sense of connection to your college or university. Before you make the decision about where to live, weigh the advantages and disadvantages of each option.
  
• Use low-cost transportation. If you live close to campus, consider whether or not you need to keep a car on campus. Take advantage of lower-cost options such as public transportation or biking to class to save money on gasoline and parking. If you live farther away, check to see whether your institution hosts a ride-sharing program for commuter students or join a carpool with someone in your area.
• Seek out discount entertainment options. Take advantage of discounted or free programming through your college. Most institutions use a portion of their student fees to provide affordable entertainment options such as discounted or free tickets to concerts, movie theaters, sporting events, or other special events.
• Embrace secondhand goods. Use online resources such as Craigslist and thrift stores such as Goodwill to expand your wardrobe, purchase extras such as games and sports equipment, or furnish and decorate your room or apartment. You’ll save money, and you won’t mind as much when someone spills a drink on your “new” couch.
• Avoid unnecessary fees. Making late payments on credit cards and other bills can lead to expensive fees and can lower your credit score (which in turn will raise your interest rates). You might want to set up online, automatic payments to avoid making this costly mistake.