Carson's Tips

Keep cash on hand at all times

It is easy to run out of cash and just use a debit or credit card, but there are times when cash is especially needed, such as getting gas when the card reader is not working, paying for cover, or just for small purchases ($5 or less).

There are also less security problems and/or fraud with cash. This will protect you from having confidential information stolen.

Create a budget with your parents for expenses

It is important to see on paper or digitally what you or your parents’ money is being spent on each month.

My background is a little different than other people. My parents cover my tuition, rent, and some necessities such as gas. Since I work and earn a good bit while in school, I pay for my groceries and things such as shopping or eating out. I base what I spend at the grocery store and how much I eat out or shop on how much I earn on a monthly basis.

During football season I have other expenses that come up such as drinks and food for tailgates, so I tend to eat out less during the week to compensate for the extra expense on the weekend. I always bring home more than I spend, and I think this is partially because I track what I spend through a spreadsheet/credit card app.

Get a credit card once you start college to establish your own credit

I worked at Publix for about 30-35 hours a week during my first two years of college while my parents still paid for everything. I began to accumulate money very fast so I got my own credit card. I started using it eating out and shopping, and I would pay it off immediately. Not only did this bump my credit score up, but the rewards cash started to build up as well.

I still use the same credit card now and spend a little more on it every month. This helps my credit score and the accumulation of cash back rewards. I use my cash back rewards to pay for my textbooks and to occasionally invest in the stock market. There is a lot of flexibility with the extra money; it can be used on anything imaginable which is a perk I enjoy.

Rent used textbooks from the campus store or get them from Amazon

Typically, Amazon offers the exact same version textbook needed for classes for a fourth of the price of the campus bookstore. You also have the option to rent these textbooks from Amazon too which can save you even more money.

Most books at the campus store are offered either new or used, and some have the option to buy or rent. There has never been a case when buying a book is necessary and especially not a new one. Therefore, you should always rent and get the used version of textbooks if available.

Make coffee at home

It is tempting to go to one of the many Starbucks locations or other coffee shops on or off campus, but spending $5 on coffee every day will become noticeable over time ($5 a day * 4 days a week = $20 a week; $20 a week * 4 weeks = $80 a month; $80 a month * 12 months = $960 a year). This is a conservative calculation using four days a week because most people I know have coffee every day, but it still adds up to be almost $1,000 a year.

The cheaper route is making it from home every day with a regular pot, Keurig, or Nespresso where it probably tastes about the same or maybe even better.

You may not notice the savings from drinking coffee at home but that extra money will be there when more important expenses come up.

Landon's Tips

I am comfortable with Excel, so if I need to budget something out I’m happy to come up with a spreadsheet. This likely will not apply to most college students, but those who are keenly interested might try it out if they haven’t already.

The personal finance app Mint is very helpful for tracking expenses. You can connect all your accounts to it to track spending. You can set budgets on it and it will alert you if you go over budget in a particular sector.

My main expense is food. Planning out what you eat each week is key. Whether it’s fast food one day and cooking in the next, try to plan all of it out and see how much it will cost.

If you do cook for yourself, try to make something that will last a few days and is good to eat as leftovers. You can really cut down on spending if you can go a few days without having to pay for food and live off groceries and leftovers.

In the same line of thinking, pay attention to where you shop. While your parents may shop exclusively at Publix, Target, and Fresh Market, your budget may be more in line with Aldi, Dollar General, and Dollar Tree. At least giving these places a look may give you a new perspective on how much more items cost just because they’re at a nicer store.

Cut out any unnecessary charges that automatically come out of your account every month. This may be a streaming service you don’t use much or a subscription you’ve long since found a better alternative for.

Take full advantage of funds that universities provide you. The University of Alabama gives students a set amount of Dining Dollars every semester, billed in their tuition, to spend at designated restaurants around Tuscaloosa and at cafeterias on campus. These are great if you’re running low on cash.

Make sure your parents know how to best get funds to you. This can be through Zelle, Venmo, direct account transfer, etc. Have a discussion with them beforehand about how best to address funds transfer.

When you are eligible, apply for a student credit card. These are great for building credit. When they ask for your monthly income, you can put down earnings you have from a job or even money you get from your parents. Spend between 7 and 10% of your limit every month and pay it off to keep from accruing interest. This will set you up to have a great credit score out of college to take out a mortgage, buy a car, etc.

Pay attention to how you pay your rent for your apartment. They may have charges associated with some methods and not for others. For example, my apartment complex charges a $14.00 service fee for paying my rent online, whereas they charge me nothing if I pay with a check. This will be different for wherever you live, but try to avoid any unnecessary fees where you can.

Always apply for scholarships provided by the university when they are available. Even if you already have a full ride or aren’t concerned with costs, that money may go directly into your bank account if you’re already paid up on all other charges. Policies will vary between universities, but it is not uncommon for students to be essentially paid to go to their university by collecting scholarships that exceed the amount of their tuition, room, and board.

Non-budgeting advice: I advise against rooming with your best friend from high school. You will learn more about them than you ever cared to when you live with them. Even if you get along with them better than anyone else, your living styles may be completely different. They may be very messy whereas you are very clean, they may throw parties all the time where you prefer a quiet living space, etc. If you do room with them, have a frank discussion beforehand about what your preferences are and see if they clash. You may be better off with someone you meet through a roommate matching service provided by your university.