College life involves many late nights spent hanging out with friends while aiming for good grades. However, fun activities can pose a serious problem for your wallet, especially if you're tight on finances. Shifting your focus from the cost of your activity to the simple feeling of being with your friends will help ease the mental burden of keeping track of your finances. Consider getting a part-time job to boost your income for social outings or to save for later.
Can Peer Pressure Get to You?
On one side, peer pressure can manifest itself in the form of encouragement given by friends that can push you to try new things. The other side of the coin can be extremely detrimental, leading to intrusive thoughts and feeling left out.
Human beings are known to be social creatures and being part of a group fulfills a lot of psychological desires. However, the journey of college is a journey littered with ups and downs. Therefore, it is essential to keep your priorities in mind when you're stuck in a situation as sticky as peer pressure.
Some of your priorities could include being more aware of your finances and mental well-being, which can sometimes go hand in hand. This is especially applicable if you're stuck on a budget constraint and are debating between attending and spending on social events or saving up.
While it might be hard, being upfront with your friends about your budgetary constraints might prove to be more relieving than stressful. At the end of the day, friendships are about being honest and enjoying each other's company regardless of the situation.
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Embracing the Power of Discounts
One of the most popular discounts is the early bird one. It's so important to carry your Student ID everywhere since a large number of businesses and brands offer discounts and concessions for university students.
Clearance sales are a great way to buy daily essentials at a lower price, with more quantity.
B-O-G-O or Buy One Get One discounts are another simple way to stock up on daily utilities as well as everyday clothing items. Utilizing free services like discount applications, discount code lists, and browser extensions can ease and automate the discount-finding process. You can use resources like Honey and Groupon. Prior research beforehand is a must, though!
Loyalty programs, especially for clothing retailers, offer membership discounts and cost reductions during the time of payment for your items. Along with this, every purchase you make is counted towards generating points in your membership which can be redeemable for purchases in the future.
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The Ethical Discounter
A major move towards bumping up your savings is waiting for the right time. Major sales take place during Black Friday and Cyber Monday.
Buying items during these sales allows you to buy a larger amount of items while saving up for the future. These sales can be used to purchase your non-urgent items, such as clothes for daily wear.
However, a discount isn't a free pass for overspending. Discounts on items do not necessarily indicate that every item on your wishlist needs to be bought. Preparing a “needs” and a “wants” list, consisting of your everyday non-negotiables and items that can be purchased once in a while goes a long way in your financial planning and in building your dream financial future.
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Savings Accounts
Starting a savings account is the best way to save money throughout your college years. Typically, saving is a good way to accumulate money for the short term.
Simply put, a savings account is a type of bank account that allows you to deposit money which can then earn interest, depending upon the savings account.
Savings accounts are of different types- traditional, high-yield, and custodial accounts. Picking out the right savings account depends on a multitude of factors. Based on your saving goals, here are a few recommendations:
- Long-term saving goals like saving up for a car are better suited for a high-yield savings account.
- On the other hand, short-term saving goals work best in a traditional savings account format.
Other important characteristics of a savings account can be divided into interest, liquidity, and safety. For generating interest, the amount of interest earned on your savings account varies depending on the bank and the type of savings account you choose.
Unlike investment accounts which usually have certain limitations on withdrawals, savings accounts are characterised by having high liquidity. This means that it is relatively easier for you to withdraw your money as per your needs.
As for the safety of your money, all the money deposited in your savings account is usually insured by the government. Therefore, if your chosen bank undergoes resolution, failure, or becomes insolvent, you won't lose your money.
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To conclude, college life is a precious experience and one that can be lived and enjoyed to its fullest without hurting your wallet. Good luck with your financial journey and college!
