Being a student is a lot more expensive than what most people envision it to be.

Having to study means not being able to work full-time. At the same time, studies cost us thousands of dollars a year (think textbooks, tuition, and more!) That makes it hard to manage, much less save money as a student.

The good news is there are many ways out there where students can spend less, and save more!

There are tons of amazing parties and all sorts of fun things to do in college, but after my first year in university, I lost interest in them. Without a steady stream of income, I am forced to rely on the limited funds from my parents every semester. Hence, I have to think of ways to reduce my spending while finding more opportunities to ensure that my savings are increasing.

One of the ways — rather common among my friends — would be to skip meals, which I would not recommend. Instead, I tried to cut back on entertainment expenses to save money. I would try to avoid movies and music concerts — sometimes choosing not to hang out with my friends as well. This really depends on how disciplined you are, and I feel that it also depends on the needs of every individual.

As a student, one of the most important things is to keep track of your expenses. Spend too much, and you risk accumulating too much debt after graduation. Some turn to part-time jobs while others resort to long-term plans. This article will teach you some simple money-saving tips to adopt while pursuing your education.

1. Set a budget

inserting a coin into a piggybank

One of my mottos is: Don’t shop when you’re starving, manage your debt, & cut out unnecessary spending.

One of the most important tips that I would like to share is to set a budget and to stick strictly to it. What gets measured gets managed. If you keep track of all your expenditures, you will become more mindful of your purchases, and be more likely to start saving money.

Luckily, technology has made budgeting easy. We no longer need to spend hours over the dining table filling out spreadsheets. One of the apps that I use to track my expenditure is called Monny.

Monny money tracking app

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You only need to occasionally review the numbers (I do it monthly) and add in the categories when you make any purchases, however small it is.

2. Buy second-hand goods or learn to trade and exchange with your friends

carousell app

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Buying second-hand goods is a great way to save money as a student (think Carousell!) because prices are usually much lower as compared to brand new items. You may be surprised at the treasures you find – high quality clothes, used textbooks, home appliances if you are living in a hostel – all for a lower price.

If you were to keep track of the money that you’ve spent on your textbooks, you will come to realise that you are spending hundreds of dollars each semester! Instead of buying new textbooks, get them either on Carousell or on shared forums other students post on. You can easily save 50% – 80% off the original price, and if you are lucky, many of the second-hand textbooks are hardly used. The best thing is that after you are finished with them, sell them on the same site! Occasionally, you might be able to sell them for the same price (or more, if you are a great negotiator) than when you bought them.

3. Leave food shopping to later in the day

groceries on the table

Many supermarkets and bakeries have a clearance sale in the evenings where some food is sold at a marked-down price. Bread, seafood and dairy products will be on sale, and many vegetables, fruits and other fresh produce are labelled with a reduced price. These are great bargains for students if you cook on your own. Next time you go grocery shopping, try popping into the store a few hours before it closes and check out the prices. There is a massive difference!

4. Think carefully before getting a credit card

credit cards

If you have a credit card, be disciplined. Many of us, myself included, are guilty of spending too much money on items that we already have or are completely unnecessary. Often enough, taking a credit or debit card out is the easiest way to pay for the bill without facing the reality of the price.

Many students are tempted by credit cards to buy now and pay later, but this bad habit may lead to overspending. Refrain from this method of paying unless you are disciplined enough to not go beyond your budget.

5. Remember your student perks

students in class

Many people think having fun means spending lots of money on movies, parties, theme parks or other local attractions. Yet, there are many types of free entertainment available – it just requires a little extra effort to find! Consult the internet and start from websites like timeout.com, where you can search for all kinds of things to do free of charge. General rule of thumb: It is always a good idea to ask if there’s a student discount before you pay for anything.

When buying a laptop, make sure you are paying the student price
Students can enjoy a range of discounts, even at restaurants and outlets beyond the school compound
Students can also get discounted movie tickets on weekdays before 6pm at all the big cinema chains, namely Cathay Cineplexes, Golden Village and Shaw Theatres.

6. Save, Invest, Save

stock management on computer screen

Learn to invest and start young. Younger investors have a tremendous advantage - time.

Investing a small amount of money today (on a regular basis) can lead to big returns down the road. Compound interest is advantageous when you give it enough time, and many students do not realize how much more money they will end up with if they start saving and investing now.

Below are some of the many ways you can look to explore and start out:

1. Regular share saving plans by banks (RSS)

On top of saving a percentage of your income, an RSS plan also invests that amount to help you grow your wealth. An RSS plan grows your wealth by investing in a financial instrument like an Exchange Traded Fund (ETF) that tracks — for example — the Straits Times Index (STI). This means that you are effectively investing in the top 30 companies in Singapore’s market without having to pick out individual stocks to buy.

2. Endowment Plans

Endowment plans are a common type of product that people often buy for investment purposes. They require you to continue a fixed sum throughout the lifespan of the plan. You may be required to pay every month, quarter, 6 months, or year. They run for a fixed amount of time, usually between three to twenty years.

The maturity period that is appropriate for you will depend on your goals and circumstances. When your endowment plan reaches maturity, you will be paid the returns of your investment. Many young people tend to regard endowment plans as “forced savings” plans, since they are required to make regular payments.

Remember: The earlier you start saving, the more amount of money you can save!

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