As most students realize, the time spent in university is very taxing, not only intellectually, but also financially.
Between tuition, books, and cost of living, many students are forced to take out expensive student loans or work long hours to support themselves. That being said, a lot of the financial advice students are used to hearing is just common sense: don’t buy Starbucks twice a day, don’t use Uber too often, and other tidbits.
However, there are some ways to save money that many people don’t know about, and most of them have to do with how well you can manage your bank account. If you really want to save some money, consider the following:
Your bank is almost certainly charging you unnecessary fees just for holding onto your money. Unless you have a hefty amount in your account or have specifically requested the free student plan, you may be charged up to $15 a month for the banking service that most financial institutions give for free until graduation.
Also, depending on your bank plan, you may be charged a generous fee for using your account too many times in one month. Typically, limits are set at 12-30 transactions a month, and going over can cost you up to $3 a transaction! Take it from me, tellers can waive or refund fees for you, but you need to come into a bank and ask.
Most students have credit cards or are aware of the option to get one. After all, banks push credit cards onto students with great zeal, and they don’t do it out of the kindness of their hearts. Banks base their lending model on you not paying back debt and collecting interest. If you can afford to, make sure that you pay off every cent on your credit card, every time.
If you do this, credit cards are “free money,” if you consider that you may get up to three per cent cash-back on every purchase on some cards. Also, it will help build your credit so that you can take out larger and cheaper loans in the future.
Even if you don’t have a credit card, you very likely have bills to pay. Your phone bill, rent, water bill, energy bill, and others may seem “open and shut,” but they’re not. You already know that you can limit how much of a service you use to decrease the bill, but you should also realize that companies and people make mistakes.
You can be billed for the wrong phone plan, a leaky pipe may cause your water bill to explode, or a clumsy cashier may ring up your $5.50 purchase as $55 by accident. Be careful to track how much you are charged to ensure that you’re not paying more than your fair share.
This is especially common with Internet providers, who often put higher rates and unexpected charges in their small print.
What about debit cards? Money is drawn directly from your account. You control how much is spent and there is no possibility of extra charges unless you go into overdraft. But be careful: an MIT study has shown that cardholders spend a lot more than those who carry cash.
This is largely because tapping or swiping a card doesn’t give any indication as to how much money is being spent. Cash needs to be taken out, counted, and handed over. Personally, I exclusively deal with cash. If you need to squeeze your budget down, I suggest you do the same.
If there’s one major takeaway I hope to send across, it’s this: don’t trust the bank to keep your best interests in mind, and keep a close eye on where your money is going. If you’re being overcharged on a bill, slapped with a bank fee, or sent a charge for credit card interest, this is all money that belongs to you and should stay in your wallet.
Of course, remember all the traditional advice as well (don’t eat too much avocado toast, millennials), but also make sure to keep an eye open for your cards, bills, and accounts.
File photo.
