How can you save money at the end of the semester?

A reader writes:

"I'm on financial aid and scholarship at my school, but that still means I spend thousands on textbooks, housing, and food. Could you do a post on how to save money at the end of the semester?" 

I got this question before my eye surgeries toward the end of last spring semester. I'm answering it now because the time frame does not actually change my answer....

Based on your question, I suspect that you were looking for some ways to make "easy money" at the end of the semester. Unfortunately, money certainly doesn't work that way for low income college students. Honestly, saving money at the end of the semester starts with saving money at the beginning of the semester!

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The two most important things you can do to help yourself financially toward the end of a semester is to stick to a budget all semester long and pay yourself first as soon as your get a paycheck, scholarship or loan disbursement, or financial aid refund by putting some money into savings. These two things will help you avoid being cash poor at the end of the semester.

To help you save along the way, you can always save on your entertainment costs, save on buying gifts, and make sure you look for deals when getting textbooks. You can also make money by selling your textbooks at the end of the semester. Some students even go as far as to sell their furniture, clothes, electronics, and other stuff when money is tight.

Really, though, there are no tips to make easy money at the end of the semester. Like I said, planning ahead at the start of each semester will help you survive financially toward the end of the semester.

Got questions? Please feel free to ask The Advisor about it.

Saving money on college textbooks

This is a guest post by Amit Sehgal, a first generation college student who runs www.bookase.com, a free price comparison website for college textbooks. 

As a first generation or low income college student, you need to control your costs–especially costs for college textbooks. That means making sure that you squeeze the most out of every cent that passes through your hand.

But why especially the cost of textbooks? Because college textbooks can be one of the most expensive parts of your college budget. Not purely because of the price, but also because of some circumstances: Some lecturers release book lists at the last minute, leaving you with no time to search for bargains or used books and you end up having to buy brand new books. Most colleges also change the books they use very frequently, and in such a situation, you can’t buy used books.

No matter what the situation, these tips can help you save the money you spend on college textbooks:

Start on campus. Make a list of the college textbooks you need and put it up on a campus noticeboard. If you are lucky, students who have already finished the course will sell the college textbooks you need for less than the price of originals.

Go to online bookstores. The most famous way to buy college textbooks for cheap nowadays is by using the internet. If you join this wave you will soon realize how unbelievably beneficial this is. In my time, this was a pretty new thing and students mostly just collaborated through email to trade, sell, and buy college textbooks. But now we also have online book vendors with very good bargains and diverse stocks including most college textbooks one might need. I managed to find 90% of the books I needed online.

There are many websites on the internet where you can buy books from. They offer very diverse options. Some websites sell old as well as new books. From some places you can find all the versions of a particular textbook. Find a site that describes the condition of the book in detail as this could prevent many problems. Some sites may offer you an option to get your book replaced if you discover that the book you got isn’t in the mentioned condition.

Get that number. An ‘ISBN number’ can be found on the rear cover of books near the barcode. This number is unique to the book and can be used to search specifically for that particular book on the internet. Many websites sell college textbooks for prices that are extraordinarily competitive when compared to the prices in local bookstores. The ISBN number will help you find the best deal for the right book.

Bid on it. College textbooks can even be found on most ordinary auction sites like eBay and Amazon. This is especially useful if the book you are looking for is hard to find; it could be one that’s no longer printed or maybe it’s one that’s autographed by someone special. You may be able to find books you normally wouldn’t find in other places. To be on the safe side, you should read all the information that’s posted about the product and be thoughtful before bidding or buying.

Not just money. Buying used college textbooks is advantageous not only cost-wise because some books can contain annotations and highlighted passages from the previous user. These marked up used textbooks will more likely than not be useful to you.

Get your money back. You can also sell your college textbooks online, there will be other students thinking just like you were a year back. This will be a great help to them. If the edition you have is new enough, you’ll have very little trouble selling it.

Good luck saving money on your college textbooks!

If you have questions about saving money on textbooks or www.bookase.com, you can email Amit Sehgal directly. Got other questions? Please feel free to ask The Advisor about it.

Pay yourself first

When you're a low-income college student, being responsible with your money is going to be a key to your success. The first step to that is creating a budget that works for you and that you can stick to. And putting money into a savings account should be apart of that plan.

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In fact, saving money should be the first thing you do for your budget by paying yourself first. By this, I mean as soon as you get a paycheck, scholarship or loan disbursement, or financial aid refund, put some money into savings. Literally pay yourself first, before the bills and grocery shopping.

Yes, you have bills to pay and necessities to buy, but don't neglect your savings account. A lot of students think its best to put what you have "left-over" at the end of the month away in savings, but this is not the way to go.

Realistically, how much money do you have left-over after you've paid your bills and whatnot? If you're like most people, not just students, you'll have less than you thought you would. So the best way to avoid falling into this trap is to pay yourself first.

Got questions? Please feel free to ask The Advisor about it.

How to save money for the holiday season

As I drink spiced apple cider, deck my halls, and wrap gifts, I can't help thinking 'tis the season for gift-giving (and receiving, too). This can be a fun, exciting, and stressful time for many first generation and low income college students, especially if you are feeling pressured to give awesome gifts.

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No matter what holidays you may or may not be celebrating, these tips can help you save money for the holiday season while giving those awesome gifts: 

DIY. Consider making gifts yourself on the cheap, like baking cookies, burning CDs, or writing a poem. If there is something that you are good at, use your skill to make personalized gifts.  

Plan for next year. Get a jump start on your holiday shopping for next year by hitting up the after-Christmas sales for some great deals. This is also a great option if you celebrate Kwanzaa. 

Opt out. You can always play the "poor starving college student" card and just not give any gifts. Most people will be understanding of this.

My apologies that these tips are too late for Hanukkah this year, but I'm sure these will be useful tips if you are giving anyone else gifts. You can also get more money-saving tips from our friends over at CollegesSholarships.org and their post 10 ways students can save money this Christmas.

No matter what you decide to do, make sure you stick to a budget, avoiding getting yourself into credit card debt, and have fun. Happy holiday!

Got questions? Please feel free to ask The Advisor about it.

Setting a budget

I realized that my recent post about getting out of credit card debt isn't that useful to someone who doesn't have a budget. I'll admit that when I was a student I didn't stick to a budget for most of my time in college... and that got me into trouble a couple of times with late charges, overdraft fees, and bounced checks.

In the hopes that you out there don't find yourselves in the same types of messes I did, here are some tips to setting a budget as a first generation or low income college student:

Do your research. Before you can set a budget, you have to understand your spending habits. To figure this out, save receipts for everything you buy for a week and estimate how much you spend in a month. Collect as many bank receipts and credit card statements as you can and look them over to see how much you are spending each month.

Where's it coming from? Think about all the money you have coming in like grants, jobs, gifts, financial aid, and scholarships. Also, consider how reliable your sources of income are and how often they come in. When you're making a monthly budget, but you only get financial aid once a semester, divide the total amount by the number of months in the semester.

Categorize things. Be realistic as you consider all of the types of things you spend your money on and group them into categories, like rent, utilities, car expenses, clothes, savings, groceries, donations, books, and so forth. Make sure you are specific and include a rainy day or "other" budget for the unexpected.

Document the plan. With your categories, decide how much you can spend on that item each month, using your research above as a guide and making adjustments when you are spending too much. It can be very handy to note this in a spreadsheet like the one below. As you spend money, update your spreadsheet.

Destroy the evidence. Keep good notes about your expenses, but shred any documents and receipts with your information on it. You don't want to be a victim of identity theft, now do you?

Be flexible. Leave yourself some wiggle room to adjust your budget month to month, especially if things change like you start working less hours or earn a new scholarship. Make sure you plan for special events, gifts, and holidays, as they come up.

Here are a few online resources to help with your budget setting:

• www.practicalmoneyskills.com
• www.bankrate.com (to calculate credit card payments)
• www.youngmoney.com/money_management/budgeting
• www.dacomp.com/budget1.html

Managing your money with a budget is your first step to financial peace of mind. Good luck.

Got questions? Please feel free to ask The Advisor about it.

Dealing with credit card debt

I think credit cards are the devil, but some of us don't figure this out until it is too late. Credit card offers are sexy and can easily seduce many first generation or low income college students. This can leave folks with piles of credit card debt.

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But instead of drowning in seemingly endless debt, these 6 tips can help you manage your current debt credit card debt:

Plan ahead. Before you make a purchase with a credit card, plan out how you are going to pay it back. Know how much you can afford to put towards the bill each month and factor in your interest rate. A bonus of thinking ahead is that it tends to fend off unnecessary impulse purchases so that you only borrow as much as you need.

Don't be a minimalist. If possible, pay your credit card bill in full each month. If that's out of the question, pay more than the minimum payment each month. These smart movee can save you hundreds--or even thousands--in interest.

Put it together. If possible, consider consolidating credit cards or transferring balances to a card with a lower interest rate.

Ask for it. Call your credit card company and ask them to lower your interest rate. A lot of people don't realize that it's completely fair game to ask this. You don't get what you don't ask for and the worst they can say is no.

One step at a time. You want to pay off debt as soon as possible, but always start by paying off debts with the highest interest rate first.

Pay it forward. Once you pay off one debt, apply that payment to next highest interest rate debt. And once you pay off all your credit card debt, put the money you are already used to paying toward credit cards into a savings account.

These steps are easy said than done, but can make all the difference in getting out of credit card debt. Even better, once your debt is paid off keeping up with these steps will help prevent future debt!

Got questions? Please feel free to ask The Advisor about it.

4 keys to working in college

As a first generation or low income college student, there is a good chance that you will work while you are in school. I worked two part-time jobs for most of college and full-time every summer but one. From my own experience working while in college and as an advisor, I offer the following 4 tips for being a successful student-employee:

Do your research. Take a look at your finances to see how much you actually have to work. I've had a lot of students assume that they have to work more than they need to. Trust me, there is a big difference between having to work 12 hours a week and working 30 hours a week when you don't have to. Double check with financial aid that you are using all of the free money you qualify for.

Work on campus. When looking for a job, on-campus employers tend to be more flexible than off-campus employers because they are very in tune with the demands of student life and changes in a student's schedule each semester. You also have the advantage of being on-campus, so you can better balance your work schedule with your class schedule. If you do get an off-campus job, make sure you are very clear with your supervisor about your schedule and priorities. 

Don't spread yourself too thin. If possible, try not to work any more than 20 hours per week. This 20 hour limit is considered a good balance for working students. If you have to work more than 20 hours, consider taking a reduced courseload.

Think down the road. Try to get a job related to your goals after college. For example, if you want to work in business, apply for office jobs and positions with the business department. I knew I wanted to work with college students, so I applied for jobs as a peer counselor. When your college job is related to your after-college plans, it pays your bills while being a stepping stone to your future. Score!

These 4 tips will help you maintain a balance between school life and work life, which is another key to your success as a first generation or low income college student!

Got questions? Please feel free to ask The Advisor about it.

Credit cards are the devil

As a first generation or low income college student, you are sure to see credit card companies with their sexy offers of a free t-shirt, gift certificate, paintball pass, or whatever on and around campus. But don't give in, it's a trap!

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You might think those sexy freebies make a compelling case for why you should take a few minutes out of your day and fill out an application. You might think you can get the freebie, but you'll never get a credit card. However, a lot of first generation and low income college students do not consider the long-term consequences of getting that credit card.

Credit cards let you buy now and pay later, with interest. If you are responsible and make a plan for how you are going to pay off purchases, they can be a good thing. But let's be honest, most of us are not this responsible. Most of us will buy that new $200 outfit and pay the $20 minimum payment at 18% interest. In the long-run, that $200 outfit will cost you more than $600, not counting all the other purchases charged on that same credit card or others.

Bottom line, when it comes to credit cards, proceed with extreme caution. And empower yourself with information, so check out Choosing A Credit Card: The Deal is in the Disclosures from the Federal Trade Commission before you sign on the dotted line.

Got questions? Please feel free to ask The Advisor about it.

5 ways to save money and still have a social life

I'm sure we've all heard the "poor starving college student" bit before, but it hits a little closer to home for some of us than others. For a lot of low income college students, it can be a fine line between saving your precious money for the necessities and having this social life that you want.

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But, saving money doesn't have to mean you can't have that social life. Here are 5 ways you can hold on to your cash and still have a good time with friends:

1. Meet friends for lunch, not dinner. Lunch is almost always a cheaper option than dinner. If you can suggest a place with great lunch specials.


2. Eat before you go out and order light. If you have a full stomach from stuff you already ate at home, you're less likely to splurge on food and drinks when you go out. And when you do order, stick to ordering water instead of a soda or other drink and consider getting an appetizer, side dish, salad, or dessert only as your entree.

3. Offer to be the DD. If alcohol is going to be involved in a night of going out, offer to be the designated sober driver. You'll save money by not buying drinks and your party-hearty friends will love you. Some bars will even give the DD free non-alcoholic drinks! Don't have a car? Offer to drive someone else's car for the night.

4. Fake it. Instead of ordering a $6 cocktail, order a cheaper soft drink or virgin option that still looks like it could be an alcoholic beverage. A Roy Rogers (cherry Coke) is a good option. You can also ask for a glass of water.

5. Stay in instead. A social life doesn't always mean going out. Try hosting a small get together like a potluck or movie night rather than going out.

See, saving money is not the end of fun! If you party hard, party safely--and save a few buck in the process.

Got questions? Please feel free to ask The Advisor about it.