When I was in college I practiced a very un-frugal lifestyle. Looking back on those 4 years there are several bits of wisdom I’d like to share with my friends attending university.
- Buy your books used-Nobody will judge you for buying used books. Buying new books is like buying a new car, as soon as you take it out of the the plastic the value drops significantly.
- Student loans aren’t cash- Don’t even think about using your loan money for shopping trips, computer games or a new flatscreen. Your loans may not have interest rates as high as a credit card, but you still have to pay them back and they longer you extend the payments the more you pay.
- Sell your books back-You probably won’t read them again. I thought I would and I didn’t. The longer you keep them the more their value drops.
- Don’t sign up for credit cards on the quad- Everybody else will be doing it. Sure that free Red Sox t-shirt is cool now, but in 5 years the shirt will be gone and the $10K of debt will still be with you (OK this wasn’t me, but it did happen to several of my closest friends).
- Practice sobriety- Liquor is expensive and cabs are even more expensive (especially if you live far from campus!). Get a designated driver and if you must drink, try to drink at home.
- Avoid cover charges- Unless there is a live band you really want to see, skip the clubs with cover charges.
- Don’t pledge a Frat- My school didn’t have Greek life. But many of my friends’ schools did. I can’t believe how expensive it is to pledge some the sororities. Save that many and use it to pay off your tuition bill. You’ll find plenty of friends without the Greeks.
OK college grads, jump in here. What am I missing? Did you make any money mistakes in college?
Image credit- 401(K) 2012 via flickr