Going off to college is a time for learning and independence. But managing your studies and finances can be challenging, especially if you’re not working. While opening a credit card can help you build credit and serve as a safety net in an emergency, you can also fall into the debt trap. Unfortunately, 42.1% of undergraduates said they had credit card debt in a 2023 survey.
Are you worried about accruing debt beyond student loans? Here are five ways to avoid credit card debt and save money:
1. Create a budget
You may not have much money in college, but starting a budget can help keep you on track so you don’t overspend. Plus, if you get into the habit early on, you’ll set yourself up for a healthier financial future.
2. Reduce textbook costs
According to the Education Data Initiative, the average student spends between $628–$1,200 a year on textbooks. To save money, consider renting or buying used textbooks. You may also be able to get them for less as ebooks. When you're done with the class, try selling them. You might not get much money for them, but some money back in your pocket is better than nothing.
3. Eat home-cooked meals
Research shows that college students without a meal plan spend more than $400 eating off-campus and more than $200 in groceries. Reducing the number of meals you eat out can help you save some dollars. Even making your coffee instead of hitting up Starbucks will be cheaper over time.
4. Take advantage of free or discounted campus resources
You can often use the campus fitness center and health care services for free or at a reduced price. Make sure to take advantage of your student status for subscriptions and educational tools because a student ID can help you get discounts.
5. Talk to a professional
The golden rule for credit cards is to spend only what you can pay off in 30 days. But realistically, most people don’t abide by this rule. If you end up in credit card debt or just want help managing your finances, talk to a certified credit counselor. They can help you create a budget, provide financial education, and support you as you navigate student loan repayment—so you can move on to the next stage of your life without a ton of debt.
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