Thursday Trim the Trash Time: September 7, 2017
10 Things Students Need to Drop from Their Budgets
Being a student isn’t easy. Everywhere you turn you have people trying to rip the money from your pockets. As I spoke about yesterday in my post, post-secondary education has turned into a money grab, pure and simple. The main problem is that most jobs require a university degree or college diploma to even get an interview. So you have to have a diploma to succeed in life and to get this piece of paper you have to spend way too much. What do you do? I have said it before; you have to be vigilant when the deck is stacked against you. Knowing all the obstacles is key, planning ahead is as well. This week at Budget Boss was meant to help the student see what they are up against. We live in an age where all the information we need is literally at our fingertips. We have no more excuses and no more reasons to fail. It is important for the next generation to learn from my generation’s debt dilemmas. In this post, I am going to show you 10 things you should never waste money on when you are in school.
1) Textbooks
New textbooks are an absolute scam. Professors change around a couple words and call it a new edition thus making you have to buy a new textbook. It really is a crooked racket. Always look for used textbooks. Share a textbook with a classmate if possible. Find versions online for cheaper prices. Hell, even return a book after taking pictures of each page if you have to. I have no sympathy for their textbook scam and neither should you. Some students have to spend around $1,000 a year on books. That to me is a disgrace. Don’t fall for it.
Washington Post article on the textbook racket:
https://www.washingtonpost.com/news/monkey-cage/wp/2015/10/21/college-textbooks-are-a-racket/?utm_term=.f3a97efcfcd5
2) Cars
I got rid of my car during my freshman year as it became far too expensive for me to keep it. Throughout university, I didn’t have a car and I didn’t miss out on anything. Many schools offer bus passes with your tuition. Get a bike, walk, jog, rollerblade or do whatever you have to do. Spending upwards of $500 a month on transportation makes no sense if you are a struggling student. Share a car with a roommate if you must have one. Even better, become an Uber driver, problem solved.
3) School Supplies
I bought 100-page notebooks that cost 50 cents throughout my university career. I had plenty of pens and pencils courtesy of university groups and careless classmates. Each year my total school supply costs were about 10 bucks. Wasting money on fancy notebooks and organizers is idiotic. Back in the day, they had pencils and paper and they somehow managed to get by. You don’t need 5-Stars new $30 binder Supreme to take notes in lecture. Pens, pencil, paper, and highlighters are all you will ever need.
4) Food
There is no reason to be blowing tonnes of money every month on food if you are a student. There are plenty of student discounts at grocery stores and shops that you can utilize. Wasting money at restaurants and on take-out is extremely damaging to any budget, let alone a student’s. When I was in university I ever went as far as joining campus groups to get the free lunches. Unless you are on the football team you have to watch how much you eat. You don’t want food at college to break the bank, or the scale either.
5) Private Loans and Interest
Government student loans can really add up for those utilizing them. Even more damaging are personal loans and line of credit. Don’t be fooled by their “interest-only” payment plans. Even spending only $50 a month on interest only payments can zap your monthly cash flow. Oh yeah and don’t forget, you still have to pay that money back when you are done. It is crucial that students limit the amount of personal debt they take on when they are in school. During school, it will make you even more broke and afterward, you will be crippled by the cost of high debt. Be strategic with your borrowing. Think like a businessman, not an impulsive child.
6) Printing Fee’s
Many schools have printers available in the library that allows you to print, at a cost. Even something as small as 10 cents a page can really add up. You can buy a printer for $40 bucks and enough ink and paper for the whole year for $60 more. Even better you can share the costs with your roommates. Don’t fall for the schools printing racket. Much like their textbook racket, it’s not meant to help you at all.
7) Late Fee’s
Speaking of the library, do not waste money on late fees. I had a charge that was outrageous when I was in university. They had the nerve to charge me $83 for a book that was 2 weeks overdue. I had no one to blame but myself. Like the printing and textbook costs, late fees are another way for the school to make killer money off you. They even won’t release your transcript if you don’t pay them in some cases. You have to be diligent and not pay late fees. That goes for parking tickets on campus as well. They are rich enough; they don’t need any more of your money.
8) Socializing and Frats
I was always in awe when people told me they paid fee’s to join a frat. The houses were disgusting and the parties were lame. An easy way to meet people is just by going to class. Why on earth would anyone pay for friends and to party? Watch the movie “Neighbors” and you will see what I mean. Besides, you can always go to the parties without being in the organization. You don’t have to live at the party. Your grades will suffer, believe me.
Fraternities on the verge of collapse?:
https://www.theguardian.com/commentisfree/2015/mar/10/shut-down-college-fraternities-university-oklahoma-racist
9) Costly Spring Break Trips
I spent my spring breaks picking up extra shifts at work. Sadly I didn’t get a chance to partake in any Cancun spring break adventures. One thing that always puzzled me was this need to get away from student life as if it was some grueling 60 hour a week, manual labor job. Student life is essentially a vacation from reality. You sleep in till noon; eat copious amounts of pizza and party like a rock star. Do you really need a week to get away from that terrible life? Get real! Save that money spent for something worthwhile like rent or tuition.
10) Speaking of Tuition
It is a fact that tuition costs are consistently rising and there is no end in sight. This makes it extra important to choose a major that you will actually gain employment from once school is done. Basket Weaving is no longer a viable option so don’t let the university steal your money for a worthless degree. Also, while you are enrolled in school you must attend your classes. Every class has a cost built into it. If you don’t attend class you are wasting your money and costing your grades while you’re at it. Don’t be a fool, go to school.
School is a costly endeavor. You have to be vigilant when it comes to reducing your expenses while at college. It can really add up and it is not uncommon for people leaving school to have 30-50K in student debt. With the proper steps, you can run a bare-bones budget that will make the transition into work life much, much easier. All it takes is some dedication and some discipline and you will be on your way. I wish our local universities offered a course in not getting ripped off, that would definitely be worth the fee.
Thanks for reading my post today and don’t forget to tune in tomorrow for our final reflection on Student Week here at Budget Boss. Also, we will be recapping the week live on Facebook around noon so you won’t want to miss that. Have a great day friends!
“Too many people think that economics is this subject that should wait until the university level. But it can’t wait that long.” – Robert Duvall
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at www.budgetboss.ca.