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How to save money as a student

Do you have a taste for caviar but live on a dal chawal budget? You may have made to your dream college, but is it causing you extreme financial distress instead of happiness? If yes, welcome to the life of a college student, where along with nerve-racking academics, you also have to deal with financial burdens. Well, we got your back. Browse through these lifehacks on how to save money as a student:

Save in a student savings account:

Take a step to attain financial independence by investing in a student savings account. A student savings account will help you save money in an effective, step-by-step manner. Browse through learn about the best student bank accounts in the market.

KOTAK MAHINDRA BANK

Kotak Mahindra Bank recognizes that students form an important element of growth and development and thus provides Kotak 811 Student Savings Account, a savings account that will best suit the varied needs of students. Its features include:

  1. This is a zero balance account. This means that students do not need to face an additional tension of maintain a minimum balance in their bank account. Plus, no penalty will be levied for a low balance in your saving account.
  2. Avail a seamless banking service with a Kotak 811 savings account. You can open your account online and can access it anytime, anywhere.
  3. An attractive interest rate of up to 6% per annum.
  4. Go Green with a virtual Debit Card instead of a plastic-made physical debit card. You can shop and pay your bills with this virtual debit card.

DIGIBANK BY DBS

Digibank by DBS allows a student to open a digiSavings account on an online platform, wherever and whenever it is required. Its many paybacks include:

  1. As a student, you can use the ‘VISA Tap to Pay’ facility of digibank Debit Cards to make transactions and payments, conveniently.
  2. Up to 7% interest on savings.
  3. Save more by receiving a cashback of up to 10% by shopping from online merchants.

STANDARD CHARTERED BANK

Standard Chartered Bank offers the Aasan Zero Balance account which is a tech-savvy online account, thus best accessible by students. Its benefits include:

  1. Students are not required to maintain a minimum balance in the account.
  2. You will be provided with a debit card to make ATM withdrawals.
  3. No charge for a multicity chequebook.
  4. Unlimited access to any branch of Standard Chartered Bank.

FEDERAL BANK

Federal Bank provides Yuvamitra, a specialized student savings account to meet the futuristic needs of students. Its features include:

  1. Daily cash withdrawals up to Rs.50, 000.
  2. No minimum balance requirement.
  3. 20 annual cheque leaves.
  4. No charge for Net Banking, Mobile Banking facility.

Fix leakages in your budget:

Have you ever passed a shoe store and felt that you just needed to get that pair of cute shoes? Well, don’t. At least not right away. As a student, you need to realize that you live on a budget and even small luxuries can have big consequences. This does not mean that you should not treat yourself every once in a while. Our advice is that you create a budget for yourself and check your wallet before you help yourself to those cute shoes.

Tracking your spending might not be the most exciting thing to do, but it is very important to learn where and how not to spend and land yourself in trouble. We suggest that you collect all the bills and receipts handed to you during the duration of the first month of your college semester and then you can sit and go over how much and where you are spending. Another option is that you can download free money managing apps that are now made available to help you track your spending and give you a better idea on where you can cut down, like MoneyView or ETMoney.

Use your credit card wisely:

Most students generally face the same dilemma- money issues due to major investment in higher education and piling on living expenses. Moreover, new found freedom found when accessing college facilities comes with a high price. It is possible that students might make regretful decisions when away from parental supervision and guidance; like misusing your credit card that can cause serious havoc for years to come.

Many students may not understand the frugality of their credit score. Thus, you could be prone to making large purchases without awareness of long term consequences. A helpful tip here would be to not have multiple credit cards. If anything, having multiple cards will only increase your debt. Say that you are unable to pay your credit balance every month, but are steadily working towards reducing the debt. So why take on extra credit cards and work towards pay off additional credit balance as well? You should ideally focus on paying that card off, before opening any other accounts.

Take advantage of the different perks a credit card has to offer, but keep in mind to always be responsible- or you could face a massive difficulty in establishing a good credit score. Post completion of your studies, a strong credit history will help you buy your first apartment, a car and fulfill other important tasks.

Rent college supplies:

Your money problems do not end with you paying your college fees and living expenses. It continues with you having to pay for college textbooks and other college supplies. Most course textbooks are rather expensive in nature, but you can save money by borrowing books from your college library whenever required. Another option is that you can buy cheaper second- hand copies of the required textbooks. Many college textbooks are available in both hard copy and soft copy forms. You can opt for a soft copy of the textbook through your university. If not a soft copy, borrow a second- hand copy and sell it off after the term ends. This gives you an opportunity to recoup some of the costs.

Another possible solution is that you can probably xerox or print only needed information and not the entire book. Depending on how much your college charges you for printing and the amount you need to print, a viable option might be for you to invest in a printer. Thus, books are not the only course essential through which you can save up on here.

Be smart when food shopping:

Other than college expenses, food is one of the biggest costs that you will have to undertake. Since food becomes a major expense, it is definitely beneficial for you to cut down on your food shopping costs. Buying supermarket- valued products rather than branded products can help. Buying in bulk can be of help. Cooking at home instead of ordering take out will help in the long run. A take away menu might seem to be a saving grace on a long day, but your wallet will disagree.

Planning your meals in advance with a cost- effective shopping at the start of every week is advised. A pro tip: Do not go grocery shopping when you are hungry as it will entice you to buy items that you do not need.

Cut down on transport costs:

Cutting down on transport costs may seem extremely tiresome, but it is highly recommended. Use public transport whenever possible. Most universities usually offer some concessions which help you reduce costs spend on transport services. If you can cover the cost of travelling under Rs.100, why go for an Rs.450 option?  We agree that Taxi apps might be the best option for late night soirees, but it is definitely not necessary for day-to-day travelling purposes.

An SOS tip: if your college is nearby, waking up early and walking to college will cost you nothing!

On a concluding note, along with trying to save up whenever possible, it is also suggested that you keep some money aside for emergencies. Thus, save smartly, buy responsibly and remember that a rupee saved is a rupee earned!

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Interest Rate
6%* p.a.
( 6.5% p.a. for Senior Citizens)(Open Kotak 811 and Book an FD to earn up to 7.00% interest)
Minimum Balance
0
Show Details
Features
  • You can now avail the benefits of the banking solutions with a single touch
  • Kotak 811 offers a virtual debit card (VDC) for the ease of online banking
  • Ideal for all your daily needs such as shopping, groceries, cab payments, and various others
  • Earn 7.00% interest on fixed deposits and Senior Citizens can earn upto 6.5% p.a. To know more click bit.ly/2KRtaSr
Interest Rate
6%
(Up to Rs. 1 Lakh)
Minimum Balance
Nil
Show Details
Features
  • Open an account only with the help of your Aadhar Card Can apply for this account at the micro ATM of IDFC Bank
  • Account offers Internet & mobile banking, free & unlimited ATM services, and various others.

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