Things to Save Up for in College: A Student's Guide to Smart Spending

College can be pricey, and there usually isn’t much cash left over after covering all your educational expenses. Still, saving for the future is important, even when money’s tight. With so many costs competing for your attention, it can be tough to know what’s actually worth saving for. Here are several things to keep in mind when setting aside money during college.

Daily & short-term expenses

First, you need to make sure that your day-to-day needs are met. Having funds in your checking account to cover the little expenses can help you avoid big surprises later. Here’s a short list of both daily and monthly expenses that you should plan to save for:

• Groceries & snacks: You’ll likely need a few groceries for late-night study snacks or for covering meals when the dining hall isn’t open. 
• Transportation: You’ll need a way to get around campus and your college town. Having savings for public transportation, ride shares, or a parking permit helps you stay mobile.
• Personal hygiene: Grooming and hygiene expenses are easy to overlook since they don’t occur daily. Make sure to save for things like haircuts, toiletries, and laundry costs.
• Emergency fund: Costs you can’t always predict, such as replacing a lost student ID, can occur at any time. It’s wise to have a small financial cushion for emergencies, so you don’t have to rely on your credit card for all of them.
  
  

Academic & career growth

As a college student, you’re learning and preparing for what comes next. Your classes, internships, and networking opportunities can open the door to exciting opportunities after graduation, but those chances often come with a price tag. Beyond tuition and housing, here are a few academic and professional expenses to save for:

• Textbooks & school supplies: Having extra money set aside for textbooks, digital course codes, or lab materials can relieve stress and help you make class a priority. 
• Internship or study abroad costs: Some of the best learning experiences happen outside of the classroom and may require travel or living expenses not covered by financial aid. Saving money lets you take advantage of these opportunities.
• Professional gear: You may need a new interview outfit, a reliable laptop, or specialized software for your major. Investing in quality gear now can pay off later. 
• Portfolio or website: If you’re in a creative or business field, saving for a domain name or design tools can be a smart move to stand out in your future career.
• Certifications or tests: Some careers require exams, like the GRE, LSAT, or other professional certifications. Since these can be pricey, planning ahead can take the pressure off you when it’s time to register.
• Graduation costs: You usually need to purchase your own cap and gown to wear at graduation. A savings cushion will help you accept your diploma with ease.

Financial goals & security

In college, it can be easy to focus on what’s right in front of you, like mid-term exams or that big presentation next week. However, looking ahead is just as important. The sooner you start preparing for life after graduation, the smoother your transition will be. Here are some long-term financial goals worth saving for:

• Off-campus housing: Saving money for your security deposit on your first apartment or down payment on a house can be a great investment. 
• Loan payments: Get ahead of your student loan payments by saving for your first few payments once your grace period ends.
• Investing: Even small amounts can make a difference over time. Whether you’re starting a business or adding to your index funds, investing helps your money grow faster than in a typical savings account with a normal interest rate.
• Saving for retirement: It may seem like a long way off, but retirement savings compound over time. To become a better money manager, save early and often.
• Major life events: Big milestones can be expensive. Boosting your savings for major life events now, like paying for a wedding or buying a car, makes budgeting simpler.
  
  

Nice-to-haves

College is a great time to learn how to budget wisely, but it’s also okay to spend money on things that make life easier, more comfortable, or just more fun. Some items aren’t necessities, but they can help you stay organized or motivated. Others are essentials worth upgrading for better quality and longevity. Here are a few examples worth spending on and saving for:

• Tech & gadgets: A new fitness tracker, digital camera, or pair of noise-canceling headphones can make workouts, downtime, or study sessions a lot more enjoyable.
• High-quality basics: You likely use items, like your bedding, cookware, or phone, every day. Spending a bit more upfront on quality items can save you from frequent repairs or replacements later.
• Decor & personal items: Your dorm or apartment should feel like home. Saving up for decorations, sturdy furniture, or your favorite book series could be good options to make your space cozy and bring you joy.
• Memberships & services: Some subscriptions, like streaming services, cloud storage, or a meal kit, can make college life more convenient and enjoyable. Be sure to take advantage of the sales and student discounts that companies may offer you. 
  
  

Personal growth

College is about more than academics; it’s a time to explore who you are and what matters to you. Becoming independent, meeting new people, and exploring new interests all contribute to your personal growth. Investing in yourself can make that journey even more rewarding:

• Lessons or classes: Taking a class you’re passionate about, like dance, pottery, or martial arts, can be a great way to learn new skills and give your mind a break.
• Hobbies: Whether it’s new running shoes, art supplies, or a musical instrument, setting aside funds for activities that make you happy is money well spent. 
• Books & learning tools: Budgeting for personal development books, audiobooks, or online courses can support self-improvement and growth outside the classroom.
• Donations or causes: Supporting organizations or causes you care about can be personally fulfilling and help you make a positive impact in your community. 

Health & wellness

Caring for your health is just as important as your grades. College life can be very demanding, so taking care of your physical and mental health can help you perform better in every area. Making room for wellness in your savings account can lead to long-term savings on your health: 

• Fitness memberships: Whether it’s a gym membership, yoga studio pass, or intramural sport, investing in fitness has long-term benefits for your health and stress levels. 
• Healthcare expenses: Co-pays, prescriptions, or over-the-counter medications can add up. Having a health fund gives you peace of mind. 
• Insurance costs: Health, dental, or car insurance premiums may become your responsibility during college, so it’s smart to plan for them.
• Self-care & wellness tools: Budget for things that help take care of yourself, like vitamins, massage therapy, or mindfulness apps.
• Healthy food options: Sometimes the cheapest food isn’t the healthiest. Keeping a little extra cash for nutritious meals or snacks can help you feel better and stay energized.

Social life & experiences

When you attend class, eat, work out, study, sleep, and repeat, your social life can sometimes take a backseat. It’s important to make time for friends and the cool experiences you’ll have with them. There are plenty of fun, affordable ways to hang out with friends without constantly refreshing your online bank account. Here are some ways to plan:

• Nights with friends: A small allowance for hosting or going out helps you enjoy time with friends without the fear of overspending.
• Campus clubs & events: Club dues, t-shirts, formals, fundraisers, and intramural sport fees can add up, so it’s smart to save a little each month.
• Gifts: Whether for birthdays or holidays, putting aside money for gifts shows appreciation for friends and family without causing last-minute panic.
• Events & tickets: Going to a local hockey game, concert, or comedy show could help you create lasting memories. Save early so you don’t miss out. 
• Vacation: Spring break getaways or post-grad trips can cost a lot of money. Saving early for vacations ensures you can enjoy the experience without financial anxiety.

As you can see, there are a lot of things to save up for in college. While there’s no shortage of college expenses, you don’t need to spend on all of these examples. By planning ahead and prioritizing what’s important to you (whether that’s your education, health, or experiences that bring you joy), you can make the most of your college years without unnecessary money stress.

Having a clear why and tracking your spending makes it easier to stick to your goals. To reach your savings goals faster, try a creative money saving challenge. With a little time and dedication, it won’t be long until you’re able to cover your expenses and start saving for your future needs, as well.