How to Save Money in College

Ever heard the song “Young Dumb & Broke”? It’s definitely a jam, but not a great way to live while you’re in school. (Well, the “young” part is okay—just not the “dumb and broke” part.) In all seriousness, you should aim to save as much money as possible in college so you can cash flow your education and still graduate with something in the bank!

The more money you save during college, the more prepared you’ll be for the real world once you finally get your diploma. And student loans aren’t the answer here. Every dollar you save now is a dollar you won’t have to borrow later (and pay back with interest).

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Where are you really at with money?

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And guess what? You don’t even have to eat ramen every single night to put yourself in a good spot with your money (but if you want the whole college experience, go right ahead). There are plenty of ways to pile up cash in this stage of life. Here’s how you can cut costs on some of your biggest college expenses and where the savings should go once you’ve got some.

How Can I Save Money on College Housing?

Of course, the easiest way to save on college housing is to live at home if that’s an option. It wipes out rent, utilities and most of your food budget in one move. But if living at home isn’t possible, here’s how to keep your housing costs down anyway.

Live at home if you can.

You’re probably ready to get out of the house and bask in your new freedom, and living at home might be the last thing you want to do. And obviously, this won’t be an option for everyone. But just think about not having to pay thousands of dollars per year on rent, utilities or food. (Homemade food is way better anyway, right?) All that extra money in your bank account will be totally worth it.

Compare the costs of living on versus off campus.

Renting an apartment isn’t always going to be cheaper than living on campus, and living on campus isn’t always going to be cheaper than renting. You just have to look at all the options available at your school of choice and in the surrounding area to see what’s most affordable. Pro tip: Don’t forget to factor in utilities and transportation costs.

Find a roommate.

If you do rent an apartment, having a roommate (or two or three) will cut your expenses way down. Make sure your landlord has approved each individual roommate and that they all sign the lease so you won’t be left hanging financially if one of them has to move out.

Ask yourself how much space you really need. 

You might want a huge kitchen or your own bathroom, but let’s be honest: Do you really need all that extra room while you’re trying to save money? You might be able to get by in a smaller space for right now, and then once you have a fully funded emergency fund and are financially stable, upgrade to something bigger!

Get creative with your bills.

Unplug your electronics when you’re not using them to save energy, use cold water when you can, turn off the air conditioning or heat when the weather’s good, check for dripping faucets or lights left on before you leave the house, and hand-wash some dishes (it won’t kill you).

How Do I Cut My College Food Budget?

You can cut your college food budget by splitting groceries with roommates, watching how often you eat out, and using your meal plan wisely if you have one. You can’t live without food, but you can live without daily avocado toast.

Split food costs with roommates.

You and your roommate(s) can save a ton if you go in on groceries––especially if you buy in bulk. You may even find that grocery shopping or cooking together is a fun way to hang out.

Be strategic about eating out. 

It’s okay to go out with your friends every once in a while, but when you’re constantly getting waffles at 2 a.m. on impulse, it really starts to add up. (And both your wallet and your body will start to get mad at you.) Budget the amount of money you can spend on eating out every month, and once you spend that money, you’ll have to say no until next month.

Be smart about your meal plan.

Meal plan costs can vary depending on your school. Cheaper ones can be about $1,000 per semester, but some can be three times that (or more)! Some colleges might make you get a meal plan for your freshman year, so if you have to get one, make sure you actually use it. But if you don’t have to get one, meal prepping and making food from scratch are your new best friends.

Use coupons.

You probably don’t want to use a coupon on a first date, but there’s no shame in using them to save on groceries. Even if they only save you a dollar here and there, it’s still worth it—those savings can add up quickly.

How Can I Lower the Cost of Tuition and Books?

You can lower the cost of tuition and books by taking gen ed classes at a community college, choosing an in-state school, buying textbooks used instead of new, and stacking every scholarship and tax credit you qualify for. Tuition is the most expensive category on your list—which also means it’s where the savings add up fastest.

Buy used books.

It’s crazy how much you can save just by getting your textbooks from eBay or a used bookstore instead of the campus bookstore. You probably won’t find all your required reading at those cheaper places, but even if you do have to use the campus bookstore, they’ll usually give you the option to rent instead of buy. Definitely go with renting—you won’t need to go back and read your physics textbook once the semester is over.

Take classes at community college first.

You can save a lot on tuition by getting all of your general education requirements out of the way at a community college before heading to your school of choice. The price difference is insane! Seriously––a year of tuition at a private school is, on average, more than nine times the cost of a year of tuition at a community college.¹ Just make sure your credits will transfer to the college of your choice.

“Getting your gen eds at a community college is a great way to save,” said Jenn, a member of THE Ramsey Baby Steps Community on Facebook. “Our local community college charges $80 per credit if you're in-county, with a lot of tuition assistance available.”

Go to an in-state school.

The average published tuition and fees at a public, in-state school is $11,950 per year for 2025–26, and the average for a public, out-of-state school is $31,880 per year.² That’s a difference of nearly $20,000 a year!

And that’s before food, housing, books and all your other expenses. Factor those in and the total cost of attendance averages $30,990 a year at an in-state public schools versus $50,920 at an out-of-state public school. If it’s a private college, the cost skyrockets even more—an average of $65,470!³

Apply for scholarships.

It’s kind of a no-brainer: If you find scholarships, you won’t have to worry as much about tuition costs. Some scholarships even cover your books, food and housing. And if money’s especially tight, pair those scholarships with more ways to stretch a smaller income.

Take advantage of tax credits.

Two popular tax credits can help you or your parents (if they claim you as a dependent) save some dough when tax season rolls around: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC). You can only claim one of these credits per student per tax year, and you have to meet the eligibility requirements to qualify for them. But if you do, claiming the AOTC or the LLC can help you recoup some of the money you spend on higher education expenses, like tuition and textbooks. 

How Can I Save Money on Transportation in College?

Not everyone remembers to factor transportation into their college budget, especially if they know they’re going to be living on campus and walking a lot. But you’ll need to get to places off campus at some point, so it’s smart to think about this stuff ahead of time. And the cheapest way to get around might just be a way that doesn’t involve buying gas.

Ride a bike.

Nobody likes spending money on gas. With bikes, you don’t have to.

Carpool.

Did we mention that nobody likes spending money on gas? We’re not saying you should only make friends in college so you can split the cost of fuel, but it’s absolutely one of the perks of friendship.

Use public transportation.

This could be anything from the bus system to subways to rideshare services. According to the American Public Transportation Association, riders can save more than $13,000 a year by using public transportation instead of driving.⁴ Depending on how often you use public transportation, you might want to buy passes instead of individual tickets––it costs more up front, but it will help you save in the long run.

How Can I Save Money on Entertainment in College?

You’ll definitely need to kick back between classes and tests, and you can save while doing it. You just need to be smart with your fun money. Start by canceling any subscriptions and memberships you’re barely using. Then seek out low- or no-cost entertainment alternatives like the library.

Here’s how to do it without breaking the bank.

Cancel the cable.

Let’s be real—cable TV is pretty much a waste of time and money. There are plenty of cheaper options that let you pick what you want to watch on demand so you’re not flipping through the channels for hours and paying for junk you don’t watch. Hulu, Netflix, Google TV, Amazon Prime Video, Apple TV and Sling TV are all good, but a word to the wise: You really just need one streaming service at a time.

If you have a gym membership, cancel it.

Staying fit is great, but if you really need to save, cutting your gym membership could save you a ton of money. Plus, your school will probably have a student gym that’s included in the price of tuition and fees. And there are plenty of ways to get exercise without going to the gym—like running, intramural sports or throwing a frisbee around.

Go to the library.

Yeah, remember those? If you’re bored because you canceled your cable and gym membership and you can’t buy anything, there’s always the option of reading all the books and watching all the movies in the library for free.

Build strong friendships.

Building good relationships in college has way more to do with the amount of time you invest than the amount of money you spend. Even if it’s just getting a group together for a game night, going thrifting, or sitting around and talking, the time you spend with your friends is something you’ll remember way past graduation—a whole lot more than napping and playing video games.

Bonus Money-Saving Tips in College

Here are a few more ideas to save some cash on and off campus.

Sell your stuff.

If you need cash, eBay is your new best friend. Or Facebook Marketplace, or posting pics of your stuff on Instagram—whatever gets the things you don’t need out of your house and the money into your pocket.

Have a part-time job or side hustle.

Don’t underestimate the effect that a few babysitting or dog-walking jobs per week can have on your savings. For a steadier income, a part-time job (no more than 15–20 hours per week) is a great idea too. Just don’t work so much that your grades suffer.

Find all the student discounts and coupons you can.

We’re talking about all the restaurants, museums and movie theaters in your area that give discounts to college students. Wherever you go, don’t be afraid to flash that student ID and ask if there are any deals available.

What Should I Do With the Money I Save?

Once you start seeing money build up from all your saving, your first goal should be to build a $1,000 starter emergency fund. That’s the first of Ramsey’s 7 Baby Steps—the best way to build a good financial foundation, especially early in life. And that emergency fund comes before investing, saving or paying down any debt.

Here’s why it matters: An emergency fund is your insurance policy against debt. When your car battery dies or your laptop crashes, that fund covers it in cash—not a credit card, and not a “convenient” loan added to your next tuition bill. And when you clear out all your debt (Baby Step 2), you can then save a full emergency fund of 3–6 months of expenses (Baby Step 3).

When you’re out of school and earning a full paycheck, the habits formed with the Baby Steps will keep paying off. Saving money in your 20s looks a lot like saving money in college, just with more zeros. It’s all part of building smart habits at every life stage of your financial journey.

Be Intentional With EveryDollar

No matter where you go to school, where you live, or what you eat (please eat more than just ramen), you want to be intentional with your money as a student. The best way to save money in college is to know exactly where your money is going. And that means making sure your budget is ready at the start of every month. This framework will keep your money on the straight and narrow.

And EveryDollar, Ramsey’s budgeting app, can help you build, track and keep that budget every single month. It’s a one-stop shop for smart saver students like you. You can start budgeting with EveryDollar for free today!

If you stay disciplined and keep these money-saving tips in mind, you’ll be in good shape as you move through college life. You’ve got this!