Summer is usually a time when college students can pick up a full-time job and set aside cash for the next semester. But this year, things are different. Millions of college students saw their summer jobs fall through because of the coronavirus, leaving them with less savings than expected.
The pandemic may have cancelled your job, but it hasn’t stopped fall classes. With most colleges still running, how can you handle the cost of your education when you’re starting on the wrong foot? Check out these money management tips to help you save more money.
1. Take Advantage of Remote Learning
You may be attending class via Zoom this fall, but you probably won’t see a discount for remote learning.
That’s a bummer, but there may be a silver lining. With no need to make an in-person appearance, you can cut costs by living at home or with roommates in a cheaper neighborhood. This can help you avoid many of the costs of attendance, such as dorm rooms and eating plans.
2. Draw up a New Budget
Living off-campus may be cheaper in many respects, but it can bring about new expenses you weren’t expecting. If you and your friends moved out of the city to score a rock-bottom rental, you’ll probably need a car to get around. Now you have to think about how you’ll pay for maintenance, gas, parking, insurance, and more.
You’ll have to budget for these new expenses carefully. To do that, you’ll have to note down what your income is this fall, including:
-
Student loans
-
Savings
-
Any help you get from family
Compare this list to everything you’ll need to pay for over the year, including:
- Tuition
- Books
- Groceries
- Rent
- Bills
Set your spending limits on the above expenses to ensure your income stretches to cover all your bills.
3. Set Aside Savings
A well-balanced budget will include emergency savings so that you aren’t caught out when something goes wrong. Like if that used car you get runs into trouble, and you have to take it in for surprise repairs.
Without an emergency fund, you may want to consider borrowing a personal loan carefully. If you don’t have great credit, an installment loan for bad credit may be one of the alternatives to mainstream banks.
Bad credit installment loans work as a safety net for when your emergency fund falls short, but it doesn’t replace the need for savings. Tweak your budget to set aside some savings, even if it’s just $10 here or there. That $10 is better than nothing!
4. Apply for Financial Relief
While you may not qualify for traditional unemployment insurance as a student, you may be eligible for the federal pandemic unemployment assistance (PUA) program. This special benefit is a part of the CARES Act and may be available if you lost work because of the pandemic, even if you are:
- Self-employed
- Seeking part-time employment
- Someone who doesn’t qualify for traditional UI, including students
As a relief benefit, the PUA is not a personal loan you have to pay back, but you will have to pay taxes on it.
Bottom Line
The new semester may be the strangest one yet, but it probably won’t set a precedence. Eventually, things will return to normal, including your ability to work and save between semesters. Until then, fall back on your budget and reach out for help when you need it!
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