Spending:Money

Spending Money
Time Magazine reported back in 2007 (before the Great Recession), that the average adult American spends $3710 a month on goods and services. Housing, health care, taxes, insurance, food, and debt servicing consume most of our income, leaving a relatively small amount for discretionary consumer spending. It pays to be thrifty. Since then, the financial challenges of the Great Recession have made the road to prosperity even bumpier. Another Time Magazine article on “The American Dream” (July 2, 2012) mentioned a White House study on the middle class which concluded “it is increasing difficult to afford the American Dream as key goods – health care, college, and housing – have gone up more than income”.

In sum, a more frugal approach to spending is more important than ever given the weaker job market, rising costs, and widespread increase in student loan debt. Out-of-control or impulsive spending can make life unmanageable.

Students in particular need to monitor spending. There are ways to control spending and save more including:

1.	Keep a budget! (link to budgeting in managing money) If keeping a budget is too daunting a task, keep a small notebook with you and write down what you spend. If you track what you spend, you’ll be more aware of how to save. A little money saved here and there can go a long way.

2.	Use regular, transfers of money from your checking to savings account (automation) to accumulate savings. If you move money out of your checking account into a savings account you are less likely to spend it! (link to automation in managing money) For example, if you get paid on the 5th  of the month, transfer 5% of your paycheck to your retirement savings account and 5% of your paycheck to your big purchases savings account on the 10th of the month. You’ll still have 90% of your paycheck in your checking account to pay your bills and live. At the very least automation will save you time to focus on other things.

Read Ramit Sethi’s guide to automating your accounts. Ramit Sethi is the New York Times best-selling author of I Will Teach You To Be Rich. (link to Ramit Sethi in managing money)

3.	'''Take advantage of student discounts. Check out:'''

http://www.studentrate.com

http://www.bankrate.com

type student discounts into the search engine

4.	Use deal sites, rewards programs, and coupons. (See below)

5.	If you are planning a big purchase, do your due diligence on the item. Read consumer reports (to understand product strengths, weaknesses, and value) and look around for the best price. Google the product or service you are analyzing to find sources for product reviews, ratings, reports, and opinions.

6.	Learn how to spend less and live frugally, My favorite sites are:  http://www.wisebread.com/     Check out the section on “frugal living” as well as “best deals”. (In addition to general information on personal finance, this site has a section on the best personal finance blogs. http://www.bargaineering.com/articles/category/frugality  This site also has a section on frugal living.

Deal Sites
If you are in the market to buy a product or service, check out the sites listed below for deals. These sites offer a variety of products and services at a discount. Businesses use these deal “brokers” to build customer awareness. If money is tight, don’t buy things that you didn’t already plan to buy. Read the fine print; if there are strings attached that won’t work for you don’t waste your money. When a yoga class is suddenly available at half price maybe it’s because the class is offered at 5 a.m.

Just in case you do buy something you can’t use, there is a secondary market for the deals you need to resell. An active secondary market for deals is evidence that many people are buying deals they can’t or don’t use. Here’s a link to an article that offers suggestions:

http://www.huffingtonpost.com/2012/03/12/couprecoup-dealsgoround-groupon_n_1339638.html

If the deal provider goes out of business before you use your deal, the site that provided the deal should reimburse you. You can also protect yourself by buying the deal with a credit card that provides insurance for purchase transactions that are not completed.

Popular deal sites include:

http://www.Goupon.com

http://www.LivingSocial.com

http://www.Localdealsites.com

http://www.DealRadar.com

http://www.offermatic.com This site has a good approach to deal shopping. Offermatic lets you save money where you already shop by targeting discounts to your purchasing patterns and needs, and letting you accumulate points for further discounts.

Rewards Programs
Credit and debit card companies are taking notice of consumers’ interest in saving money, and rewards programs are growing in response. The program that will work best for you depends on your spending habits and the rewards offered. Look at these sites for rewards programs that best fit your needs.

http://www.discover.com/credit-cards/get-discover/student-card The Discover Student More Card - rewards students with cash back for every purchase

http://www.bankrate.com/creditcards/rewards

http://www.creditcards.org

http://www.creditcards.com

All of these sites cover credit cards with rewards.

Another Useful Website: http://www.gazelle.com Sell your used electronic gadgets for cash.

Textbooks & Software
Students can save a lot of money on textbooks and software. Check out:

http://www.amazon.com On Amazon.com students can rent electronic versions of textbooks for the Kindle. iPad’s iBooks app allows students to use the tablet as a textbook also.

http://www.coursesmart.com This is a great place to buy and sell textbooks for a good price. This website provides eTextbooks and eResources well below the price of printed textbooks.

http://www.studentrate.com Check out the section on textbooks.

http://www.Chegg.com Chegg does textbook rentals.

http://www.collegebookrenter.com College Book Renter is an alternative to Chegg. Between both sites, you should be able to find the book you need significantly below the cost of college book stores.

http://www.Half.com On this site students can buy new and used textbooks for low prices.

http://www.Textbooks.com Another site where students can buy new and used textbooks for low prices.

Did you know that software is often available to students at a huge discount? Websites such as the ones listed blow offer information about deals, discounts, bundled software or cash-back incentives. Students can also get deals in stores and at vendors' websites. Some high schools and universities require students to download software and read textbooks or class materials on e-readers such as the Kindle or iPad -- and software providers are responding accordingly.

http://www.globestudentdiscount.com/ Globe Student Discount helps you find good student deals.

http://www.studentrate.com/ Check out local and national Student Discounts & Deals

http://www.journeyed.com This site’s mission is to make software and related technology affordable for students, educators, and schools.

http://www.bankrate.com Bankrate.com has good information on student discounts. Go to www.bankrate.com/finance/personal-finance/student-discounts.

http://www.collegetips.com/college-money/buy-computer.php This site includes a section on how to save money on computer software.

Computers & Laptops
As computers and/or laptops are essential for students, deals for students are easier to find. Hold off on your purchase until you have a student ID or email address in order to get a deal. Apple offers discounts to college students with an “.edu” email address. Dell offers discounts to students as well.

Go to http://www.collegetips.com/college-money/buy-computer.php to learn about computer discounts for college students.

Many students will also require an upgrade or two while in school. If you anticipate frequent upgrades, it may make sense to buy refurbished computers which are considerably cheaper than new.  Apple and Dell sell refurbished equipment online. There are also websites that specialize in refurbished equipment.

Other sites to check out include:

http://www.globestudentdiscount.com Student Discounts & College Laptops Deals

http://www.studentrate.com StudentRate has local and national student discounts & deals

Cell Phones & Service Plans
http://reviews.cnet.com/cell-phone-buying-guide/ Start by reading this article to become aware of the numerous things to consider when buying a cell phone and service plan. Give some thought to your planned usage (including voice, text messaging, and data) as well as your needs regarding: performance & reception, usage while traveling, style & functionality, features, applications, web browsing, camera and multimedia functions, etc…. There’s a lot to consider, right? Choose wisely as you’ll probably need to make a two year commitment and pay penalties if you break the contract. If you tend to lose things buy phone insurance.

You can search auction sites such as eBay for deals.

http://reviews.cnet.com/cell-phone-coverage-map/?tag=rb_content;contentNav Use this link to check coverage in your area.

Always ask for a student discount when buying a cell phone or service plan.

Check out http://www.studentrate.com to find deals. Search cell phones and service plans.

Travel
College can involve a fair amount of travel. Flying home during breaks, studying abroad or in other U.S. cities, or travel for fun or education can really put a dent in your savings account. There are websites that can help you save money on travel. These include:

http://www.statravel.com/ STA Travel

http://www.studentuniverse.com StudentUniverse.com.

These companies partner with airlines to provide student discounts on flights and travel packages.

Air travel is only one piece of your travel budget. Here’s where student discount cards can help. STA Travel’s International Student Identity Card or ISIC (for students 12 to 26) gets you discounted plane tickets, a year’s worth of basic travel insurance, and discounts in stores, hotels, train stations, and museums worldwide. Some study-abroad programs require the student discount card. It can serve as an ID card (in lieu of a passport) once you are settled in a foreign country, and may even get you into some parties. STA also offers a similar program to travelers younger than 25.

On studentuniverse.com students can get similar deals without buying a card.

http://www.studentcity.com/ This is a travel company specializing in discounted spring break vacations for college students with discounts. But check other sources too so you are sure you are getting the best deal.

Other ways to save:

•	FareCompare analyzed three years’ worth of fare data and found that lower fares are often available at 3:00 p.m. ET on Tuesdays although you may not save much.

•	Start your air fare searches 3 to 4 months in advance if possible. Keep checking for discounted fares and ask for a refund if the fare price decreases.

•	Don’t check bags.

•	Be flexible. Adding a layover, mixing and matching airlines, or taking an early-morning flight can drive down the cost. Stretch out your trip to avoid flying on the busiest travel days.

•	If possible stick with the same airline to take advantage of frequent flier programs. Use these sites to get information and make comparisons:

http://www.webflyer.com

http://frequentflier.com

Other
Don’t be shy about using your student ID. Students can get discounts at many restaurants, museums, clothing stores, retailers, and movie theaters. Even when student discounts are not advertised, many retailers will provide a student discount with a valid student ID. It never hurts to ask.

StudentRate.com and GlobeStudentDiscount.com  provide information on these discounts.

University-focused group-buying websites such as CollegeBudget.com offer deals too.

Check out student discounts on bankrate.com too. http://www.bankrate.com/finance/personal-finance/student-discounts-can-save-kids-cash

Clothing retailers offer numerous sales to get younger customers in the door and spending. An alternative to paying retail prices (even sale prices) are clothing swaps. Clothing swaps are increasingly popular. Checkout: www.swapstyle.com

When it comes time to make a major purchase, do your homework. There are plenty of sources for product reviews, ratings, reports, and opinions. http://www.consumerreports.org/

Consumer protection is a serious matter; there are laws to protect against unfair transactions, scams, and products that fail to work properly. Contact the manufacturer if products fail to perform as expected. If no one will listen to you contact: the Federal Trade Commission. www.ftc.gov. 

General Tips to Help You Save

•	Don’t buy things you can get for free like water!

•	Don't buy new when used will do, especially with expensive textbooks and other big-ticket items, like a car.

•	Buy things out of season or during sales (like after the holidays).

•	Create a "wish list” and start waiting before making purchases.

•	Use a list. You'll save money by reducing impulse buys.

•	Ask for a student discount.

•	When you buy something new, sell something old.

•	Bring food and drink from home.

•	Try cheaper or generic brands.

•	Be energy-efficient. Turn off lights and unplug devices you aren't using.

•	Don't pay interest. Don’t buy more than you can afford and pay high credit card interest rates on unnecessary consumption.