College has a way of costing more than expected. The biggest money drains aren’t the obvious expenses. They’re the spending traps that can sink students who are handling their own finances for the first time.
Here are the five biggest spending traps to watch out for before they drain your checking or savings account.
1. Credit Cards
Starting with a student credit card during college gives you several years to establish a positive payment history before you need credit for major purchases like a car or home. Building credit early is smart since credit scoring agencies, like FICO® and VantageScore®, factor in the length of your credit history when calculating your score. Just remember to use credit responsibly - the average college student graduates with $3,280 in credit card debt on top of student loans.
Before accepting any credit card offer, ask yourself if you have a way to pay the full balance every month. If you’re relying on part-time work or hoping your parents will help with payments, that might not be a reliable source. If you need to build credit, consider becoming an authorized user on a parent’s account instead. Our Share Secured Credit Card is another great option since it uses your savings account as collateral, ensuring a safe way to learn financial behavior and build credit.
2. Textbooks and Course Materials
The campus bookstore makes buying new textbooks feel inevitable, but paying full price is one of the biggest money traps in college. Many students panic-buy expensive textbooks during the first week, only to discover they barely use them or could have found them much cheaper elsewhere.
Wait until after the first week to buy textbooks. Many professors will tell you which books you actually need versus which are just recommended. Then check rental sites, used book markets, or see if your library has copies. For books you must buy, compare prices across multiple sites and consider digital versions, which are often significantly cheaper.
3. Meal Plans
Most students use less than 50% of their prepaid meal plan. Premium meal plans often cost hundreds more and include meal swipes and dining dollars that expire unused, but they’re marketed around student concerns about running out of food or missing campus events involving food.
Start with the smallest meal plan allowed for your housing situation. Track your actual eating habits during the first few weeks to see if you need to increase the number of meals. Most students eat fewer campus meals than they expect, especially once they start eating off-campus with friends. You can typically upgrade mid-semester if needed, but downgrading is usually impossible after the school’s deadline passes.
4. Financial Offers
Students receive constant offers for easy money through fake work-from-home schemes, bogus investment opportunities, or identity theft disguised as financial aid. These scams often appeal to students who are stressed about money.
Be suspicious of any opportunity that promises quick money, requires upfront payment, or asks for personal financial information via email or text. Real financial aid comes through your school’s financial aid office, not through unsolicited messages. If someone contacts you about money you didn’t apply for, it’s probably a scam.
5. Social Spending
College social life often revolves around activities that cost money, like eating out, entertainment, spring break trips, or Greek life fees. It’s easy to justify these expenses as part of the college experience, even when they create spending problems for your monthly budget.
Use values-based spending to decide how much you can realistically spend on social activities each month and stick to it. Look for free campus events, suggest low-cost alternatives when friends want to spend money, and remember that your real friends will understand budget constraints. The FOMO will pass, but the debt won’t.
Discover more ways to strengthen your financial foundation by exploring our college planning resources today!
