Money Smarts Blog
Financial Tips for Your Freshman
Jul 10, 2023 || Nikki Hernandez, Member Experience Coach
I can’t believe my daughter, Avery, will be starting her junior year of college this fall! She was lucky enough to have earned an academic scholarship for all four years to help with the steep cost of higher education. In addition to her demanding course load while studying nursing, she also makes extra cash on the side as a barista — and she saves every cash tip.
Raise your hand if your soon-to-be college student is good at money management (or doing their own laundry or waking up before 10 a.m.). Yeah … not many are.
As a parent, sending your first (or middle or last) child off to college is an emotional experience. After all, this is your baby we’re talking about. But part of our job is to teach our babies how to spread their wings, and that means helping them become financially independent. Or, at the very least, learn ways to find savings as they navigate this new phase of life.
So let’s get started on a few tips to help prepare your freshman for college and save a little money along the way.
Take advantage of student perks
Flash that student I.D. for discounts on shopping, dining, technology, local attractions and more! Avery picked up her latest computer through Apple’s student discount, which helps students and teachers score lower pricing on some of their most popular products and software programs (Adobe, Dell, HP and more have similar discounts for students).
Depending on where your student goes to school, there are likely cheaper options for them to take public transit. And if you haven’t looked into Amazon Prime Student yet, definitely check it out. New members only can try a free 6-month trial, then their monthly cost goes up to $7.49 (still half the cost of regular Prime). Bonus: free food delivery from GrubHub is included in Prime Student, so your hungry college kid can get food no matter how late they’re up studying!
Talk about finances
I’m not saying you have to cut your kid off now that they’re out of the house, but do talk to them about what you will and won’t contribute to during their college years. Personally, we help Avery with her gas, groceries, phone and school-related expenses, but she’s on her own for eating out, new clothes, etc.
Buy your books online
Avery always used to rent books for her courses through the Amazon Textbook Rental Program. What a huge cost savings compared to buying them at the campus bookstore, not to mention free shipping! Although Amazon no longer offers physical textbook rentals as of April 1, you can still get digital rentals (which, let’s be honest, most students prefer anyway). Some other textbook rental services we’ve heard of that might be worth checking out include BookScouter, BooksRun and Chegg.
Shop Iowa’s Tax-Free Weekend, Aug. 4-5
Iowa’s sales tax holiday is set for the first Friday and Saturday in August each year. If your student plans to stock up on new clothes or footwear for the upcoming school year, this is a great time to do it.
Keep applying for scholarships
Unlike student loans, scholarships are free money to help students pay for college without the financial burden of paying them back. They’re an amazing resource that will benefit your student while in college and beyond.
Not sure where to start? Connect with the financial aid office at your child’s school or check out the Department of Labor’s free scholarship search tool. You may even want to check with your own employer or other local community organizations to see what they offer in terms of scholarships. Since 1999, IHMVCU’s invested nearly $400,000 in scholarships for more than 300 students through our Cash for Class Scholarship. Check back in January 2025 for next year’s application.
PRO TIP: PAY INTEREST ON STUDENT LOANS A lot of parents (and students) don’t know that interest starts to build up as soon as the funds are sent to the school and keeps growing whether you’re paying on your loan or deferring it. It can significantly add to the amount of money you’ll have to pay back, so if you have the funds to pay even a fixed amount each month while you’re still in school, you might save yourself a headache down the road.
