Finance 101 - Saving Some Extra Dough

College students always have a need for extra money. Its not easy to save money when your friends call you up Thursday night for a party or invite you to a birthday bash. Food, alcohol, gas, cover fees, etc. – they all add up in cost. Nevertheless there’s always a way to get the best bang for your buck. While you might not think about it, little things can add up quite quickly to huge savings.

Getting a good rewards credit card can help you out. Most credit card rewards programs don’t charge a dime to join like Chase Freedom, it offers 1% cash back on all purchases and 3% on gasoline, groceries, and fast foods. While 1% might not seem like a lot, big ticket items and cumulative purchases can bring in a nifty chunk of change. If you travel considerably, you might consider a rewards card for frequent flier miles, since flying with a certain airline can add up to free tickets or cash back. If you are having trouble looking for a good type of rewards card, checkout the forums on Fatwallet.com for in-depth deal discussions.

Another way to save some extra cash is to setup a savings or checking account online. While most local banks offer a few percent yearly interest on your money, online banking such as with Charles Schwab, HSBC, and INGDIRECT can offer higher rates of interest since they don’t have all the capital fees that a walk-in bank might have. At HSBCdirect.com you can have a savings account for 5% yearly interest (one of the highest around) just by having your money sit in the account. Other banks might require you to put your money into a CD account to get that kind of interest, but with HSBC you can have your money liquid and available at the nearest ATM without any penalties that a CD account might entail. Also, online checking with CharlesSchwab.com or FirstRepublic.com can offer no surcharge withdrawls from any ATM around the world. Particularly in tourist destinations like Las Vegas, ATM fees can head up to $5 or $6 just to use their machine. With those accounts, you can use any ATM in sight for free.

Finally, shopping at warehouses selling items at bulk prices such as Costco can add up to some significant savings. Places like Costco may require membership to purchase, but if your parents or friends have cards, you can easily tag along as long as one person has a card. Ground beef, frozen foods, snacks, and party supplies can easily be purchased in bulk – particularly if you’re looking to split between roommates. Savings can range from 10%– 30% off local supermarket prices, so shopping in bulk can add up quickly. Additionally, party supplies such as plastic cups, disposable plates and utensils, beer, wine, and hard alcohol can be purchased for a discount.