8 Mistakes Freshmen Make That Cost Real Money

Most freshman money mistakes are not about bad decisions. They are about not knowing what things cost until after you have paid for them. This list covers the eight most common financial and practical errors, roughly in order of how often they happen and how much they hurt.

The Eight Mistakes

Work through this list before your first semester starts. Most of these cost nothing to fix in advance and can easily run $100 to $500 each if you let them happen.

1. 1. Losing a key or keycard. Replacing a dorm key at many universities costs $75 to $200. Some charge per lock core replacement. Track your key. The Metal Brik wallet includes a removable keyring specifically for this reason, and the wallet for college students also has a rechargeable tracking card so you can find it from your phone.
2. 2. Buying textbooks new at the campus store. The campus bookstore sells new textbooks at full price. The same book is almost always available used, rented, or as a PDF for 50 to 90 percent less. Check AbeBooks, Chegg, or your library's course reserve before spending $200 on a book you will use four times.
3. 3. Not using student discounts. Your student email unlocks discounts at Amazon, Spotify, Apple, Adobe, Microsoft, and hundreds of local businesses. Most students leave hundreds of dollars of annual value unused because they never look for the discount. Search '[service name] student discount' before you pay full price.
4. 4. Overdraft fees on a bank account. A $5 purchase that triggers a $35 overdraft fee is a brutal lesson. Set up low balance alerts on your phone for your bank account. Better yet, open a student account that does not charge overdraft fees. Most major banks have them.
5. 5. Signing up for a high-interest credit card. Card companies target freshmen aggressively. A card with a high APR that you carry a balance on will cost you more than any single purchase on it. If you get a card, get a student card with a low limit and pay it off monthly.
6. 6. Eating out every meal. Dining hall food gets old fast, but restaurants add up fast too. A meal plan often works out to $8 to $12 per meal. Eating out regularly can run $15 to $25 per meal. The difference over a semester is significant. Cook a few meals a week and use the dining hall when you have meal swipes.
7. 7. Not appealing financial aid. If your family financial situation has changed since you applied, you can appeal your aid package. Most students do not know this or assume it will not work. It often does. A single successful appeal can change your financial picture significantly.
8. 8. Buying duplicates of things your roommate already has. Coordinate with your roommate before move-in on who is bringing what. Two mini fridges, two microwaves, two irons. It happens every year. A quick text before move-in saves money and floor space.

The Common Thread

Most of these mistakes share a root cause: not knowing the system before you are in it. Universities are set up in ways that are not always obvious to first-generation or first-year students. The students who do best financially in freshman year are usually the ones who asked the most questions during orientation and the first two weeks.

Your RA, financial aid office, and academic advisor are all resources that are included in what you are already paying for. Use them before you need them, not after you have already made the expensive mistake.

For keeping your everyday finances organized, a college wallet that holds your ID, a couple of cards, and cash without bulk is more useful than you would think. Small friction points add up when you are already managing a lot of new information.

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