10 Money Saving Tips and Tricks for Students and Young Adults

If you’re a student or recent graduate finding it difficult to save money, you’re not alone.

Many of your peers may be working part-time or just starting their careers too. Just having your first real paycheque is a big deal, so you shouldn’t be hard on yourself.

That said, saving more money now can have a profound impact on your financial future, and the saving habits you learn can have a lasting effect on your life, especially in 2025, where inflation is on the rise worldwide and high interest rates are impacting the way Canadians borrow money.

Here are some of the best tips and tricks that you can apply to start saving more.

1. Create a budget to curb impulse spending

No matter your age, having a budget is essential since it’ll give you an accurate look at your finances at any given time.

Start by tracking your expenses for a few months. What you’ll want to do is write down or log everything you spend money on. By doing this for a while, you can see exactly where your money is going. You may quickly realize, for instance, that you’re spending more than you’d like on things you don’t necessarily need. By cutting these out, you can put more towards things that matter, like savings or that trip you always wanted to take.

When it comes to creating your budget, you’ll want to list your after-tax income at the top. Follow that up with your fixed expenses, like rent, groceries, student loans, etc. Below that, list out limits for fun things like entertainment, take-out out or even gifts. By having a budget in front of you, you can make adjustments as needed – just make sure that it’s realistic and takes your lifestyle into account. No one is expecting you to stay on budget every month, but you’ll need one to keep you on the right track.

There are a couple of methods you can use to make your budget, including:

Budgeting apps

Budget apps are a great way to track your living expenses and spending habits right from your phone. There are numerous free and paid apps available for Apple and Android phones, including YNAB, Buddy Budget Planner, and Monarch. Digital versions of budgets on your phone can make it easier to see where you are in terms of your spending limits and savings goals, helping you stay on track.

Excel sheets and printable templates

Microsoft offers several free Excel sheet templates you can download onto your computer. These templates are easily customizable and shareable with other devices. You can also print physical copies to keep in your home if you wish.

2. Pay yourself first

With a budget in place, you may want to consider paying yourself first. What this means is that you’ll build savings, like an emergency fund, your retirement savings or a down payment for a home, right into your budget. If you prioritize them as one of your fixed expenses, you’ll essentially be paying yourself first since you’re putting savings ahead of your fun expenses.

To make things easier, set up an automatic transfer from your chequing account to your savings account on the day you get paid so you never miss the money. It doesn’t have to be a lot of money you’re saving. Even putting aside just $25 a month to start can make a significant difference. As you adjust to your new budget, or earn more money, you can slowly increase the amount you’re saving too.

3. Avoid debt

Generally speaking, you should try to avoid debt as much as you can since the interest payments you’ll be making can set you back. The one exception to this rule is student debt, where the hope is that higher education will lead to a higher income.

Credit card debt is typically one thing many new graduates struggle with. While there’s no denying the convenience of credit cards, the interest rate often exceeds 20%. It’s very difficult to save money when you’re paying that much interest.

As we mentioned earlier, with interest rates on the rise, the cost of borrowing money is even more expensive than it used to be. While there’s nothing wrong with using credit cards. Just make sure you’re paying off your full balance by your statement due date, otherwise collecting interest can build up quickly and derail your savings goals.

4. Watch out for excessive fees

Once you graduate, you’ll quickly realize that fees can creep up on you. One good example is banking fees. As a student, these fees are typically waived. However, once you graduate, you’ll be transitioned to regular bank accounts, which come with monthly fees. These fees can add up, which is why you’ll want to see if there’s any way to get your account fees waived by maintaining a minimum balance. You may also want to consider switching to a no-fee online-only bank.

While not exactly fees, you may also want to keep an eye on some of your monthly recurring expenses, like your cellphone bill or subscription services. These monthly costs are easy to forget about and can add up to quite a bit. Renegotiate your wireless plan whenever you can and consider cancelling some of your subscriptions since it’ll free up some of your cash flow.

5. Take advantage of employee benefits

A financial practice that’s often overlooked is maximizing your employee benefits. If your employer offers additional financial incentives as part of your overall compensation package, it’s in your best interest to take full advantage of them. One common benefit is a defined contribution pension plan. That’s where your employer would match your retirement savings contributions by a certain amount. For example, they’ll match up to 2% of your salary.

Another example is employee stock options. Some employers will offer stock to their employees at a discounted rate or for free. For example, you might be awarded a 25% match for every dollar you put in. The catch is that you may not get access to the free stock until it has vested for a set period, such as one year. Whether it be a pension plan or stock options, maxing out your benefits is worth it since it’s free money.

6. Consider opening high-interest savings accounts or student bank accounts

Choosing the right savings account can make a big difference in your overall savings plan. When it comes to saving money as a young adult and student, you may want to consider the following accounts:

• Savings account with high interest: These accounts offer higher interest rates compared to standard savings accounts. This means that the money you deposit into your account will grow at a faster rate, making it a great option if you’re trying to build an emergency fund. For better interest rates, look at online banks and credit unions.
• Student accounts: Most major banks in Canada have specific accounts tailored to students. These student accounts often come with no monthly service fees, free e-transfers, cash-back incentives, and sign-up bonuses. You can use

7. Take advantage of free activities and amenities on campus

If you’re a student, take advantage of free amenities and programs on campus. Most college and university campuses offer free mental health services, gyms, libraries, and other fun, free activities for students looking for ways to save money and still have a good time.

8. Shop second-hand on Facebook marketplace

Rather than buying new clothes, look at marketplaces like Facebook online. Usually, you can find the used item you’re looking for at a discounted price. Shopping at local thrift stores is also a great way to save money when you buy clothes.

9. 2025 student discount programs

Start saving money as a student by applying for student discount programs. Programs like the SPC card offer discounts to numerous retail stores and restaurants. You can also find discounts on cell phone plans, public transit cards, and more.

10. Maximize your TFSA and RRSP accounts

Even as a young adult and student, opening a TFSA and RRSP is a smart money move:

• Tax-free savings account: Any money you deposit into a TFSA will grow tax-free. You can also withdraw money from this account anytime without having to pay any taxes or penalties. The contribution room for 2025 is $7,000 and is ideal for both short and long-term savings.
• Registered retirement savings account: Contributions you make to your registered retirement savings plan are considered tax-deductible. This means that you can lower your taxable income, which can result in a bigger tax refund at the end of the year. This is a good option if you are now working full-time and want to save money long-term. Many employers will also match your RRSP contributions.

FAQs

How can I budget on a low income this year?

Saving money and making small changes to your routine, like meal prepping (batch cooking), taking public transit, avoiding impulse purchases, shopping at thrift stores, and being more aware of what you’re buying when grocery shopping, can help you improve your financial situation in 2025 and help you save money where you can.

Rather than pay the full price at grocery stores, look for coupons in weekly flyers to save money where you can. You can also sign up for a free library card in your community to borrow books, movies, and other resources. Additionally, consider washing your clothes in cold water to save money on your utility bills.

Is it better to save or invest in 2025?

If you have additional funds available, opening an investment account can also be beneficial. You don’t need to start with a million dollars. If you have an extra hundred dollars a month in your monthly budget, instead of using it at local coffee shops, consider putting it towards investments so it can grow over time.

The bottom line

When it comes to saving money, you need to find what works for you. The tips above are a good start, but you could also consider shopping around, buying used, or starting a side hustle to save more money. The key point is to think about what your goals are for the money that you’re saving. That could be buying a house or taking a vacation. You need this goal in place as it’ll motivate you on your journey.