Categories
In This Post
Start with Income
Common Expenses for College Students
Wants vs. Needs
Put Together the Budget
Know That There Is Help
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For many students, college is their first real taste of independence! Living away from home, making decisions for yourself, and working toward a career of your own – it’s all so exciting.
But with that newfound independence comes the need for financial responsibility. Creating a budget is a great starting point to develop positive money habits before you enter the “real world.” Here’s a quick guide to get you started.
First Things First: Let’s Start with Income.
Do you have any money coming in? Some full-time students live off a small lump sum of scholarship or loan money that gets them through each semester. Others work part- or full-time to manage the bills. You may even be someone who does a little bit of both!
Take inventory of any income you have coming in (that includes any money from your parents, too!). Make a note of the amount and how often you receive it.
That total is what you’re going to be working with.
Let’s Break Down Common Expenses for College Students.
Every student’s educational experience is different, so there is no one way to budget or even standard categories that will apply to everyone. Let’s look at some common expenses college students face. When you create your own budget, include what is relevant to you and exclude what isn’t.
Educational costs
For most students, their education is their biggest expense. Tuition, books, lab fees – the costs can feel overwhelming. Make a note of what these will be for you – your loans or scholarships will likely pick up the bulk of the cost, but you may still have to pay for some things upfront (like textbooks or class supplies).
Plus, depending on which organizations you join (like clubs, professional societies, or Greek life), there may be associated expenses or dues. Keep these in mind as you create your budget.
Housing and Utilities
Do you live on or off campus? If you’re on campus, your housing may be rolled into your educational costs, but for off-campus students, you will likely need to pay rent. Figure out how your housing costs will be split amongst any roommates and set aside that amount each month to pay your share.
Car
Many students who live off-campus own their own cars to commute to and from class. This means more expenses: Gas, insurance, repairs… and maybe a little extra in case you park in the wrong place when you’re running late and end up with a ticket.
Food and Groceries
If you have a dining plan, that’s typically wrapped into your educational costs, but any food you purchase outside of the plan is on you.
For students without a dining plan, you are 100% responsible for grocery shopping and feeding yourself.
Let’s be serious for a second – is ordering out multiple times a week necessary? It can certainly be a fun treat, but the costs (delivery fees, driver tips, etc.) add up quickly. If you’re working on a tight budget, cooking at home may be a more affordable option.
Pro Tip: There are tons of recipes and tutorials online for cheap and easy-to-cook meals for students. Common ingredients include rice, beans, ramen, pasta, or canned/frozen veggies, which are all cheap and easy to purchase in bulk.
Phone/Internet
Are you still on a family phone plan or are you paying for your service yourself? Is internet access part of your dorm fees/rent or is that something you need to pay for out-of-pocket? These are questions you need to ask yourself when budgeting in college because you will need internet access to turn in those last-minute assignments!
Clothing
For day-to-day activities like going to class, you don’t need to purchase anything new or fancy. However, when it comes time to interview for internships and post-graduation jobs, you will need some solid professional clothing options. Toward the end of your college career, it may be wise to set aside a little bit of money each month to go toward your professional wardrobe.
Pro Tip: Consider checking the thrift store for discounted pieces. Some campuses also offer professional closets that students can visit to get a few pieces of business casual clothing.
Socializing and Entertainment
Let’s face it: socializing is a huge part of the college experience. Whether you’re going out for a bite to eat or heading to a movie with friends, socializing can come with a price tag. Take care to set aside a little bit of money so you aren’t relying on your credit card to have fun.
Pro Tip: There are always tons of activities going on around college campuses. Check your campus activity board for free things you can do alone or with friends.
Other
You might have another category of expenses than what is listed here. If it’s a necessity for your situation, include it in your budget!
Wants vs. Needs
A common issue first-time budgeters run into is knowing the difference between their wants and their needs.
Needs are things you can’t live without –food, water, clothing, housing, etc. Wants are the “nice-to-haves” – a new video game console, eating out rather than using your meal plan, etc. When determining your wants versus your needs, ask yourself “Can I live without this thing/expense? Is there a more affordable version of this thing I could substitute to save some money?”
Put Together the Budget.
Now it’s time to actually put the budget together.
You’ll want something to write on. We have a free printable budget sheet you can use, but a plain sheet of paper will work just fine. (If you prefer the digital route, check out this article for some budgeting apps.)
For the purposes of this example, we will assume you’re creating a monthly budget, but you can create budgets for other lengths of time as well.
Start with your needs – the things you physically can’t live without – like food and rent. Those are non-negotiables in your budget, and you should put money towards them first.
When allocating money to a category, think about what you normally spend on those items. Some categories will consistently cost the same amount, like your rent, but others (like groceries) will vary.
Look at previous account statements to see what you have historically spent and give yourself a sample amount from there. For example, if you normally spend around $100 at the grocery store every other week, that’s the amount you will want to write down. If you realize that amount doesn’t work for you after giving your budget a try, you can always adjust it.
Once you have your needs taken care of, you can layer in your wants with the money you have left over.
Pro Tip: Switch to a Student Spend* account with Spero and enjoy no overdraft fees. (Plus, members in good standing are eligible to apply for our $5,000 college scholarship!)
Know That There Is Help
Many campuses offer programs for students to help manage their money. Reach out to your advisor or other trusted university representative for information on resources that are available for you.
Spero Financial is also here to help. We offer free financial counseling sessions with our Certified Credit Union Financial Counselors. Visit https://spero.financial/make-your-appointment/ to book an appointment.
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
*Insured by NCUA. Membership required. Student Spend Checking accounts are limited to one each per primary account holder’s social security number and are not offered on accounts with any other checking account type. Student Spend checking accounts are limited to individuals under 24 years of age or those actively enrolled in college or trade school. Documentation to confirm enrollment, such as your student ID or class schedule, is required to verify continued eligibility for the account. Once you reach the age of 24 or can no longer provide adequate documentation to confirm you are actively enrolled in college or trade school, your account will be converted to a Simply Checking account, and a Simply Checking cost, as outlined on the Fee Schedule, will apply.
