Keeping a budget in college is important for stretching your college money and for dealing with post-college debt.
College Income
Most college students are on a fixed income with a set amount from loans or college savings to use as a source for college money. While some college students supplement loans and college savings through a college work-study program, working hours are limited and not much money is left for discretionary spending.
With college money being tight, keeping a budget in college keeps "fun money" separate from tuition and grocery money. Budgeting your money in college means you will need to take out less in student loans, and will have less debt to pay off once you graduate.
College Expenses
If you are new to the college scene, you have no idea what your living expenses will be so you need to come up with an estimate of how you will be spending college money.
The student affairs office on your college campus can give you an idea of what expenses to expect in college from data gathered from previous years. Your college expenses will include:
- Tuition, books and fees
- Dorm fees or rent and utilities
- Groceries or meal plans
- Supplies for classes
- Transportation (bus or personal vehicle)
- Personal items (shampoo, toothpaste, soap, etc.)
- Laundry costs like detergent and quarters for the washer and dryer
- Entertainment (you need some relaxation but don't go overboard)
- Medical costs (check with your college for free or low cost options)
How do your college income and expenses pan out? If you have enough money to cover your expenses, create a monthly budget by listing monthly expenses and allocating monthly income against those expenses. You can create a budget on paper or use a spreadsheet template for a convenient college budget plan. Personal finance software like Quicken includes a budgeting feature that is great for budget planning and tracking expenses as well.
Cutting College Expenses
When college money from financial aid and other sources just barely covers your college costs or does not cover these expense entirely, you need to look at ways to cut back on spending.
Live at home. If your college is close enough to commute, do so. You will have the cost of gas, maintenance and insurance on a vehicle, but you will cut the cost of room and board or rent and food costs will be lower. Do not sponge off of your parents! You are an adult, so pay something to cover food and rent and work out a plan with your parents.
Cut entertainment costs. College students need a break but when college money runs short, this is the first place you can cut costs. The obvious big college money wasters are bars. Either cut back on how often you go out with friends or cut back on the number of drinks you consume and I promise you will save money and feel better most mornings.
Other college entertainment ideas:
- College campuses offer entertainment for students, so find out what your college has available and give it a try.
- Go to the library and take out a movie or rent a movie and invite your friends over.
- Pick up a copy of the local newspaper and find out about free local entertainment like concerts, art shows and football or other sporting events.
Shop around for best prices. It almost goes without saying, but be sure to shop around for the best prices on supplies, clothing and groceries. Buy few junk food items to avoid wasting money and the calories that allow for the legendary "Freshman 15". If there is an Aldi store nearby be sure to shop there for great prices on quality grocery items. WalMart is well-known for having great prices as well. Keeping a price book will help you to stay on top of price comparisons.
