13 answers
Analisa
Student
Atglen, Pennsylvania
2
Questions
Updated
1675 views
What should your budget look like in college?
I am about to attend college and I'm not sure how strict I should be about spending money. I want to be responsible, but I still want to have fun. I know it varies from person to person but are there general guidelines to follow?
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13 answers
Corey King
Solution Architect
4
Answers
Falls Church, Virginia
Updated
Corey’s Answer
Being frank: there is no general numerical guideline.
But WHY that's true is an important part of helping anyone create that college budget. Each person's financial scenario is different, i.e. scholarships or out-of-pocket, external financial support, income from jobs, etc. Additionally, factors such as (but not limited to) personal responsibilities (e.g. childcare, car expenses, etc.) and geographic location (e.g. New York City is more expensive than Louisville, KY) play important roles.
The best advice I can provide is this:
1) Take the time necessary to know all of your expenses; e.g. family, school, personal, etc.
BONUS: Something I really wish I'd learned when I was younger was this: Always ensure your expenses include saving money.
2) Know all of your income sources; i.e. financial aid, monetary gifts, income from work, etc.
3) Next, do the simple math: "my total income - my total expenses = my remainder"
4) The next thing I encourage is to create a buffer; e.g. 20% of my remainder will go into "just in case" savings
You'll be surprised at the number of unplanned expenses that pop up during college. Books are always more expensive than anyone imagines, people forgot to budget for travel on the holidays, cars break down, etc.
I hope that this is helpful.
But WHY that's true is an important part of helping anyone create that college budget. Each person's financial scenario is different, i.e. scholarships or out-of-pocket, external financial support, income from jobs, etc. Additionally, factors such as (but not limited to) personal responsibilities (e.g. childcare, car expenses, etc.) and geographic location (e.g. New York City is more expensive than Louisville, KY) play important roles.
The best advice I can provide is this:
1) Take the time necessary to know all of your expenses; e.g. family, school, personal, etc.
BONUS: Something I really wish I'd learned when I was younger was this: Always ensure your expenses include saving money.
2) Know all of your income sources; i.e. financial aid, monetary gifts, income from work, etc.
3) Next, do the simple math: "my total income - my total expenses = my remainder"
4) The next thing I encourage is to create a buffer; e.g. 20% of my remainder will go into "just in case" savings
You'll be surprised at the number of unplanned expenses that pop up during college. Books are always more expensive than anyone imagines, people forgot to budget for travel on the holidays, cars break down, etc.
I hope that this is helpful.
Thank you so much this is helpful!
Analisa
Doc Frick
Career Coach and Mentor
1896
Answers
California, CA
Updated
Doc’s Answer
Analisa budgeting as a college student is more critical than ever, especially given the rising education costs. Depending on your unique situation, you're probably not swimming in cash right now between classes, extra-curriculars, and helping out at home. That's why it's crucial to get smart about budgeting what you do have. The upside? College life might actually give you a bit of a break with fewer bills. So, now's the perfect time to master managing your money.
STEP 1️⃣ COLLEGE BUDGET
First, you need to know how much money you're working with. This isn't just about that part-time job you've got; it's the financial picture.
• FAMILY CONTRIBUTIONS: If your parents or other family members are helping you out, add that to your total income.
• FINANCIAL AID: This includes scholarships, grants, and loans. (Remember, loans have to be paid back eventually).
• PART-TIME JOBS: Whether you're working in a coffee shop or freelancing online, this is probably your most regular source of income.
STEP 2️⃣ CATEGORIZE YOUR EXPENSES
Now, let's talk about where that money is going. You'll want to list out all your expenses and split them into two categories:
• NEEDS: These are your nonnegotiables. Think rent, tuition, groceries, and utilities.
• WANTS: This is the fun stuff—eating out, concerts, shopping sprees, you name it.
Knowing the difference between the two is key to not blowing your budget.
STEP 3️⃣ CRUNCH THE NUMBERS
Take your total monthly income and subtract your total monthly expenses. If you end up with a positive number, you're doing great! If it's negative, don't freak out—this is your wake-up call to cut back on some of those "wants" or find ways to boost your income.
STEP 4️⃣ BUDGET USING 50/30/20 RULE
Now your income and expenses are laid out, so what's next? It's time to make a budget that you can actually stick to. The 50/30/20 rule is a solid guideline:
• 50% NEEDS: Half of your income should cover the essentials like rent, food, and bills.
• 30% WANTS: This is your fun money, but keep it within limits.
• 20% SAVINGS: Whether saving for a rainy day or paying down a student loan, make this a habit.
TIPS FOR SAVING MONEY
PICK UP PART-TIME WORK
Working part time as a research assistant, tutor, barista, or other paid job while in college has benefits beyond adding to what's in your bank account. Depending on your financial situation, you may qualify for the Federal Work-Study Program, which can help you snag a job on campus.
CARRY YOUR STUDENT ID
Student IDs aren't just for getting access to campus buildings. Flashing it at stores, mass transit providers, museums, and even restaurants could get you discounts. Your college may have a list of local and even national businesses that offer its students special pricing. And at any store, it never hurts to ask at checkout or entry if there are student discounts too.
UTILIZE SCHOOL'S AMENITIES
Make sure you're getting the most out of your activities fee by using campus resources when you can. That could mean going to the school gym and health centers, which may be available for free or at a reduced price. Also check out whether there are cultural or entertainment events subsidized by your school.
FILE FOR FAFSA EVERY YEAR
The Free Application for Federal Student Aid (FAFSA) determines what need-based scholarships, grants, and federal student loans you're eligible for. Scholarships and grants (aka the kind of funding that doesn't need to be repaid) aren't just for incoming first-year students. Your school and even private scholarship-granting organizations often reserve some of their cash for returning students.
Hope this was helpful Analisa
STEP 1️⃣ COLLEGE BUDGET
First, you need to know how much money you're working with. This isn't just about that part-time job you've got; it's the financial picture.
• FAMILY CONTRIBUTIONS: If your parents or other family members are helping you out, add that to your total income.
• FINANCIAL AID: This includes scholarships, grants, and loans. (Remember, loans have to be paid back eventually).
• PART-TIME JOBS: Whether you're working in a coffee shop or freelancing online, this is probably your most regular source of income.
STEP 2️⃣ CATEGORIZE YOUR EXPENSES
Now, let's talk about where that money is going. You'll want to list out all your expenses and split them into two categories:
• NEEDS: These are your nonnegotiables. Think rent, tuition, groceries, and utilities.
• WANTS: This is the fun stuff—eating out, concerts, shopping sprees, you name it.
Knowing the difference between the two is key to not blowing your budget.
STEP 3️⃣ CRUNCH THE NUMBERS
Take your total monthly income and subtract your total monthly expenses. If you end up with a positive number, you're doing great! If it's negative, don't freak out—this is your wake-up call to cut back on some of those "wants" or find ways to boost your income.
STEP 4️⃣ BUDGET USING 50/30/20 RULE
Now your income and expenses are laid out, so what's next? It's time to make a budget that you can actually stick to. The 50/30/20 rule is a solid guideline:
• 50% NEEDS: Half of your income should cover the essentials like rent, food, and bills.
• 30% WANTS: This is your fun money, but keep it within limits.
• 20% SAVINGS: Whether saving for a rainy day or paying down a student loan, make this a habit.
TIPS FOR SAVING MONEY
PICK UP PART-TIME WORK
Working part time as a research assistant, tutor, barista, or other paid job while in college has benefits beyond adding to what's in your bank account. Depending on your financial situation, you may qualify for the Federal Work-Study Program, which can help you snag a job on campus.
CARRY YOUR STUDENT ID
Student IDs aren't just for getting access to campus buildings. Flashing it at stores, mass transit providers, museums, and even restaurants could get you discounts. Your college may have a list of local and even national businesses that offer its students special pricing. And at any store, it never hurts to ask at checkout or entry if there are student discounts too.
UTILIZE SCHOOL'S AMENITIES
Make sure you're getting the most out of your activities fee by using campus resources when you can. That could mean going to the school gym and health centers, which may be available for free or at a reduced price. Also check out whether there are cultural or entertainment events subsidized by your school.
FILE FOR FAFSA EVERY YEAR
The Free Application for Federal Student Aid (FAFSA) determines what need-based scholarships, grants, and federal student loans you're eligible for. Scholarships and grants (aka the kind of funding that doesn't need to be repaid) aren't just for incoming first-year students. Your school and even private scholarship-granting organizations often reserve some of their cash for returning students.
Hope this was helpful Analisa
Thank you for the advice! I appreciate the details and specifics. This was helpful!
Analisa
Rebecca Tang
Banking
2132
Answers
Hong Kong
Updated
Rebecca’s Answer
Thank you for your question. This is more related to your financial management.
Firstly, you need to distinguish on the expense on what you need and what you want.
What you need - Expense that is vital to you, e.g. College fees, Meals, Transport, etc.
What you want - Expense nice to have, e.g. Jewelry, buy trendy sneakers, etc.
You can consider to divide your income / pocket monies into 3 portions :
1. Expenses what you need
2. Savings
3. Can consider to use any remining on what you want
Hope this helps! Good Luck!
Firstly, you need to distinguish on the expense on what you need and what you want.
What you need - Expense that is vital to you, e.g. College fees, Meals, Transport, etc.
What you want - Expense nice to have, e.g. Jewelry, buy trendy sneakers, etc.
You can consider to divide your income / pocket monies into 3 portions :
1. Expenses what you need
2. Savings
3. Can consider to use any remining on what you want
Hope this helps! Good Luck!
This is very helpful! Thank you so much!
Analisa
Emily Barrowdale
Sales Representative
4
Answers
Gilbert, Arizona
Updated
Emily’s Answer
Hi Analisa!
If you are already going into college with the idea that you need to be conscious about it then you are off to a great start!
I would say use money manager apps like RocketMoney or other similar apps. This really helped me track where my spending was going, what I have that i need to prepare for (reoccurring bills, memberships, etc...).
Know what you have coming in first! Take that number and take away those things that are non negotiable (rent, utilities, phone bills, books, etc....) Whatever is left, I take 20% and put it savings automatically for a rainy day fun. I know this doesnt sound fun but I did a lot of eating at home during college.... it was more cost savings for me. If my friends wanted to go to dinner, I would eat something at home then i could grab a drink or snack with them while they are there! To save on going out, I would invite all of my friends over instead of going out!
BUT! On another note, do not limit your experiences based on wanting to have a tight budget, if it is once and a while, GO and have fun! Money will always be there but sometimes experiences arent.
I hope this helped!
If you are already going into college with the idea that you need to be conscious about it then you are off to a great start!
I would say use money manager apps like RocketMoney or other similar apps. This really helped me track where my spending was going, what I have that i need to prepare for (reoccurring bills, memberships, etc...).
Know what you have coming in first! Take that number and take away those things that are non negotiable (rent, utilities, phone bills, books, etc....) Whatever is left, I take 20% and put it savings automatically for a rainy day fun. I know this doesnt sound fun but I did a lot of eating at home during college.... it was more cost savings for me. If my friends wanted to go to dinner, I would eat something at home then i could grab a drink or snack with them while they are there! To save on going out, I would invite all of my friends over instead of going out!
BUT! On another note, do not limit your experiences based on wanting to have a tight budget, if it is once and a while, GO and have fun! Money will always be there but sometimes experiences arent.
I hope this helped!
Thanks a lot! Very helpful! I'm looking into those apps now :)
Analisa
Dede Ofosu Dorte
Software sales
5
Answers
Pelham Manor, NY
Updated
Dede’s Answer
Congratulations on reaching this milestone! It's fantastic that you're already thinking about finances and how to manage them wisely. You're definitely on the right path.
When I was in college in West Africa, budgeting was essential. Although there's no one-size-fits-all approach, here's a simple plan that might help you with budgeting during college:
First, figure out your income. Will you work part-time, or will your parents support you? Knowing your income, whether weekly or monthly, helps you plan realistically.
Next, track your expenses. This will help you decide where to spend your money. Group your spending into categories and keep an eye on them.
Try using the 20/30/50 rule: save 20%, use 30% for fun, and spend 50% on essentials like food. I hope this helps, and I wish you the best college experience!
When I was in college in West Africa, budgeting was essential. Although there's no one-size-fits-all approach, here's a simple plan that might help you with budgeting during college:
First, figure out your income. Will you work part-time, or will your parents support you? Knowing your income, whether weekly or monthly, helps you plan realistically.
Next, track your expenses. This will help you decide where to spend your money. Group your spending into categories and keep an eye on them.
Try using the 20/30/50 rule: save 20%, use 30% for fun, and spend 50% on essentials like food. I hope this helps, and I wish you the best college experience!
Thanks a lot for the advice it was very helpful!
Analisa
Peter Deal
Financial analyst
1
Answer
Honey Brook, Pennsylvania
Updated
Peter’s Answer
It's important to set goals, including regarding your spending, but also your socializing. It would be best to have some sort of balance that works for you, because it would be a shame to run out of cash because you had too much fun, but there is no need to be a recluse to save every penny.
It's not an either/or world. It's an "and" world. How do be financially responsible AND enjoy the college experience?
Carefully consider what you really get with every dollar you spend, and what it costs in the long run. For example, the approximate present value of a daily coffee from a coffee shop for 4 years is $7,058, assuming a 3% discount rate and an average daily coffee cost of $5.46. Is the pleasure from coffee really worth that much? Coffee shops are so much fun with friends... consider the balance. You may have to do a lot of work to pay for the coffee shop lifestyle.
Your goals will lead to your plans. And if you plan to make an investment in your relationships, could you do it in a way that doesn't involve spending money? Could you be the one who leads your friends in activities that don't cost much?
There might be some unique experiences that you could set goals for. Is your school known for something unique? Are there some amazing things you can do there that would be worth the money, or don't cost much?
Set aside money for the things you know you'll need, like tuition, etc., and consider a monthly budget for spending on recreation. Even to the point of paying cash for recreation from an envelope that has the month's recreation budget, and when it's empty, you don't replenish it until the next month.
Something else to consider is why are you in college? People generally go for an education so they can support themselves and a family. I think most people establish lifelong friendships there also. If your goal is to grow your skills and build relationships, then how can you merge the education, relationships, and recreation so they help you work towards your goals?
It's not an either/or world. It's an "and" world. How do be financially responsible AND enjoy the college experience?
Carefully consider what you really get with every dollar you spend, and what it costs in the long run. For example, the approximate present value of a daily coffee from a coffee shop for 4 years is $7,058, assuming a 3% discount rate and an average daily coffee cost of $5.46. Is the pleasure from coffee really worth that much? Coffee shops are so much fun with friends... consider the balance. You may have to do a lot of work to pay for the coffee shop lifestyle.
Your goals will lead to your plans. And if you plan to make an investment in your relationships, could you do it in a way that doesn't involve spending money? Could you be the one who leads your friends in activities that don't cost much?
There might be some unique experiences that you could set goals for. Is your school known for something unique? Are there some amazing things you can do there that would be worth the money, or don't cost much?
Set aside money for the things you know you'll need, like tuition, etc., and consider a monthly budget for spending on recreation. Even to the point of paying cash for recreation from an envelope that has the month's recreation budget, and when it's empty, you don't replenish it until the next month.
Something else to consider is why are you in college? People generally go for an education so they can support themselves and a family. I think most people establish lifelong friendships there also. If your goal is to grow your skills and build relationships, then how can you merge the education, relationships, and recreation so they help you work towards your goals?
Thanks for the advice! Definitely gave me a new perspective. Appreciate the help!
Analisa
Kurt Bruckmann Jr.
Technology Sales
3
Answers
Rumson, New Jersey
Updated
Kurt’s Answer
Great question, Analisa! When I was in college, I used an app called True Bill, which basically breaks down all of your expenses. I found this very helpful in tracking categories like school supplies, food, textbooks, and, of course, fun. You are only in college for a few years, so do not limit your experiences. You can always have fun and also save some money!
Thanks you so much for the advice! You saved me from lots of stress:)
Analisa
Emma Galaz
Sales Development Manager
2
Answers
Austin, Texas
Updated
Emma’s Answer
Really good question, Analisa! Kudos to you too for your preparation! There are a ton of apps but you can always use a google sheet to track categories of budget (food & essentials, school supplies, fun, etc) per month. My tip for you is to give yourself some grace in your first month too - it's a new routine, you are learning what your spending really looks like in this new season of life.
Thank you for the advice I appreciate it!
Analisa
Patrick Branch
Technical Program Manager
2
Answers
Tucson, Arizona
Updated
Patrick’s Answer
To create a budget, start by dividing your income into categories. Aim for 35% on rent or housing, 30% on food and necessities, 15-20% on savings or debt repayment, and 15% on wants or fun. If you're a student, you might need to adjust these numbers to 50% for housing, 35% for food, 10% for wants, and 5% for savings, especially if unexpected expenses like car repairs come up.
Where you live affects your budget, especially housing costs. Try to reduce the percentage of income spent on housing to get closer to ideal ratios. This can make a big difference in your overall budget.
Though, as a student, I remember it more like this: 50% for housing, 35% for food and necessities, 10% for wants (MAX!), and 5% attempting to save for the needed auto repairs I always seemed to have!
1. investigate possible future housing costs/needs
2. track your food receipts (and all fun) for at least a month to see how much you ACTUALLY spend
3. adjust your budgets to help fit your current, or sadly, NEEDED lifestyle to make it self-sustaining
4. don't let your wants derail your needs (i.e. live within your means ALWAYS, as you'll always have to pay if you don't!)
Where you live affects your budget, especially housing costs. Try to reduce the percentage of income spent on housing to get closer to ideal ratios. This can make a big difference in your overall budget.
Though, as a student, I remember it more like this: 50% for housing, 35% for food and necessities, 10% for wants (MAX!), and 5% attempting to save for the needed auto repairs I always seemed to have!
Patrick recommends the following next steps:
Thanks so much! I needed that this is great!
Analisa
shiv patel
Consulting
7
Answers
Edison, New Jersey
Updated
shiv’s Answer
Think about what's important to you and what you need. Then, use Excel, which is a useful skill for the future, to plan your daily meals and social activities. This will help you make a budget. Also, make sure to have some money set aside for emergencies.
Joseph Campomizzi
Senior Manufacturing Engineer/Mechanical Engineer
6
Answers
Little Falls, New Jersey
Updated
Joseph’s Answer
Hi Analisa,
When I was in college, I aimed to accomplish 3 things with my budget:
-Maintain an Emergency Fund I could dip into in case something happened like my car broke down.
-Cover my Bills
-Have enough left over to go out and enjoy myself
How I accomplished this:
-I worked extra hours in the summer, then I was able to work less during the year and focus on my studies.
-I became a Resident Assistant in the dorms. This role provides free on campus housing to its employees, which saved me a ton of money throughout college.
-I took money directly from each pay check to set aside for my bills so I wouldn't accidently overspend.
With all that being said, make sure to prioritize having fun!! College is a very unique time in life that should be enjoyed to its fullest.
Best of Luck!!
Joey
When I was in college, I aimed to accomplish 3 things with my budget:
-Maintain an Emergency Fund I could dip into in case something happened like my car broke down.
-Cover my Bills
-Have enough left over to go out and enjoy myself
How I accomplished this:
-I worked extra hours in the summer, then I was able to work less during the year and focus on my studies.
-I became a Resident Assistant in the dorms. This role provides free on campus housing to its employees, which saved me a ton of money throughout college.
-I took money directly from each pay check to set aside for my bills so I wouldn't accidently overspend.
With all that being said, make sure to prioritize having fun!! College is a very unique time in life that should be enjoyed to its fullest.
Best of Luck!!
Joey
Anthony Lim
Analyst
11
Answers
Updated
Anthony’s Answer
Hi! College can be a big change for anyone hitting this new milestone. For beginners, it is important to factor in your needs (tuition, housing + food) and your wants during college.
As for loans, this money must be repaid back so adding it into your budget can help you continue plowing on the principal + interest amount before you even graduate. A budget is necessary but if you can fit in any income streams during university, it would give you comfort for rainy and unexpected days.
As for loans, this money must be repaid back so adding it into your budget can help you continue plowing on the principal + interest amount before you even graduate. A budget is necessary but if you can fit in any income streams during university, it would give you comfort for rainy and unexpected days.
Michael Rovito
Financial Planner
8
Answers
New York, New York
Updated
Michael’s Answer
Hi,
You've gotten some great advice here. As you work on your budget, consider focusing on your personal savings and investments. The sooner you start, the more your money can grow over time.
You've gotten some great advice here. As you work on your budget, consider focusing on your personal savings and investments. The sooner you start, the more your money can grow over time.