Budgeting for College Students

Budgeting for College students is not just a good idea, but a true necessity. With the cost of housing, tuition, books, meal plans, insurance, gas, and other incidentals, the costs of going to college can get out of control. While the big bills get most of our attention, those small daily expediters can go unnoticed and can become real budget busters and help inflate those student loans.

Seemingly trivial daily spending habits can throw your college budget completely out of control. 

That quick snack on the go, that daily cup of coffee, that energy drink to get you going, all can add up to $5 or $6 bucks before you know it.    Let’s say you spend $4 a day, heck you can spend that on a Latte!   In three weeks you have spent $60 bucks, and that’s a grand a year.    Compound those spending over twenty years, and that’s $51,833.79!   All from a simple four-dollar-a-day habit!

College is stressful enough without adding to your debt spiral four dollars at a time.

We should make sure we spend the money we have intelligently. That’s where budgeting for college students comes into focus. It’s a good tool to see at a glance what we have coming in, what’s going out (and what that money is paying for) and if there’s anything left at the end of the month to have for those unexpected expenses.

Track Your Spending Daily.

Before we take a look at the power of a budgeting for college students, let’s take a moment to see what will happen if we don’t track our money. We may end up spending more than we have in a given month (or two, or three). Over time that can put us into some pretty hot water financially. We may also spend a lot more than we’d like to believe on things like gaming, movies, food, and even new clothes.

Having a budget gives us more control over where we want to really spend our money on.

Maybe that’s a new outfit and a night on the town, but maybe it isn’t. Wouldn’t it be nice to be able to make a sound choice? If you have to call mom and dad for more money, wouldn’t it be great to be able to account for where all the money went?

It Tracks Where Your Money Is Going

A budget is a tool you use to track your money. You write down your income each month and then write down everything you spend your money on.  You start with your recurring monthly bills like dorm or rent, car payments, utilities, etc., and what you have left over after all those bills are paid is money you have to live on each month.

Budgets Help You Identify Things You Waste Money On.

Having a record of your money all in front of you in black and white helps you identify things you’re wasting your money on. It makes you reconsider if you want to spend over $100 a month on your cell phone plan. Or how about that car that is sitting back at home you no longer drive most of the year? Go through your expenses and reevaluate if this is how you actually want to spend your money.

Budgets Allow You To Reward Yourself!

Saving any money or reducing your borrowing without a budget is very hard. We start the month with the best of intentions, but somehow, we find there just isn’t anything left at the end of the month, and that’s why budgeting for college student’s is so important. I was walking on campus last semester, and I over heard one student talking to another student how stressed out he was as he had already run out of money this month, I glanced at my iPhone to confirm it was indeed only the 7^th of the month.   This student had gone through his complete monthly budget during the first week of the month!

A Budget Gives You A Chance To Be More Responsible.

Find a way to set aside some money for savings at the beginning of the month, even if it’s just $5 or $10. Put it in the budget as a regular expense, just like you do with your other urgent bills. If you need to, open a separate bank account, so you’re not tempted to spend it.   Use this money to reward yourself at the end of the semester if you maintain your budget or reach your GPA goals.  You will find it easier to stick to a schedule and budget if you know you can look forward to a nice reward in the end.

Budgeting for College Students Will Help You Manage Your College Debt.                        

It has never been easier to rack up student debt.  Student loan debt has soared from $260 billion in 2004 to $1.4 trillion in 2017, and average student debt has skyrocketed from $18,650 to $38,000.  With the ever-increasing costs of a college education, it is extremely important you maintain a budget.  A budget will keep you on financial track, and help you make sure you’re not spending or borrowing more than you really must.

Budgeting For College Students and Life Beyond.

Budgeting in college will put you on the path to a life-time of financial well-being.  What if after you land that new job after graduation, you saved that $4 a day instead of spending on that latte?   Compound those savings over twenty years, and that’s $51,833.79 in your pocket!  All from a saving habit of four-dollar-a-day!   When you graduate and get that first real job, you will already be disciplined and have a clear financial vision for your future.