5 Realistic Budgeting Tips for College Students

Fortunately, with the right system in place it’s easy to take charge of your monthly budget so you don’t accidentally end up with an unpleasant surprise or have to make an awkward phone call home.

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There are money management apps available to help you create a budget, or you can do it yourself by making a simple spreadsheet. You can even start with a college budget spreadsheet template with customizable categories and formulas already in place.

Any system you create should track income and categorize expenses, so you have a clear picture of where your money is going and what you need to adjust in order to meet your goals. Here’s how to get started:

1. Calculate your total net monthly income. This is the amount of income after taxes you actually get to take home. If your employer withholds taxes from your paycheck, your take home pay is your net income. Total up the amount of money you make from your job, financial aid, and any other odd jobs, regular gifts, or side hustles.

2. List all your expenses—yearly, quarterly, and monthly. Typical expenses for college students are tuition and student fees, school supplies, rent or room and board, food, phone, internet, utilities, transportation costs (bus or train fare, gas, car maintenance), insurance (health, vision, dental, auto), loan payments, fitness memberships, and miscellaneous for entertainment, gifts, and travel. Any regular deposits you make into your savings account should go on the list, too. That way you’ll remember to set money aside for future goals or predictable expenses that don’t recur monthly, like an annual parking pass. (HINT: Use a handy online list or to-do list software to track everything the easy way!)

3. Organize your expenses into fixed and variable categories. Fixed expenses are predictable, regular, and recurring, like your rent and car insurance. Variable expenses are things like entertainment, your electric bill, or anything else that varies from one month to the next.

4. Compare your income and expenses, and make adjustments. If your expenses are higher or dangerously close to your income, look at your list of fixed and variable expenses and see what you can adjust. Fixed expenses tend to be harder to negotiate—or they require a big change like moving to a smaller apartment or taking on another roommate. You probably have more flexibility with your variable expenses, so look for creative ways to cut these down. You’ll come away from this step with a list that includes things like asking about student discounts, seeing if you can switch to a cheaper cell phone plan, paying off high interest loans first, buying used textbooks and selling yours, and looking for free events. If your income is higher than your expenses, lucky you! Now you know how much extra you can put into your savings account each month.

5. Continue to track your finances. Now that you have created a basic budget, track your earning, spending, and saving in an app, a simple spreadsheet, or a robust system—whichever format you’re most likely to use consistently. Set a reminder once a month to review your finances and make any necessary adjustments.

Remember, no one gets this right on the first try. Think of budgeting as an ongoing process. It’s an opportunity to learn more about where your money is going and make proactive decisions that will set you up for success for years to come.