You’re now in college, and you’re probably more familiar with the word budgeting than most adults are at this point in their lives. Your parents have given you a certain amount of money for your expenses, and you know that if you don’t use it all up or spend it wisely, you’ll be broke until your next allowance. When it comes to budgeting as a college student, there are some things you need to know about budgeting so that you can make the best decisions when it comes to spending and saving money.
Think about where your money goes
You’re spending your money on a whole host of things. And it may seem overwhelming to determine how to budget when you don’t know what you spend. The best way to figure out where your money goes is to write down every single expense for a month. Keep track of everything from rent, food, and transportation (and then some) so that you can get an idea of how much you’re spending in each category. Then, think about ways that you can streamline or optimize. Can your cellphone bill be lower? Can groceries be cheaper? What little changes can make a big difference in total expenses?
Cut back on expenses you don’t need
This is one of those easier said than done ideas. After all, there are so many things that students like to spend money on –– and it’s easy to justify doing so when you’re living in a fairly inexpensive dorm room, eating cheaply at dining halls, or spending freely on weekends. But if you want to figure out how to budget in college, then being aware of what you spend your money on is key (and doing so will also help make sure you don’t get yourself into financial trouble). Many students find success by cutting back on expenses they don’t need (such as big nights out) and instead focusing their spending on necessities like food and books.
Look for ways to make extra money
If you’re going to be in school for a few years, it only makes sense to learn how to budget properly. You’ll quickly realize that your income has big gaps (like between semesters or during summer months) when you need to find ways to pay your rent and bills. Thankfully, there are several great ways to make extra money as a college student — and some of them are really easy. For example, you can use sites like TaskRabbit or Fiverr and earn extra cash doing small jobs such as cleaning houses or proofreading essays and articles. Both offer flexible scheduling, so it’s pretty easy to pick up some weekend work here and there. We have also made some articles from which, you can make extra money.
Avoid temptation by using cash only
When it comes to saving money, you might not realize how easy it is to fall prey to sunk costs. For example, say you spent $10 on your favorite shirt at a thrift store. But after trying it on and getting home, you realize it doesn't fit quite right. What do you do? If you have a credit card, there's a good chance that an extra $10 will end up back in your pocket—as long as it's within your grace period. The thing is: If that same situation had happened with cash—you'd have been more likely to make a sound decision about whether or not to return it based solely on its fit.
Prioritize and learn the difference between needs and wants
The important step to budgeting as a college student is prioritizing your needs versus your wants. First, list out everything you need to pay for in a month (rent, utilities, internet fees, etc.) and write down how much that costs you per month. Then take all of your other expenditures—things like eating out or buying clothes—and split them up into categories: groceries, transportation costs, entertainment expenses, and so on. Once you have everything categorized like that, see which categories are under budget each month and which ones exceed it. Those overbudgeted categories should be re-prioritized so they become less important to your life or simply eliminated altogether.
Track your expenses using an app like Mint
Mint is a free app that you can use to track your spending, credit card bills, and debts in one place. Not only does it help you track your finances, but it also helps you set budgets and send alerts when unexpected costs pop up. Using Mint will help you keep track of all of your expenses—from groceries to going out with friends—so you don’t spend more than you have. You might be surprised by how much money you save when, as a college student, there are so many things pulling at your wallet!
Conclusion
That’s how to budget in college. It might not be easy, but that doesn’t mean it can’t be done. It all starts with a little organization and then continues with purposeful choices each day. Make sure you think about what is important to you and where your money is going. Start by creating a spending plan for yourself, be realistic about your priorities, and look at your financial future from several different angles as you start planning for life after college!
