The Student’s Guide to Budgeting in College
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Your spending habits — what you buy and how you choose to pay for those things — impact not only your current financial situation but also your future finances. This includes what types of loans you may qualify for and your ability to meet emergency expenses.
By becoming financially literate, you can create and sustain a college budget that helps you accomplish key goals.
This in-depth guide offers essential tips for putting together a college student budget. It covers money-saving strategies and provides a college budget example.
Why Is a College Student Budget Important?
Even if you’re attending an affordable college, tuition and fees can still be expensive. According to the College Board, the average debt level of four-year college graduates in 2020-21 who took out student loans was $29,400. Additionally, in a 2024 Sallie Mae report, the average amount of money students borrowed through credit cards was $2,268.
Altogether, students who borrow money to help pay for bachelor’s degrees owe around $31,000. Combined with the fact we’re in a high-interest environment, this amount of debt can take years to pay off. It can also hinder personal growth and limit your professional opportunities.
Fortunately, students can greatly reduce this potential financial strain by learning to budget with careful regard to their needs, limitations, and goals.
How to Budget in College: 4-Step Guide
Follow the steps below to learn how to budget as a college student and save money.
Step 1: Break Down Your Total Income
The first step to making an effective college student budget is breaking down your income. Your income each term may be influenced by the following factors, according to the Federal Student Aid Office:
- Financial contributions from family members put toward your educational expenses
- Financial aid that you can apply toward tuition and fees, such as scholarships, grants, and student loans
- Refunds you receive from your financial aid office
- Recurring funds that you earn each month, such as pay from a part-time job or federal work-study job or funding from other sources
- The number of hours you work per week
If you accepted more loans, grants, or college scholarships than you needed to cover tuition, room and board, and facilities fees, your school’s financial aid office should give you a refund for the excess amount, usually in the form of direct deposit or a check.
You can save refunds in your bank account or apply them toward textbooks and other education-related expenses. Check your student bill to make sure everything has been paid for before you spend any refund money.
Step 2: Assess and Categorize Your Expenses
To assess your financial situation, log in to your bank or credit union’s website. Here, you can review your spending and earnings over the past month.
Referring to this statement, you can then make a list of all the things you spend money on in a typical month and the average cost of each item. Fixed expenses are necessities with the same prices every month. Variable expenses are necessities or wants with prices that vary month to month. Make sure you categorize these expenses, tagging everything as either a “necessity” or a “want.”
For example, a daily cup of coffee from Starbucks would be considered a want, whereas a 30-day supply of a prescription medicine you take would be considered a need.
Step 3: Crunch the Numbers
Now that you’ve organized your expenses, it’s time to crunch the numbers. Start by adding all your expenses together. Then, subtract that number from your monthly income.
If the final number you get is negative, that means that you’re spending more money than you make each month. If the number is positive, you have extra money to spend or put toward your savings. Building an emergency fund — a stash of money put aside to cover unexpected or emergency situations, such as medical bills — is especially important if you can. Many students keep emergency funds in their savings accounts.
Step 4: Create a College Student Budget
Now that you’ve calculated all the numbers, look through your expenses to see what items you can adjust or cut from your list.
For instance, if you’re spending $50 a month at the movie theater and you’re spending far more than you earn, consider cutting back on this “want” to balance your budget. Many people use the 50/30/20 rule, which calls for putting 50% of your total after-tax income toward needs, 30% toward wants, and 20% toward savings and other financial goals.
This step takes the longest, but getting your finances under control with a college student budget is worth the effort.
College Budget Example
In this section, we provide a college budget example for a student attending an in-state, four-year university in Georgia. You can use our budgeting worksheet for college students to create your own budget.
The following student’s parents cover their cell phone bill, medical expenses, and health insurance (except prescriptions). They also provide a semester allowance. This student doesn’t have a savings account or a credit card, shares the expenses of a three-bedroom house near campus, and works part time as a server at a local restaurant.
| Per Month | Per Semester | Per Academic Year | |
|---|---|---|---|
| Job | $1,400 | $6,300 | $12,600 |
| Family Contribution | $111 | $500 | $1,000 |
| Grants/Scholarships | $556 | $2,500 | $5,000 |
| Loans | $778 | $3,500 | $7,000 |
| Savings | $0 | $0 | $0 |
| Misc. Income | $33 | $150 | $300 |
| Total Income | $2,878 | $12,950 | $25,900 |
| Per Month | Per Semester | Per Academic Year | |
|---|---|---|---|
| Tuition and Fees | $1,111 | $5,000 | $10,000 |
| Rent/Housing | $500 | $2,250 | $4,500 |
| Utilities | $200 | $900 | $1,800 |
| Cable/Internet | $35 | $158 | $315 |
| Laundry | $0 | $0 | $0 |
| Groceries/Meal Plan | $150 | $675 | $1,350 |
| Car Payment | $150 | $675 | $1,350 |
| Car Insurance and Registration | $200 | $900 | $1,800 |
| Gas/Transportation | $40 | $180 | $360 |
| Car Servicing | $22 | $99 | $198 |
| Monthly Parking | $0 | $0 | $0 |
| Credit Card Payments | $0 | $0 | $0 |
| Cell Phone Plan | $0 | $0 | $0 |
| Books and Supplies | $44 | $200 | $400 |
| Prescriptions and Medical Expenses | $15 | $68 | $135 |
| Other | $0 | $0 | $0 |
| Total Fixed Expenses | $2,467 | $11,105 | $22,208 |
| Per Month | Per Semester | Per Academic Year | |
|---|---|---|---|
| Eating Out | $50 | $225 | $450 |
| Entertainment | $100 | $450 | $900 |
| Clothing | $50 | $225 | $450 |
| Cabs/Rideshare | $20 | $90 | $180 |
| Gym/Hobbies | $50 | $225 | $450 |
| Personal Grooming | $20 | $90 | $180 |
| Other | $20 | $90 | $180 |
| Total Variable Expenses | $310 | $1,395 | $2,790 |
| Per Month | Per Semester | Per Academic Year | |
|---|---|---|---|
| Total Income | $2,878 | $12,950 | $25,900 |
| Total Expenses | $2,777 | $12,500 | $24,998 |
| Difference (Income – Expenses)* | $100 | $450 | $902 |
What Tools Can You Use to Create a College Student Budget?
Tracking and managing your expenses through an app, a computer program, or a bank service can simplify the budgeting process and reduce the likelihood of mistakes in calculations.
Microsoft Excel is arguably one of the best tools students can use to learn how to stick to a college student budget. This software program offers budgeting templates, including a template specifically for college students. All are free to use and can be saved directly on your computer.
Alternatively, you may prefer Google Sheets, a free web-based spreadsheet application similar to Excel.
Another option is to rely on a money-saving app. Some of the best budgeting apps for college students include Mint, You Need a Budget, and EveryDollar.
Many financial institutions also provide account-holders with budgeting tools that are automatically populated with your balance and spending habits. These tools are usually free to use and integrated with an institution’s website or online portal.
Regardless of your preference, you should use some sort of tool to help organize your college budget, especially if you’re new to budgeting. Staying organized is key to maintaining a balanced budget.
6 Tips for Saving Money and Budgeting in College
It’s never too early to start saving. Here are some tips to help you develop savvy saving habits outside of attending an affordable college.
- 1
Avoid Paying Full Price for Textbooks
BestColleges previously reported that first-year students spend on average $1,212 to cover the cost of books and supplies. You can save money on textbooks by buying them from other students. You can also consider renting them, prioritizing e-books over hard copies, and using websites like Amazon, Chegg, AbeBooks, and BookFinder.com. - 2
Cook for Yourself
College meal plans cost around $4,500 per academic year, which is more than the $3,990 a single person would otherwise spend on food. By buying your own groceries, you can cut food costs and improve your diet with healthy, home-cooked meals. - 3
Embrace Communal Living
College allows you to meet diverse people and form long-lasting relationships. On top of these social benefits, you can save money on dorm and off-campus accommodations by living with friends. Sharing an apartment with other people also lets you pool resources like transportation and groceries. - 4
Shop at Thrift Stores
Thrift stores offer a convenient and low-cost way to buy clothes, furniture, and small appliances while also promoting sustainable living. Additionally, many thrift stores — including Goodwill — offer student discounts to help you save even more money. - 5
Use Student Discounts
To support frugal college students and develop long-lasting consumer relationships, many businesses offer student discounts on their products and services. Websites like RetailMeNot compile comprehensive lists of student discounts on items such as clothing, toiletries, computer software, food, media subscriptions, and airfare. - 6
Take Advantage of Campus Resources and Events
To alleviate students’ financial pressure and cultivate a sense of community, many colleges and universities provide free public transportation through on-campus shuttles, off-campus buses, and bike rental services. Some colleges even offer free laptops. You can also consult your school’s event calendar regularly for details about free food, concerts, movie nights, and networking opportunities.
Frequently Asked Questions About Budgeting in College
College Board data shows that students who spend moderately should prepare a 12-month budget of approximately $35,190. An acceptable lower budget would be around $23,580 per year. This number can act as a guideline, but remember that your budget must ultimately reflect your location, your personal lifestyle, and your individual financial needs.
Students living in high-cost of living areas like San Francisco, San Diego, and Honolulu will generally need higher annual budgets for living expenses.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.
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