Financial Aid

BUDGETING FOR COLLEGE STUDENTS

Heading off to college can be an exciting time. Finally, finally, you are turning the page on one era of your life and venturing off into another. But there is a lot of change in being a new student, some of it good and some of it more challenging.

First, of course, there is the excitement of meeting new people, finding out what you are passionate about, and the independence that comes with being on your own. But along with that independence comes a lot of responsibilities that may be new to you. One of the things you might have to start managing yourself is your finances. For many college students, this will be the first time dealing with rent, bills, groceries, and all sorts of other expenses that have not cropped up in the past. This might be overwhelming if you have not had to handle any of these things before. But do not panic! There are plenty of college budgeting tips out there to help. So, how can you budget to save money and cut expenses? One of the best ways to manage this is to put together a realistic budget specifically designed for college students. For example, your budget should track your rent, utilities, food, transportation, school supplies, and more. Budgeting for college students is not always easy, so let us look at some critical components to learn more.

What College Students Need to Consider in a Budget

When you first start putting together your budget, you will want to do your best to predict certain expenses like your cost of living, transportation, the cost of textbooks, and more. You can start calculating big portions of your cost of living by starting with your rent and utilities. While there may be some variance in certain utility bills, things like your rent, Internet bill, and phone bill will stay static throughout the year, so you can start incorporating these costs into your budget ahead of time. Specific bills like electricity and water might change a bit more from month to month, but after two or three months, you will likely have a better idea of the general cost of these bills.

Typical College Student Expenditures

There are several different expenses that you may have to consider as a college student. Let us look at some of the biggest ones.

1. Rent and Utilities

When it comes time to start looking into what living arrangements are out there for you, the key is to weigh all the options in front of you. You will need to start by getting an idea of the cost of rent around your school and then comparing this to the cost of living on campus (assuming that is an option available to you). Whether you end up living in a house/apartment or staying on campus, your living arrangements will likely end up being one of your most significant expenses. Not only will you have to deal with the cost of rent, but you will also need to consider the cost of utilities. This can include things like water, gas, electricity, internet, and cable. You generally will not have to worry about these things if you live in a dorm on campus, but you will need to account for them when you are putting together a realistic budget if you are out there on your own. One thing that may help you cut back on all these expenses is getting some roommates to share these costs. This way, you will be able to split the costs of rent and utilities instead of shouldering all these things on your own. Whether you have roommates or not, you will want to shop around for the best deals when setting up your utilities. Get quotes from different companies and look out for any student deals that may be going on. You will also want to evaluate your needs to make sure you are not spending money on things you do not need.

2. Food and Transportation

Another big area to consider is the cost of food. If you are living on campus, you may be paying for a meal plan through your school. But if not, you are going to have to pay close attention to your food costs and look for ways to keep them low. This starts with being smart at the grocery store and cooking at home as much as possible. You will want to make sure you put together a meal plan, make a shopping list, and stick to that list. To help you save on groceries, you should also: • Avoid shopping when hungry • Plan to have leftovers

• Choose generic brands • Buy produce that is in season • Buy meat sporadically Another considerable expense, particularly for those living far from campus, is the cost of transportation. While some people may be okay getting around on foot, for the most part, you may need to drive if you are looking at a long commute. Whether you buy or lease a car, you will need to incorporate the cost of driving into your budget. Factor in the price of gas, insurance, regular maintenance, and any repairs that may come up along the way.

3. Textbooks and School Supplies

As crucial as your textbooks will be, they do not typically come cheap. While considering these costs is an essential part of budgeting for college students, you can do things that may help you lower the amount you spend on textbooks for the year. Start by seeing if you can rent these textbooks to avoid having to buy them at all. If the textbooks you need are not available for rent, see if you can find these books used instead of having to buy them new from your school's bookstore. You can also see if your school has any Facebook groups designated for buying and selling textbooks.

College Student Income

When you are putting together a realistic budget for a college student, it is not all about keeping track of your expenses. You will also need to incorporate the money you have from student loans, grants, scholarships, personal loans, and student employment. Consider things like: • The amount of tuition that will be paid for by scholarships and grants • The number of hours you work at your part-time job every month • How much money you have coming in from student loans, and the cost of paying these loans back

1. Student Loans, Grants, and Scholarships

When it comes to scholarships, grants, and student loans, you need to understand the differences: • Scholarships are generally given based on merit (academic, athletic, etc.) and do not need to be paid back. • Grants are generally given out based on needs from either the federal or state government. To see if you may qualify for a grant, you can submit a Free Application for

Federal Student Aid (FAFSA). • Student loans are given by certain financial institutions and the government, and this is money you borrow to help you pay for your education. They often come at lower costs than certain other loans. In addition, the cost of interest may be fixed, and in some cases, partially subsidized.

2. Personal Loans

When your money is tied up in rent, bills, groceries, textbooks, and school expenses, you may not have much money left over for any emergencies that pop up. If an unexpected expense comes up and you do not have the savings to deal with it, online loans may help. If you take out a personal loan, you will need to incorporate your loan payments into your budget.

3. Student Employment

If you are a student and you need help paying for your education and living expenses, a part-time job may be what you need to help you get by. Finding a job on campus could be ideal if you are looking for an employer that is comfortable accommodating your school schedule. Still, you may also find employers off-campus that are willing to do the same — especially if you are living in a college town where businesses are used to employing students during the school year.

Creating a Student Budget

Going off to college can be one of the most exciting times in your life, but it is essential to remember that your education likely will not be cheap. If you want to get through these student years, you will need to be careful with spending your money. Make sure you put together a realistic college student budget and incorporate things like: • Rent and utilities • Transportation • Food • School supplies You will also need to know what financial options you have at your disposal, like scholarships, grants, and student loans, and you will need to understand the differences between them. Your college years are going to be some of the best of your life, so make the most of them! HE