Read on for more details about the types of income and expenses you can expect as a college student. Expenses generally fall into two categories: recurring (e.g., tuition) and variable (e.g., dining out). Income could include everything from part-time job earnings to student loans. College Budgeting BasicsĪ basic budget tracks all of your incoming and outgoing money (income and expenses). Being able to make a budget and stick to it is a talent that will be handy (and save you headaches) throughout your entire adult life. Plus, the financial literacy skills you learn will continue to serve you well after college. Having a nest egg by the time you graduate can also help you set up your post-graduate life by funding steps like a move to a new city for work.įinally, by avoiding overspending and setting up savings, a budget can help alleviate stress around money matters in general. You can then use your emergency fund to cover unexpected expenses - like if your laptop breaks mid-semester and you need to get a new one quickly. For private schools, which tend to have higher tuition rates, the burden might be even more.Īdditionally, with a detailed budget, you may even be able to set aside savings. The average public university graduate has a debt of around $30,000 by the time they graduate (from a four-year program). Plus, you’ll want to come out of your college years with as little debt as possible, setting you up for a positive financial future in adulthood. You’ll want to make sure you have the liquidity to pay for the necessities while also minimizing overspending. Keeping track of these various expenses and forms of income can get complicated. You may pay for these college expenses in various ways, including scholarships and financial aid (FAFSA), student loans, support from parents, summer jobs and credit cards. Additionally, you may want to study abroad for a semester or do a summer internship, which may not always pay much, if anything. Plus, of course, you’ll want some money for socializing. There are also expenses like books, housing, your phone bill, transportation and entertainment (e.g., Netflix or Spotify accounts). Paying for college isn’t just a question of paying tuition. This personal finance guide for college students explains why you need a budget and how to create a monthly budget that works for you. Smart budgeting can also help you spend wisely and save on college costs, helping you avoid added debts on top of student loan debts you may already have. You don’t want to come up short and have to scratch by toward the end of the month, semester or school year. While budgeting may not be at the top of your to-do list, carefully tracking your incoming and outgoing expenses can help ensure smart money management throughout your college years. As a college student, your main priorities are probably school and your social life.
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