The newfound freedom of college life often puts you in control of your money for the first time. Here are a few budgeting tips to help you manage your money while in school and avoid unplanned debt later on.
A budget can help you manage your spending to save for short-term needs – like books for the upcoming semester – and future goals such as a spring break vacation with friends. As a college student, this may be your first budget, so here are some tips to help you get started:
1. Track your spending
The key to budgeting is being honest with yourself about what you’re spending money on. Before you create a budget, keep a spending log for a month or two and record every penny you spend. Consider using a budget tool like My Spending Report, Wells Fargo's online money management tool.
2. Make a list of your income and expenses
A budgeting worksheet is one way to document what you're spending and the money you have coming in. Start by listing your monthly income. Include what you’re earning from your job or Federal Work-Study, your allowance, financial aid, and scholarships. Then list your expenses based on your spending log. It’s helpful to separate your expenses into categories like housing, food, entertainment, education, etc.
To get a better visual, try using My Money Map. This tool allows you to view your spending and savings in easy-to-understand charts.
After totaling your income and expenses, determine how much you can spend on your needs for the whole semester, including visits home, class materials, and groceries. If you have money left over, consider using it to boost your savings to cover any unexpected expenses. If it looks like you’ll run out of money before the semester is up, look at areas where you can cut back. For instance, instead of spending money on dinners out, get your friends together to make a meal in the dorm. You can also save extra cash by opting to purchase or rent used textbooks instead of new copies.
4. Revisit and adjust
As expenses and income change – say, your landlord raises your rent, or you receive a grant from your school to help with tuition – it’s time to revisit and adjust your budget. Remembering to do so will help make sure you stay on track.
Now that you have more control of your money, you can be intentional about how you use and save it. Getting in the habit of creating and maintaining a budget in college can make it easier to manage more complex finances successfully after graduation.
Not Insured by the FDIC or Any Federal Government Agency
Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.
Start by listing your monthly income. Include what you're earning from your job or Federal Work-Study, your allowance, financial aid, and scholarships. Then list your expenses based on your spending log. It's helpful to separate your expenses into categories like housing, food, entertainment, education
education
onderwyser (plural onderwysers, feminine onderwyseres) teacher (male, or gender neutral)
What is a good college budget? A good college budget prioritizes needs and savings over wants. A good template to follow when budgeting is the 50-30-20 ratio—50% of your income covers needs, 30% goes toward wants and 20% is for savings. This format can guide you in creating your next spending plan.
Made to make student life just a little easier. A convenient way to access your money on and off campus, plus exclusive benefits with a Campus Card linked to an eligible Wells Fargo checking account.
What is a reasonable monthly budget for a college student? As you can see from the above, college students spend around $2,075 per academic year on additional expenses beyond tuition, room and board, books and supplies, and transportation. That amount may cover clothing, laundry, toiletries, entertainment, etc.
The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.
Some families give their students a monthly allowance, ranging from $75–$225, to supplement the student's own savings. An allowance may no longer be necessary after the first year, especially for students making good money through summer employment.
Chase College Checking is one of the best student checking accounts. There's no monthly service fee (before you graduate or with one electronic deposit per month) or minimum deposit requirement.
Everyday Checking from Wells Fargo is available with no monthly fee when the account owner is 17 to 24. Wells Fargo has partnered with nearly 30 colleges to offer an "all-in-one" school-issued campus ID and ATM card. The card can be used for campus services, such as meal plans or library access, as well as banking.
Getting by on $1,000 a month may not be easy, especially when inflation seems to make everything more expensive. But it is possible to live well even on a small amount of money. Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money.
According to a survey conducted by the College Board, college students spend an average of $150 to $300 a month on groceries. However, it's important to note that the amount spent can vary depending on several factors, including the student's location. or dietary preferences.
50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).
How much should a college student spend a month? For the 2024-2025 academic year, a college student with a moderate budget should anticipate spending $26,400 to cover nine months of living expenses while attending school, or about $2,900 a month, according to the College Board.
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.
According to the College Board, students can expect to spend around $2,932 a month (or $26,390 for a nine-month period) on living expenses for the 2024-25 school year. To break that number down, let's take a closer look at how much college students spend on food, housing, and other expenses.
Student-Based Budgeting (SBB) allocates dollars to schools based on the number of enrolled students, where each student receives a funding “weight” based on need. This model can allow districts to increase equity, transparency, and flexibility.
The common method of allocating one's income is to use a 50/30/20 rule. This means that 50% of one's income should go to fixed expenses and things that are needed, like buying gas. Next, 30% of one's income goes to wants or unnecessary spending. Wants are often entertainment or activities.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
A budget can help you manage your spending to save for short-term needs – like books for the upcoming semester – and future goals such as a spring break vacation with friends. As a college student, this may be your first budget, so here are some tips to help you get started: