Whether “money management” for you means coordinating loans, scholarships, and any income from a part-time job, or you’re managing savings or spending money provided by your parents, good money skills are important to develop. More than 20 percent of respondents to CollegeData’s Transition to College Survey said money management and budgeting were skills they wish they had mastered before starting college.
To help you become more financially savvy, we’ve compiled the following budgeting tips from real colleges students.* We hope these tips will inspire you to spend more wisely, develop and stick to a budget, and save money for your future goals.
When asked what they spend the most money on in college (aside from tuition, books, and room and board), eating out — including takeout, restaurants, and food delivery services — was mentioned most often by both students living at home and on campus.
To save money, students mentioned limiting their dining out to once per week or just a couple times a month, cooking food at home, and sticking to their college meal plan if they have one.
Eating between meals also caused these students to overspend. Snacks and drinks purchased on and off campus, especially coffee drinks, consumed a lot of their cash. Here are some ways students spent less in this area.
Transportation costs can change each term and depend on a number of factors, including whether you live on or off campus, how often you need to travel to and from campus, and how far you may be living from home and how often you travel there and back.
Owning a car can be super expensive – especially when you factor in gas, maintenance, car payments, parking fees, and insurance. The cost of ride services, such as Lyft and Uber, can also add up quickly. It can be less expensive to use public transportation or transportation provided by your university, if available, or to switch to human-powered transportation, such as a bicycle, scooter, skateboard, or even walking. Some of the students we surveyed said that adopting these less-expensive modes of transportation helped them save money.
Saving is one of the best money habits you can form at a young age. However, saving money isn’t always easy for cash-strapped college students. Even so, setting aside a small amount of money in a savings account each week or month can help you develop a habit of saving – and this is more important in the long run than how much you actually save.
Having a savings goal also helped some of our survey respondents save money. The Consumer Financial Protection Bureau recommends writing down your savings goal (such as a new laptop) and the amount of money needed to achieve it, and figuring out where you can cut your spending (or increase your income) and how much you need to save each week or month.
One savings goal might be to establish an emergency fund to cover unforeseen expenses, such as medical bills, car repairs, or surprise college costs such as additional classes or books.
If you have the time to do so, working during college can provide extra income for college expenses and/or for building your savings. If working during school isn’t an option, consider taking on seasonal work during school breaks and over the summer.
In addition to the paycheck, working during college can help you improve your time management skills, develop your network, explore a career field, and gain important professional skills.
If you are trying to stick to a budget, you don’t want to make unplanned purchases. But we’ve all been guilty of impulse buying at one time or another — especially during “Black Friday” and “Cyber Monday” or any flash sale. This is where understanding the difference between “needs” and “wants” can be helpful.
A “need” as defined in economic terms is anything required for your survival – water, food, and shelter are basic human needs. But needs vary from person to person. “Wants” are things you desire because they improve your enjoyment or quality of life. White chocolate mocha lattes, video games, or trendy beauty and fashion items are examples of wants. A computer may be a need during college, but the latest Apple laptop might be considered a want.
Some students said they appreciated having a low limit set on their credit cards, which also helped them avoid impulse purchases.
Take advantage of your student ID card — it can make you eligible for student discounts on a wide range of products and services, including technology, subscriptions, transportation, dining and entertainment, clothing and more. Even saving a few dollars here and there can really add up – especially if you make a point to put the money you save into a savings account.
More than half of the students surveyed (58 percent) admitted that they didn’t use a formal budget during freshman year. But some students said that they tracked their spending in other ways.
Colleges often offer a variety of free or low-cost resources, activities, and services for students. Thrifty students seek out and take advantage of these resources to not only help them save money but to also connect with their campus community.
At some colleges, additional financial support in the form of small loans and grants may be available to help cover unexpected expenses and basic necessities.
We hope these tips from college students will help increase your awareness of your own spending habits and improve your financial well-being now and in the future. How well you manage your money now can set up lifelong habits that will benefit you long after you graduate.
*Advice provided by students surveyed in 2023 Transition to College Survey and students featured in CollegeData’s Road to College Student Stories.