Budgeting Tips for College Students: A Step-by-Step Guide

Managing your finances as a college student can be daunting, but it's an essential skill that will help you stay on top of your expenses and avoid unnecessary debt. Whether you're a first-year student finding your independence or a senior preparing for the next chapter of your life, budgeting is vital to financial success.

To help you get started, we've created a list of budgeting tips for college students. These tips will help you manage your money without calling the Bank of Mom and Dad.

Create a College Budget Plan

The first step to budgeting is to create a plan to track your income and expenses. This will help you understand where your money's going each month.

Here's how to create a college budget plan that works for you:

• Assess your income: Tally up the money you receive each month, including financial aid, part-time jobs, allowances, or parental support.
• Make a list of expenses: Write down all your expenses, big and small. Categorize them into essentials (tuition, textbooks, rent, cell phone,  transportation, and groceries) and recreational spending (entertainment, dining out, and clothes).
• Set goals: Consider short-term and long-term financial goals you'd like to hit. These could include saving for emergencies, textbooks, or future expenses.
• Create your budget: Based on your income, expenses, and goals, create a budget that allocates amounts to each category. Be sure to leave room for unexpected expenses.

Here are some additional tips for creating a college budget plan:

• Use a budgeting app or software. Many free and paid budgeting apps and software programs can help you track your income and expenses. A few examples include Mint, YNAB, and EveryDollar.
• Be realistic about your spending. It's essential to be realistic about how much money you must spend each month. Tracking your spending will help you understand where your money's going.
• Feel free to ask for help. If you're struggling to create a budget, ask a financial advisor, trusted friend, or family member for help. DBU's Office of Financial Aid is also available to provide guidance and resources to help you learn and grow.

Prioritize Your Needs Over Wants

One of the hardest lessons in money management is understanding (and accepting) the difference between your needs and wants.

Here are a few questions you can ask yourself when determining if something is a need or a want:

• Does it fulfill necessities like food, lodging, or transportation?
• Is it essential for your academic success, such as textbooks or necessary software programs?
• Will it impact your financial well-being long-term, such as investing in a laptop for your studies?
• Will it help you achieve your financial goals, such as saving for a down payment on a house?

If you can answer "yes" to one or more of these questions, it's likely a need rather than a want. Prioritizing your needs over your wants will help you stay on track financially and reach your goals.

Compromise When It Comes to Wants

Prioritizing your needs doesn't mean you can't have any of your wants. The secret behind money management is doing it in a way that allows you to do both without hemorrhaging your bank account. 

Here are some strategies that can help you learn how to compromise and stay within your budget:

• Meal planning: Instead of going out to eat every night and spending all your cash on food, write a list of ingredients and a meal plan for the week. This will save you money, and cooking may become a new hobby.
• Use student discounts: If you have your student ID, use it! Many retailers offer discounts to students, so take advantage of those savings whenever possible. For example, Apple, Adobe, Spotify, and even Netflix offer student discounts.
• Take advantage of public transportation: Public transportation, carpooling, or biking can help you save on fuel and parking expenses. Options near DBU include Dallas Area Rapid Transit (DART) and the Trinity Railway Express (TRE).
• Rent your textbooks: Renting your textbooks is another way to pinch pennies and save. Not only will it save you money, but it's also environmentally friendly and eliminates the clutter of unused textbooks after the semester. Alternatively, you can sell your used textbooks (if you decide to buy new ones) to make extra cash when you're done with them.
• Shop second-hand: Consider browsing thrift stores and online marketplaces for affordable clothing, furniture, and supplies.
• Use campus resources: Take advantage of campus facilities, such as libraries, computer labs, fitness centers, the counseling center, and student support services, to avoid unnecessary expenses.

By implementing these budgeting tips, you can effectively manage your finances and maximize your college experience at DBU. With a well-planned budget, you can achieve your financial goals and have a successful college experience.