College is the beginning of most students’ financial independence and the first time they have to figure out how to budget their money. Here are some tips for budgeting in college:
Making a budget
Know your income
Understanding your monthly income — whether it comes from family contributions, jobs, internships, scholarships or loans — is the critical first step in creating a personalized budget. Add up all spendable funds per month as well as a total for the semester, if possible.
Keep a list or spreadsheet of expenses
Make sure to keep track of all costs you will need to cover each month. Separate fixed expenses like rent, utilities, meal plans and tuition from variable expenses like groceries, transportation, medications, personal care and entertainment. These expenses should also be labeled further into two groups: essentials and nonessentials. This labeling will help you figure out how to prioritize when spending.
Allocate funds and create your budget
As the name implies, you must prioritize necessary costs. Begin by adding up your monthly essential costs and subtracting the total from your monthly income. You can use whatever funds are leftover for unnecessary but desired costs or save them for later. If you do not have enough income to cover your necessary expenses, you may need to seek out scholarships, get a job or find cheaper alternatives when making essential purchases. Make sure to keep your budget documented, tracking all income, expenses and spending.
Sticking to your budget
Add updates when necessary
As your income and expenses shift, make sure your budget does too. This will let you know if you need to find ways to increase your income or stop spending too much on unnecessary products.
Make the most out of your budget
If you’re running out of funds, try to save in as many areas as possible. School supplies can be secondhand, textbooks can be rented or borrowed and household costs can be shared among roommates. When searching for fun activities to participate in, stray away from expensive restaurants and shopping and look into free activities or student discounted campus activities, like those at the Indiana Memorial Union, IU Cinema and IU Auditorium. You can keep up with campus events through beINvolved. Use campus amenities like gyms, pools, group workouts and career services, all of which are set costs covered by your tuition. Instead of stressing over transportation costs, use any of the IU-provided modes of transportation with just a tap of your Crimson Card. Also, join free student organizations to build community and have fun without spending money.
Don’t be afraid to ask for help
Chances are you know someone who has had to stick to a budget before, whether it is your parents, older siblings, friends, grandparents or even school counselors. If you are lost and need help, do not hesitate to reach out, even if that means searching for tips on Google. IU even offers a free program called MoneySmarts that can connect you with advisors to answer your financial questions. Budgeting can be hard, but sticking to it will pay off not only now, but for the rest of your life.
This story was originally published in the Indiana Daily Student's Housing and Living Guide print publication Feb. 21, 2025.
