How to Set Up a Simple Budget As a College Student

Hi there! As an NSU student, I know how tough it can be trying to keep your finances in line while juggling school work, a social life and all the joys of being a college student. I felt completely overwhelmed when I first tried budgeting there always seemed to be an expense that caught me off guard, like textbook purchases, late-night snacking, or last-minute plans. Yet budgeting is one of the main reasons I was able to save for necessities, avoid emergencies (mostly), and still enjoy myself throughout college in a way that stayed true to my values. For example, budgeting does not mean constraining every single dollar that goes in or out of a bank account it means spending mindfully to alleviate financial tension. Having a budget helps you spend within your means so that there is no financial stress and also save in order to meet the goals of life such as building an emergency fund, going on holidays or paying off the student loan. An un-budgeted income can quickly turn into overdrafts, loans and cash shortfalls in the times you need it most Budgeting enables you to spend within your means and you gain the confidence to make wise spending choices. Here's what to do whenever money comes into your account: from a paycheck to student loans, family support.

Start by figuring out how much you receive monthly. This includes wages, financial aid, family support, and any side gig income. If your money arrives sporadically (like financial aid), plan by estimating an average amount per month. 

When your money lands, divide it right away the key is divided it cause as student expenses going to pop up because you want to live college life (party, concerts, drinks dining out...) but you need to cover your essentials first. Use the 50/30/20 rule as a rough guide. Since college students often don’t have big expenses like rent or utilities covered, modify the 50% for “needs” to cover things like: 

1. Food/groceries 
2. Books and study materials 
3. Transportation (e.g., gas, bus pass) 
4. Savings for emergencies 

If you’re serious about building a safety net, automate a portion of your income to go directly into a savings account. Even setting aside $20 a month builds up over time. 

Your next step is to save for the future. This could include setting aside money for things like student loan payments after graduation, larger purchases, or investing. Consider putting this amount directly into a savings or investment account, so you aren’t tempted to spend it. ( Fundraise , SPF 500...) 

After handling essentials and saving for the future, the remaining 30% can be used guilt-free for “wants.” This can include things like: 

1. Eating out 
2. Concerts and activities 
3. Buying clothes or electronics 

This part of the budget lets you enjoy your college life without overspending. However, try to track these expenses to ensure you don’t dip into your savings or essentials by accident. Budgeting does not mean enjoying.  

Life changes quickly in college, so revisit your budget at least once a month. If you realize you’re overspending or have new expenses, tweak your budget to stay on track. There are budgeting apps available (like Mint or YNAB) that help you categorize and track spending in real-time, so you’re always aware of where your money is going. 

By dividing your money as soon as it arrives, you’re ensuring that the essentials and savings are taken care of first, leaving you with funds you can confidently spend on things you enjoy. This method helps build a sense of financial security and responsible spending habits, even with a limited income. 

What if I need a very simple budget spreadsheet?

Start with your total income each month, then write down estimated expenses for 3 categories; Needs( things like groceries and basic necessities), Savings (this may be an emergency fund),and Lifestyle habits ( eating out and recreational activities). You can use a basic spreadsheet or even a Google Sheets template and follow the 50/30/20 rule—spend 50% on needs, 20% on savings and 30% on wants. Change these to fit your own situation and costs.

How to maintain and track your spending without crossing the line?

Consistency is crucial! Track your spending weekly by checking in on the account and re-evaluating your budget to stay on top of what you have available. Try using budgeting apps like Mint or You Need a Budget (YNAB) that automatically categorizes and tracks your spending. Tracking Expenses: The most immediate thing you can do to take control is track your spending in the moment, so that you know where it needs to be adjusted.

What if I make mid-to-low six-multipliers and run out of money?

Prioritize essentials, such as food, transport and school supplies; make sure to pay these out of your income before you spend on anything that is not mandatory Next, look for ways you can save money (i.e. cut down on spending on entertainment) and utilize student discounts as much as you can! If possible, take on a part-time job/side hustle to earn more.

My paycheck-to-paycheck life leaves no room for saving.

You can put away small amounts, even $5 or 10 for this with each paycheck. Make regular transfers to your savings account in order to cultivate this practice over time. Over time those small totals will add up and you have a pot in place for any surprises.

What to do with unexpected expenses without destroying my budget?

Prioritize the Creation of an Emergency Fund, Even If You Start Small Create a separate savings account and contribute to it a little each month so you have money set aside for the inevitable surprise expenses — which should help avoid any household budgeting disruptions.

Good Studio How often should I update my budget?

Check Your Budget Regularly Each month, or when your income or expenses change. Updating your budget helps to make sure that it remains both achievable and in line with your financial position and aspirations.

What can I do to maintain motivation in budgeting?

While good things take time, remember what your goals are (to pay off college debt, to save for a special trip, or the need to become financially stable). Always remind yourself why you are budgeting, and make small celebrations (spending within the budget for a month). While it may be difficult to accomplish financial independence in college, the endeavor is undoubtedly worth pursuing!