This guide will walk you through the essentials of budgeting for college students, covering everything from meal plans and textbooks to managing housing and entertainment expenses. We’ll also introduce tools and resources, like 91şÚÁĎÍř First’s Student Line of Credit and Money Management tool, to help make budgeting simpler and more effective.

Why budgeting matters for college students

Financial independence starts here

College is a time when many students transition from financial dependence on their parents to managing their own money. Whether you’re paying for tuition, managing rent, or simply trying to stretch your meal plan until the end of the semester, learning to budget is a skill that will serve you well for years to come.

Instead of feeling stressed or unsure about where your money is going, a solid budget puts you in control. Knowing how to allocate your funds allows you to focus on the experiences that matter most—academics, friendships, and personal growth.

Long-term benefits beyond college

Good budgeting habits transcend campus life. Learning to live within your means as a student can reduce your reliance on credit card debt and help you minimize student loans. Over time, this discipline builds a strong financial foundation, making it easier for you to save for major life milestones like buying a home or starting a business.

Breaking down your expenses as a student

Before you can create a budget, it’s essential to understand the types of expenses you’ll need to plan for. While campus life comes with some predictable costs, others can sneak up on you if you’re not careful.

Basics of college living costs

• Tuition and fees: Many students rely on scholarships, grants, and loans to cover these costs. Still, there may be other fees (lab fees, parking permits, etc.) to account for.
• Housing: Whether you’re living in a dorm or off campus, rent or housing fees will typically be one of your biggest expenses.

Beyond the basics – Additional costs to plan for

• Textbooks and supplies: These can quickly add up, so consider buying used books, renting, or going digital when possible.
• Dorm necessities and decor: If you’re living in a dorm on campus, you’ll likely need to bring your own extra long sheets, blankets, towels, cleaning supplies, mini fridge, decorations, and other living essentials when you first move in.
• Food and meal plans: Meal plans can be convenient, but keep an eye on whether you’re using all your swipes. If you’re cooking, meal prepping can save money.
• Transportation: Whether it’s a campus shuttle, public transit, gas for your car, or on-campus parking permits, this is another expense to factor in.
• Entertainment: While it’s important to enjoy yourself, setting limits on outings or subscriptions can help keep spending in check. With any activity, ask if a student discount is available. You can often find student discounts for things like movie tickets, museums, zoos and aquariums, and much more!

Expense tracking tip

Start logging every expense, no matter how small. Even a quick coffee break or late-night pizza can add up over time. 91şÚÁĎÍř First’s Money Management tool can help you categorize your spending and identify areas where you might want to cut back.

How to create a realistic college budget

Step 1: Calculate your income

Start by determining how much money you have coming in each month. This might include earnings from a part-time job, financial aid, money from your parents, or savings.

Step 2: Categorize your expenses

Divide your spending into categories, such as:

• Essentials: Rent, tuition, meal plans, and utilities.
• Non-essentials: Streaming services, gym memberships, and shopping trips. (Almost every college campus has a gym that is free for students to use. Take advantage of that!)

Identify how much of your income should be allocated toward each category. A good rule of thumb is the 50/30/20 rule—spend 50% of your income on needs, 30% on wants, and save 20%.

Step 3: Set spending limits

Once you’ve categorized your expenses, assign realistic spending limits for each. Be disciplined, but also give yourself a little wiggle room for surprises or emergencies.

91şÚÁĎÍř First’s Money Management tool can help by visualizing your spending. Use it to track how close you are to your limits and adjust as needed.

91şÚÁĎÍř First tools to simplify budgeting

The Money Management Tool – Your personal financial assistant

With its user-friendly interface, 91şÚÁĎÍř First’s Money Management tool is a must-have for students. Here’s what it can do for you:

• Connect all your bank accounts to get a complete financial picture.
• Track spending trends and identify opportunities to save.
• Set up realistic financial goals, like paying off a loan or saving for spring break.

Budget-friendly tips for college students

Save smarter, not harder

• Take advantage of discounts: As we mentioned earlier, many businesses offer student discounts—always ask!
• Plan meals: A little planning can cut food expenses significantly. Use your meal plan wisely or learn simple, budget-friendly recipes. (Ramen anyone?)
• Utilize free campus resources: Don’t overlook free events, gym access, and transportation options on campus. Consider becoming a Resident Assistant (RA) if you’re living in a dorm, as they typically get free housing.

Watch out for budget pitfalls

• Avoid the temptation to overspend on credit cards unless you can pay off the balance.
• Plan ahead for irregular expenses, like travel home for the holidays or special events like graduation.

Build good financial habits early

• Automate your savings with recurring transfers that you don’t have to think about.
• Regularly review your budget and make adjustments as your needs change.

Start building financial confidence

Starting college is a big step toward becoming financially independent, and the sooner you master budgeting, the easier it’ll be to stay on track. By breaking down your expenses, setting realistic goals, and using tools like 91şÚÁĎÍř First’s Money Management app and Student Line of Credit, you can take control of your finances with confidence.

The post Budgeting for college students: A practical guide for starting out appeared first on 91şÚÁĎÍř.

How much does college cost in 2025?

According to , here are the average costs you might see for a four-year college program.

• Public four-year college, in-state: $119,640
• Public four-year college, out of state: $196,320
• Private four-year college: $251,960

These costs have greatly increased since 18 years ago. In 2007 the average cost to attend a public in-state college was only $26,020, a public out-of-state college was $65,816, and a private college was $24,253.  It is safe to assume that in 18 years from now, the cost of college will be even greater. More of a reason to start saving for your child right now.

How to start saving for your child’s college fund

Consider a tax advantage savings account

give college students the ability to withdraw tax-free dollars for qualified educational expenses. These accounts work similarly to Roth IRAs, except their purpose is for education not retirement. The downside to these accounts is that they are meant only for college expenses, and those funds must be used by age 30 or transferred to someone else who can use them. If your child decides not to go to college, you could end up with no use for these funds, leaving you to face penalties when you withdraw the money for anything non-school related.

This type of account differs from the Coverdell Educational Savings Account (ESA) made for savings that can only be used during grades K-12. This type of account may benefit you by minimizing expenses while your child is in grade school so that you can save more for their college years.

Open a second savings account specifically for college funds

Accounts like our All Purpose Club savings account are a great way to save for a specific purpose. These accounts are made to be an addition to your main savings account. You can store funds specifically for your vacation, your Christmas shopping, or in this case your child’s education. This account earns dividends on deposits over $10. So while you’re waiting for your child to turn 18, your money is growing in the account. You can make withdrawals for any reason, no penalties involved.

Open a custodial account

A custodial account is one that a parent opens in the child’s name, but the child cannot have access to it until they turn 18.  The parent is the “custodian” that controls the funds in the account until then. This differs from a joint account which allows all owners to transact.

Set up a savings rule: direct deposit or recurring transfer

You can set up consistent contributions to your college fund account. Whether that is monthly, daily, weekly, or other – you can begin with transfers for as little as $5 or $10 to get the account started. Choose an account with high interest or dividends, like a money market, and watch your cash grow. You can contribute to this account by setting up a portion of your paycheck to be direct deposited, set up a recurring transfer from one account to another through your financial institution, or manually transfer at the frequency you desire.

Open a certificate

Share certificates are high yield accounts that grow your money. You make an initial deposit and choose a term length during which your money will stay dormant and earn dividends. When your term is up, you can add more funds or just let the funds you have rollover into a new term. this account will continue to grow until your child is college aged. Again, there are no restrictions or penalties for using these funds for anything other than education once they are withdrawn.

Teach your child to start saving at a young age

Your child will likely start to earn money from you or relatives at a young age. Through birthday and holiday gifts, allowance, helping out neighbors, or any other means. Start teaching them the value of a dollar while they’re young. Set up a piggy bank for them until they are old enough for a real bank. Teach them that they must keep some emergency savings and not spend all of their money at once. They can eventually keep a savings for their own college education. More tips for teaching kids to save money can be found here.

Don’t sacrifice your own retirement

Experts agree that even when you have a child to think about, you should always make sure your retirement savings are set before you start putting away money for college. There is no guarantee that your child will attend college, but you will almost certainly need to retire at some point in your life. Ramsey Solutions suggests you should have 15% of your annual household income in a retirement account before even thinking about starting to save for your child.

Ways to help your child save for college if they’re already in high school

For some, it may take a while to get 15% of your household income in a retirement account. If you’ve reached that point when your child is older than you had expected, here are some ways you can encourage them to save for college.

Scholarships

There are many scholarships that your child could apply for to help pay for their education. There are academic scholarships, sports scholarships, creative scholarships, grants, and more. Help your child search for scholarships that would fit with their skills, background, or field of study. They can apply for more than one.

AP classes

Advanced Placement (AP) classes are offered to high school students and can earn them college credits. If they earn college credits before starting college, that means less classes they will have to take and a possibly reduced tuition costs. Just make sure that the college your child will be going to will accept those credits.

Cheaper schools

As you saw in the research, the cost to attend an in-state college is less than an out-of-state or private college. Don’t think you’re child is going to get any less of an education at a cheaper school. Some state schools, especially those in Massachusetts, have excellent programs and successful graduates. Try to encourage them to apply to these schools.

Part-time or summer jobs

Encourage your child to pick up a job when they become old enough and begin saving their paychecks.

Tuition reimbursement through their employer

Help them look for jobs that provide tuition reimbursement as a benefit. Many employers offer this for courses in their field. For example: 91şÚÁĎÍř First offers tuition reimbursement to its employees who enroll in a degree program related to our institution. Plus partial reimbursement of books and fees.

Start budgeting and saving now

The best way to get started with saving is to create a budget and try to pay off any debts you have. Reduce the costs of your bills or make extra payments to your loans to get them paid off faster and free up more money to save. Then you will have more to put away for both yourself and your children. Find more resources about Saving & Budgeting on our blog.

See how much you need to save monthly to reach your college savings goal with our Savings Goal Calculator.

Sources:

The post College Savings: Planning for your child’s education appeared first on 91şÚÁĎÍř.

Additionally, 91şÚÁĎÍř First has some tips to offer on how to budget and save to make managing debt easier for you.

Resources & Repayment Plan Options

FSA offers eight different repayment plan options.

Some types of loans are eligible for certain repayment plans but not others. Use FSA’s to compare plans and help you choose the one that best fits your needs.

SAVE Plan

Formerly the REPAYE Plan, the Biden-Harris Administration made some changes and launched in 2023. Touting it as the most affordable student loan repayment plan ever. Here are some quick facts about the plan which come straight from the FSA link above. Visit their page to learn more.

• The SAVE Plan decreases monthly payments by increasing the income exemption from 150% to 225% of the poverty line.
• Your monthly payment amount is based on your discretionary income—the difference between your adjusted gross income (AGI) and 225% of the U.S. Department of Health and Human 91şÚÁĎÍř Poverty Guideline
• If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the SAVE Plan prevents your balance from growing due to unpaid interest.
• The SAVE Plan excludes spousal income for borrowers who are married and file taxes separately. Previously on the REPAYE Plan, your spouse’s income was included as part of the total income used to determine your monthly payment amount.
• Under the SAVE Plan, your monthly payment could be as low as $0.
• More elements of SAVE will go into effect in summer 2024 and will lower payments even more for borrowers with undergraduate loans.

Other Resources

How to manage your student loan debt

Whether you have a family that you need to feed, or you are a recent graduate not making quite enough money yet, there are many reasons some may not be able to afford their student loan payments. But student loans will affect your credit score and your debt-to-income ratio.* Two things that are very important if you want to take out a loan or mortgage. For that reason, you won’t want to leave them unpaid now that payments have resumed.

An easy way to make sure your loans are paid on time is to set up autopay, which can also give you a discount of 0.25% on your payment depending on who is servicing your loans. If you were enrolled in auto pay before the payment pause, you’ll likely need to re-enroll now.

Once you’ve taken the first step to choose which repayment plan will work for you, the next step is to come up with a plan for debt payoff.

Money Management Tools & Debt Payoff Strategies

91şÚÁĎÍř First members are eligible to enroll in online and mobile banking. With your 91şÚÁĎÍř First checking account hooked up to the Money Management tool, your transactions can be tracked and marked with categories such as home, food & dining, entertainment, etc. (you can create any custom categories you want). This tool is free to use, unlike similar budgeting services that exist.

To get yourself out of debt as fast as possible, try different debt payoff strategies. If high interest credit card debt is holding you back from making your student loan payments, the debt avalanche strategy may be a viable option for you. Read about debt avalanche and more debt payoff strategies in our article How to Pay off Debt Faster.  There, you’ll also find tips to cut down on monthly spending.

Our Debts tool within Money Management can forecast debt payoffs, showing you a timeline for which you can achieve your goals. Whether that be to apply for a mortgage, or to just be debt free. You may also want to consider debt consolidation. A home equity loan or line of credit could help you move all your debt payments to one place, with one interest rate. Personal loans can be used for debt consolidation as well. Use the debts tool to compare strategies and decide which is best for you.

*Your debt-to-income ratio is your total monthly debt, divided by your gross annual income. The percentage from that ratio, along with your credit score, are two major deciding factors for whether you are approved for a loan.

The post How to manage your student loan payments appeared first on 91şÚÁĎÍř.