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Whether it’s your freshman or senior year of college, you’re hopefully beginning to feel settled and prepared to tackle the fall semester. Amidst a stack of textbooks and endless trips to the library, managing your finances and a budget might be the last thing on your mind during the academic year. However, it is possible to balance your financial health with your academic and social life during college.

Follow these simple steps and guidelines to learn how to manage a budget during your college years.

 

Stick to a Budget Plan

College is undoubtedly a place to identify your priorities, especially when it comes to your money. Use a defined budget plan to ensure your money is dedicated to where it’s most needed, whether that be tuition and housing, groceries, or for textbooks and other school supplies.

To create a college budget, the 50/30/20 budget plan would be a great starting point. This plan dedicates 50% of your monthly income on your needs and living expenses, such as rent, utility bills, and groceries. From there, you can keep 30% for entertainment and your “wants,” such as dinner out with friends or seeing a movie. Finally, store your remaining 20% into a savings account or emergency fund.

As with any budget plan, regardless of if you’re a college student or not, be sure to regularly check in and see where your money is going. There are always bumps in the road that may come along and derail your budget, so remain disciplined and be aware of how successfully you are handling your finances.

 

Make the Most of What College Offers

If you haven’t already, take a look at the different scholarships and grants your college offers towards college tuition. Depending on the disbursement and type of scholarship, this money can go a long way in helping decrease your overall student loan payment in the future.

Outside of tuition, be sure to explore all the cost-saving measures your university offers for students. Take advantage of your meal plan and don’t leave that money on the table, as it could account for your meals or groceries. If you’re seeking to explore areas outside of campus for a weekend or a break, consider taking any kind of public transportation that your school offers which may be free for students to use.

 

You Don’t Need Brand New Supplies

Used textbooks can go a long way in helping you save money and stick to your budget. Whether it’s at your campus’s bookstore or an online service such as Chegg, you’ll more than likely receive a book in fine condition for your classes. Or, if your campus bookstore offers the service, consider renting your textbooks for the semester.

As for clothing or appliances for your dorm room or campus apartment, explore thrifting items. It’s likely that you’ll find something you like, and you’ll be saving some money along the way. A thrift store may also have more affordable decorations and “fun” items for you to jazz up your living space for the semester.

 

Explore a Part-Time Job

If your schedule and grades allow for it, consider taking on a part-time job to help boost your income. Your campus likely hosts a variety of opportunities, from the dining halls to tutoring or even being a resident assistant. A part-time job can also be a great way for you to meet students who are outside of your own classes and major.

Just as you’ll need to budget your money while at college, be sure to budget your time, especially when it comes to a part-time job. Your coursework should always be your top priority. Commit to a schedule that works for you and aligns with the time you’ll need to complete assignments and study for exams.

 

Building Your Credit at College

College is a great time to explore building your credit. As you get older, your credit history is a crucial element when being approved for a mortgage or other loans. Of course, keep in mind that your monthly credit card statement will become another element of your monthly budget in the essential purchases category.

But how does having a credit card build your credit? The purchases you make with your credit card will need to be paid back monthly in either the full amount or a portion of the amount, depending on what you are able to pay month-to-month. These payments show the lender you are a reliable borrower and help build the foundation of your credit history and score.

If you don’t already have a credit card, now may be the perfect time to apply for one. At American Heritage, we are please to offer a variety of credit card products to meet your diverse needs. Each card offers unique benefits, which can even reward you for making certain purchases!

As beneficial as building credit can be, uncontrolled spending with a credit card can become a slippery slope, especially if you are freely purchasing items you don’t necessarily need. This kind of behavior makes it harder to pay off your card month-to-month. Be sure to maintain a credit card balance that you can work towards paying off, as opposed to just making the minimum payment. In addition, steer clear of large, unnecessary purchases which may appear tempting at the time, but are not essential to your overall health and well-being.

 

What About Student Loans?

Depending on your situation with paying for college, student loans may be a looming presence over your college years. While not necessary, if you are able to make payments towards your school loans while a student, it can absolutely work to your advantage. Early payments will help you save on interest, which inflates your student debt. Be sure to work these payments into your budget reasonably and adjust as needed.

If you’re unable to make payments on your student loans while in college, there’s no reason to worry. Depending on the types of loans and your borrower, you’ll most likely need to begin repayment six months after your graduation. The borrower should offer different payment types, such as ones aligned with your income, to set you up for successful repayments.

 

Preparing Your Next Chapter

We’re proud to offer a variety of products, from credit cards and savings and checking accounts, to meet the unique needs of your student experience. Whether buying books and supplies or saving towards that special class or program, we’re here for you.

Just as college is an exciting next step in your life, it’s also a perfect time to take full control of your money and financial independence. From building credit to planning and sticking to a budget, budgeting in college and developing financial responsibility sets you up for a successful life following school and beyond.