As you prepare for a new year at university, managing your money may be the last thing on your mind. Yet university is the perfect time to instill strong and healthy financial habits, such as budgeting and living within your means. While we all know that having a budget is important, it's easy to forget to sit down and dedicate time to creating and maintaining one — especially if you're in university. But when it comes to managing personal finances, creating and using a budget is absolutely essential. By starting on the right foot with good saving and spending habits, you'll have a chance to set yourself up for a life of financial success.
Budgeting at University
What areas do you spend the most in? What goals are you saving for? As a student, you'll have a different set of priorities and financial responsibilities than if you were in the workforce. You may have a part-time job or rely on family to help cover expenses. It's important to remember that your expenses will extend beyond tuition. Here are a few categories to keep in mind as you create a budget and continue to track costs at the end of each term:
Housing
Living with family while you attend university can be a great way to save money. If that isn't possible, you have a couple of options. Here are some tips to guide your search:
- Look for a place as far in advance as possible. Compare your options, taking cost and convenience into account. Remember that sharing a room with a friend or another student can help you cover housing costs. In addition to choosing somewhere affordable, ensure the place you select makes campus easily accessible.
- Start by finding roommates that are financially responsible. Keep in mind that if you’re on a lease together, in the event they fail to pay their share, the rent may fall on you. Then determine a budget. After tuition, food and books, how much do you have to spend on rent? Don’t forget the deposit and utilities.
- Now you can look for an apartment. Your university might provide guidance for finding housing. It may also help to explore your social network to see if anyone knows of available units.
- Do not rent an apartment without seeing it. Make sure your new landlord is available to show you the place. Also make note of any pre-existing damages to ensure the landlord addresses them before your move-in — and doesn’t charge you for them after the end of your move-out.
- Depending on your university, you may also have the option to live in university housing. Living in university housing can be more convenient, but can also be more expensive.
Even if your parents provide the money needed for housing or food, budgeting those items is a good idea. Working on developing smart habits and taking accountability for how you save and spend during your university years will benefit you in the long run.
Books
Textbooks can be an expensive addition to your budget. Luckily, there are plenty of ways to spend less on textbooks. Buying a gently used textbook rather than a brand-new one — or buying an e-book instead of a printed textbook — can help you save. Many retailers offer the option to rent books for a reduced price. You can also make some of your money back by reselling your textbooks at the end of the year to certain retailers or fellow students. Or cut costs entirely by looking into whether your school provides a free book exchange with other students.
Food
Explore all of the food stores around your university for the best deals on groceries — some stores will sell the same product at a higher markup than others. You may also be able to find coupons and deals either in-store or online.
Of course, being in university doesn't mean you can't indulge yourself. Take the bite out of restaurant costs by choosing water over expensive drinks, or splitting an appetizer (and its cost) with your friends. Decide what makes the most sense for you between classes, whether it's packing a lunch you can eat near class, stopping at a cafe, or picking up a bargain takeout meal.
Entertainment
At university there are plenty of opportunities to have fun without spending loads of money. Keep up to date on upcoming university events, many of which may be cheap or free. Cooking meals with friends can be a great form of socializing while saving, but if you decide to treat yourself and want to go out to eat or see a show, remember to take advantage of any discounts that may be available for students.
Work
Budgeting isn't just about expenses — remember that if you're working part-time or have a paid internship, the income you make should be logged in your budget. Tracking this money will give you a better picture of your financial situation overall, and you'll be able to see exactly what happens to the money you work hard for. Keep in mind that while part-time work is a great way to support yourself, your education should come first.
Investing
It may sound impossible to start investing while you are still in university, but there are a lot of fintech platforms that can help you start investing small amounts that can add up in the future. Investing may be the last thing on your mind while you are a student, but there are many tools available that can help you start investing in small increments while learning about the market.
For additional information on what a budget is or how to create one, visit Budgeting.
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