5 Realistic Budgeting Tips for University Students
5 Realistic Budgeting Tips for University Students
It’s back to school time again, and for many university students, managing the costs associated with a post-secondary education can be overwhelming.
You’ve probably heard that you should have a budget, but between homework, midterms, and maintaining a personal life, budgeting can seem like a lot to take on.
These 5 realistic budgeting tips will help you reduce financial pressure and help manage the cost of university or college:
Set reasonable goals
Track your spending (create a budget)
Build an emergency fund
Get a cashback credit card
Use cash for fun
Set reasonable goals
Before creating your budget, start by setting some personal, financial, and academic goals for yourself.
Whether you want to pay off your credit card debt, save for a new car, or learn to cook so you can make more meals at home), it’s necessary to understand what you want to achieve.
With your goals in order, it’s time to create your budget and track your progress.
Track your spending (create a budget)
Tracking your finances is a great way to find spending patterns that you might not know about. Having a budget will help keep your finances in order and reduce financial stress while in school.
Your budget doesn’t need to be complex, but it should include the following items:
Income
Monthly fixed expenses (rent, tuition, etc.)
Monthly variable expenses (dining out, entertainment, etc.)
Note: Don’t forget to include things like textbooks, registration fees, and living expenses.
Be sure to review your bank accounts and monitor your budget every month to ensure that you’re staying on track and not falling back into old spending habits.
With more clarity in your spending habits, you can work towards the goals that you’ve set.
Build an emergency fund
Be prepared for unexpected expenses by setting up an emergency fund.
An emergency fund is a savings account with money set aside to help cover unexpected costs like medical expenses, car repairs, or unemployment.
Having an emergency fund in place is important for everyone, but it is especially important for university or college students who often live with very little financial flexibility.
Start by setting aside whatever you can afford, and add to it monthly until you have 3-6 months of living expenses saved.
Get a cashback credit card
A cashback credit card can be a great financial move, but it’s important that you practice safe credit to ensure you don’t take on unnecessary debt.
If you feel like you can manage your expenses and handle the responsibilities of having a credit card, then using a cashback credit card is a great way to earn cash rewards on everyday purchases that you make.
Use cash for fun
Building your financial future isn’t just about saving every penny you earn, it’s important that you find a healthy balance.
One way to do this effectively is to set aside a certain amount of cash every month for expenses that would fall into the “want” category.
By paying for these expenses with cash, you can more easily keep track of where your money is going — minimizing the risk of overspending.
Get the right advice
Have questions about any of the tips we shared? Schedule an appointment with one of our advisors today!
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