Creating a budget in college can help you understand where your money goes each month, which is a good first step to take when you’re learning to manage your finances.
1. Calculate your net income
As the first step in creating your budget, you’ll want to calculate your net income, which is the amount of money you earn. Your income each term may be influenced by one or more of these three factors:
- Financial contributions from family members put toward your educational expenses
- Financial aid that you can apply toward tuition and fees, such as scholarships, grants, and student loans
- Your pay from a part-time job or federal work-study job and how many hours you work per week
2. List monthly expenses
Next, you’ll want to list all of your monthly expenses. You can make a list of all the things you spend money on in a typical month and the average cost of each item. Make sure you categorize these expenses, tagging everything as either a "necessity" or a "want."
3. Crunch the Numbers
Now that you've organized your expenses, it's time to crunch the numbers. Start by adding all your expenses together. Then, subtract that number from your monthly income. If the final number you get is negative, that means that you're spending more money than you make each month. If the number is positive, you have extra money to spend or put toward your savings and emergency fund.
4. Create a College Student Budget
Now that you've calculated all the numbers, look through your expenses to see what items you can adjust or cut from your list.
1. Cook for Yourself
By buying your own groceries, you can cut food costs and improve your diet with healthy, home-cooked meals.
2. Embrace Communal Living
You can save money by living with friends. Sharing an apartment with other people also lets you pool resources like transportation and groceries.
3. Shop at Thrift Stores
Thrift stores offer a convenient and low-cost way to buy clothes, furniture, and small appliances while also promoting sustainable living.
4. Use Student Discounts
Here are four student discounts that you need to check out:
5. Take Advantage of Campus Resources and Events
You can consult Humber's event calendar regularly for details about free food, concerts, movie nights, and networking opportunities.