How to Budget for College Spending

Heading off to college is more than just an academic adventure—it's also a crash course in financial independence. Today, with rising living costs and changing economic conditions, mastering the art of budgeting is an essential skill for every college student.

According to the Wall Street Journal, median spending among college students has jumped by 38% from 2002 to 2022. More than ever, it's important to build solid money habits. The earlier you build these habits, the more financially stable you'll be throughout your college years and beyond.

Here at Frontier Bank, we've put together some practical budgeting tips for college students to help them navigate their money.

1. Understand Your Cash Flow

The first thing you need to do is keep track of your money. Record all your income sources—whether it's earnings from part-time jobs, scholarships, or financial aid. Remarkably, 44% of students work during the academic year, and a whopping 86% pick up jobs over the summer. Some students, about 25%, even manage full-time work alongside full-time studies.

As for expenses, they're not just about tuition and books. The average college student spends about $547 each month on groceries and an additional $342 on eating out. Not to mention, there's also spending on clothes, which averages around $158.98, and personal care, which adds up to about $270 annually. List these expenses and subtract them from your income to figure out your monthly budget.

2. Plan for the Extras

It's not just about covering the basics. Nearly 46.1% of college students carry credit card debt, with nearly 30% owing more than $2,000. Avoid falling into this trap by planning for unexpected expenses when creating a budget.

Learning the difference between 'needs' and 'wants' is important. Consider using any extra money to build an emergency fund or reduce your tuition debt faster rather than splurging on non-essentials.

3. Utilize Budgeting Tools

Make your budgeting easier with tools like our Frontier Bank mobile app. Real-time access to your accounts lets you track your spending and stay on top of your finances anywhere, anytime. Our app features include:

• Free Checking Account: No minimum balance, no monthly fees, and free access to online and mobile banking.
• Online Banking: Easily monitor your account activities, transfer funds, and pay bills.
• Mobile Deposit: Quickly deposit checks from anywhere, perfect for those birthday checks or refund amounts.

4. Regularly Review and Adjust Your Budget

Each semester might bring new financial challenges or opportunities. Regularly reviewing and adjusting your budget is crucial. With changes in your income or expenses, tweak your budget to ensure it still works for you with tools like our student budget calculator. Consider other banking tools you may need to be financially successful.

Managing your finances in college doesn't have to be scary. Frontier Bank is here to help with tools (like financial calculators) and accounts designed specifically for students like you. Start your collegiate financial journey with confidence by reaching out to Frontier Bank now.

Sarah Weber
Video Banking Manager
Phone: 712-472-2537
Sarahw@frontierbk.com