– A Simple Budget Plan for Students
Budgeting for college often means balancing a limited income while covering essential costs and unexpected expenses. Creating a simple budget can help you build better money habits and feel more in control of day-to-day finances. TCU’s Knowledge Base Budgeting Tool is an easy and practical way to create a simple budget plan for students.
What Should a College Student Budget Include?
When creating a budget as a college student, know that you’ll have fixed monthly costs as well as flexible discretionary spending. Fixed costs are expenses such as housing, food, phone, internet and app subscriptions. Flexible spending includes things such as entertainment and dining out. It’s wise to prioritize your essentials first and include some sort of savings in your plan.
How Do You Build a Simple Budget for College?
Budgeting can be simple if you follow a clear process. Start by adding up your monthly income, then list all your spending, including fixed costs and discretionary spending. If your expenditure is higher than your income, your budget needs help.
To keep your spending within your budget, set a limit on discretionary spending or the things you want but don’t need. Strive for a simple budget that’s easy to track. TCU’s Student Budget Calculator is easy to use and can help you sort out all the expenses you might face.
How Can College Students Manage Money with Irregular Income?
Managing your money while attending college can be difficult, especially if your income is irregular each month. Learning how to manage this fluctuation can make things easier. One approach is to base your budget on your lowest expected monthly income. This ensures that all your essential expenses are covered. During higher-income months, save the extra money as an emergency fund.
What Are the Most Common Money Mistakes College Students Make?
The most common mistakes college students make with money are:
- Not tracking small purchases
- Relying too much on credit
- Falling behind on payments
- Letting subscriptions and/or food delivery purchases add up
To avoid these mistakes, regularly check your account balances before you have insufficient fund fees or miss credit card payments. There are resources that can help boost your financial education. Knowledge Base offers a wealth of financial content, including a course on the basics of a college students’ budget.
How Can Students Avoid Overdrafts, Missed Payments and Financial Stress?
To avoid the financial stress of missed payments or overdrafts, deploy the digital tools that are typically available with your account. Using them will help reduce unexpected late fees as well as daily anxiety. For example, enabling low-balance and transaction email and text alerts will notify you when a transaction occurs and when your funds are low. Also, log into your account weekly to track your spending. Finally, set up automatic bill payments so you never miss a due date.
Making the most of your financial institution’s account alerts, bill payments and other automated systems can make a big difference in avoiding overdrafts, missing due dates and creating financial worry.
Why Is Saving Money in College Still Important?
As a college student, saving money should remain an important goal because it will help you develop a stronger savings habit that is smart and beneficial throughout your life. Save small amounts every chance you get; they may not seem like much, but they will add up over time. To make it easier, set up an automatic transfer to your savings account each month.
What Banking Tools Can Make Budgeting Easier for College Students?
Many financial institutions offer mobile banking, which can make budgeting and money management easier for college students. Using a mobile app lets you track everyday spending, transfer funds, make deposits and save quickly for short-term goals.
For example, the TCU Mobile App lets you effortlessly access your TCU accounts. You can also check your credit score, apply for loans and view free financial education courses through Knowledge Base.
A Simple College Budget Example To Get Started
Creating a simple student budget makes managing your money easier. For example, say you have a $1,000 monthly income at college. You’re in a dorm so you don’t have to pay rent, but you must buy your own food ($400 a month), pay for your phone and subscriptions ($150), do laundry ($75), use transportation ($75), and purchase miscellaneous school supplies ($80). That’s $780 in needed spending, leaving you $280 in discretionary spending per month. Divide $280 into four weeks, and you’ll have $70 to spend each week.
How TCU Can Help
Travis Credit Union is focused on your financial wellness, which includes managing your money in college. Our Free Checking or Access Checking accounts are great for your everyday spending. You get a debit card for fast payments and have access to the TCU mobile app, which you can add to your digital wallet for even more convenience.
When it comes to saving money, a TCU Target Savings Account is the perfect tool for setting aside a little money each month. To stay on top of all your TCU accounts, use the budgeting and expense tracking tools found in the TCU digital banking system. You can monitor your balances, set up account alerts, make quick transfers, enroll in direct deposit and make deposits via the mobile app.
Explore all the ways TCU can help make your college years financially simpler. We are here for your entire financial journey. When you’re ready, let TCU show you how to buy a new car, purchase a home, save for retirement and more. Because at TCU, Knowledge is Power.