As your student nears college age, teaching them some more advanced lessons about money management and budgeting will help them cope with increased expenses. Hopefully you have given them some basic lessons on not spending more than they take in each month, and sacrificing some short-term purchases in exchange for longer-term big ticket items.

A student's expenses in college are a mini-version of what they will face in the real world after graduation. Some new things they will need to budget for include:

Travel expenses
(hopefully for a visit home... but definitely for Spring Break with their friends)

Entertainment

Food

Clothes

Sports and sports equipment

Phone bills to home

Haircuts and new style options

Medical and dental fees

Insurance

Budgeting Suggestions for Students

Some basic budgeting suggestions to begin dealing with this increased list of expenses:

Make a list of set expenses (car payment, insurance, medicines etc).

Keep a journal for a few days of everything that you spend - this includes items as big as text books or music CDs and as small as gum or pop.

Add up the total amount of money you have coming in each month.

Build a visual representation of your budget. Put in the fixed expenses first. Maybe your car payment takes up half of your pie chart. It is easier for most students to assign priorities when the visual representation is in front of them.

Budgeting Suggestions for Parents

Some suggestions for parents during this process:

Use a monthly phone card in a denomination suitable to cover calls for that month.

Never make the final budget for your student until after a few months into the semester. Expenses and habits change greatly as your student first begins to explore their new world.

Be realistic about the meal plan option you purchased. You didn't like eating the food much and your student probably won't either. This will increase expenses on microwavable items over time.

Don't purchase student's clothes ahead of time. Let them see what's in style first. If you are lucky, second-hand clothing will be popular. If all else fails you can always ship some clothes from home later.

Use online banking! This allows parents and students to share information, the budgeting process, and makes transferring funds very easy.

 

 

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