A College Student’s Guide to Creating a Budget, and Saving Money

I was sitting in my 4 o’clock class mentioning that I like saving money, so much so that I blog about it. One student whispered, “I wish I could save money.” At that moment I had an epiphany; students need a personal finance road map on how to save money through creating a budget.


I’ve been a college student twice now and know that most students are cash-strapped, broke, and feel like there is just no way on Earth they can possibly save any money. But they’re wrong. They may not be able to save a lot, but they can save something.

Step 1: Create a Budget

The first step is the hardest to take, but it’s the foundation for taking control of personal finances – creating a budget. Many college students have basic expenses; room and board (or rent and utilities), food, car expenses, book expenses, tuition, and insurance. By adding up the monthly basic needs figures, a person can figure out how much is left over each month.

Next, factor in a small savings amount – even if that amount is as pitiful as $5  or $10 a month, it’s the beginning of a small cushion in case a tire needs replacing or a library book gets lost.

The left over amount, what ever that figure may look like ($15 – $50 a month), can be allocated to “fun” money. Not wanting to sound like a total Scrooge, I know that most college students like going out on a Friday or Saturday night with friends. The fun money should cover one or two nights out a month, or more depending on cost and limiting yourself to drinking only water (hey, someone needs to be the designated driver, right?)

Step 2: Keep the Change

Small change adds up. Instead of it getting lost between the sofa cushions or left behind on the pavement, pick it up and save it in a jar. Hide that jar in a closet and within a matter of months you might find you’ve collected a small fortune. Great in case of minor emergencies. Or make it a point to save the change for the entire time you’re in school – it may amount to more than just a little left over.

To keep the change you’ve been squirreling away, roll it yourself. The 99-Cent Store sometimes cells packages of coin wrappers for .99-cents. It’s actually fun to spend a couple of hours counting the change you’ve collected over the months. It’s a good reminder than small changes really do matter.

Step 3: Cash in the Gifts

A college student’s most appreciated gift is cash. Depending on your family dynamics, ask your family members to give you cash instead of gifts. If you feel you can’t be trusted with a lump sum, ask them to open a small savings account in your name and store it there for emergencies.

If you know your family won’t go for the cash option, then ask for gift cards instead. Gift cards can be sold or bartered on sites like eBay or giftcardgranny.com. Any cash gift should be looked at as a way to save a bit of your “income.”

Once you’ve graduated college, you will want to revise your budget. But now, you’ll be able to save a larger portion of your income because you’ll hopefully be making a decent wage. Barbara Friedberg has a great post on financial tips for new college grads. The key to financial success is spending less than you earn and investing the rest.

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