A Guide to College Expenses and Budgeting

COLLEGE EXPENSES

August 1st marked the beginning of many high school seniors’ college journeys with the release of essay prompts from hundreds of schools across the United States. Although many students choose schools based on academic rigor, religious influences, sports teams, or social life, the cost of college tuition for families is one of the most important factors when deciding which school to select. According to a survey conducted in 2019, 80% of families say that financial concerns outweigh academic needs when choosing a college. Tuition costs at private and in-state colleges have been increasing at 3–4% every year, and stagnated household incomes can make these expenses a severe burden for many families.

Secondary expenses, such as transportation, books, dining, and personal expenses can often go overlooked. Although these costs are small, they can quickly add up over four years and make a college education more expensive than the initial financial aid package makes it seem. Taking the time to plan a college budget can help inform students and their families about the true cost of college, and make paying for it as stress-free as possible.

THE BUDGETING PROCESS

Before listing all of the expenses you will face as a college student (tuition, required textbooks, mandatory coffeeshop runs), you should have a discussion with your parents or guardian about who is paying for your college education, and how. Most families will pay some costs out of pocket and use a variety of other resources — scholarships, loans, or work-study — to cover the rest.

This is also a good time to begin considering which financial aid options you are eligible for. Many colleges will offer financial aid programs, and award scholarships based on a need and/or merit basis. You can also apply to thousands of scholarships listed in places like the College Board or Niche. Many of these programs are catered to specific backgrounds or interests, such as students interested in STEM fields, and can go a long way towards covering your secondary expenses. You can apply to take out student loans by filling out applications such as the FAFSA (The Free Application for Federal Student Loans), which have to be paid back with interest after graduating.

Once you have a good idea of how you and your family will be paying for college, it’s time to predict the expenses you will face and set a monthly budget for each one. Although these values can fluctuate, especially if you haven’t set foot on campus yet, predicting these costs will help you plan.

IMPORTANT EXPENSES TO INCLUDE IN YOUR BUDGET

• Tuition

The cost for tuition will probably be the largest expense in your budget, and will be paid for by scholarships, parent contribution, or student loans (see above).

• Housing and Dining

Nearly all colleges require first-year students to live in on-campus housing, and those expenses are usually found online. During your sophomore year of college, however, living off campus with roommates can be an attractive option to save money. Although rent, groceries, utilities, internet, and home supplies add additional expenses to your budget, living in a house or apartment can lower the overall cost.

• Textbooks

According to the College Board, a college student spends nearly $1,200 per year on textbooks and other required course materials. Some ways to reduce this cost can be renting or buying used textbooks, finding an online option, or buying an earlier edition.

• Transportation

No matter if you’re in a city, suburb, or rural area, transportation is another important factor. Students who are planning to buy a car should include the cost of insurance, gas, and regular maintenance in their budgets. Even without owning a car, public transportation and ride shares can be an overlooked expense.

And don’t forget about coming home on vacation! The average college student takes two trips home every year, and the cost for flights or a train trip need to be included.

• Personal Expenses

The cost of clothing, toiletries, and other necessities can quickly accumulate, especially for students that are not used to buying many of these products themselves. It’s important to try and stick to budget for these miscellaneous expenses, because it’s only too easy to go overboard when your favorite store is having a sale.

For more tips or ideas about constructing your budget, one student posted theirs online.

BEYOND THE BUDGET

Planning your college budget is one step towards being a prepared and informed college student. Being able to successfully juggle expenses for necessities and fun activities will leave more time to pursue schoolwork, friends, and your passions.