College Tips

Four budgeting tips for college students, plus a college budget template

When we think about our future careers, we often focus on gaining skills that will help us earn money. But how many of us are taught how to manage that money?  

For most students heading to college, financial literacy is not part of the standard curriculum. However, understanding how to create a budget is crucial to avoiding financial stress in college and beyond. 

An unofficial survey of students on the UWL campus in this video showed more knew about their favorite celebrities than financial terms like “credit score” or "student loan default.” 

The reality is that, while many students don’t come into college with a strong understanding of financial management, it’s essential to learn and take control of your spending and savings. College expenses go beyond tuition — there’s housing, food, transportation, clothing, utilities, entertainment and more. These small costs can quickly add up, so budgeting becomes vital. 

The It Make$ Cents! financial literacy program at UWL encourages students to take charge of their finances. They offer valuable tools and information to help you plan for success — personally and professionally. IMC financial peer mentors are available to meet with students throughout their college experience and assist with financial questions, budgeting, loans, debt, building credit and investing. UWL students can book appointment through the booking page. 

Why should I care about money management? 

Managing your money wisely is more important than ever. According to a recent study, 61% of Americans live paycheck to paycheck, and the average family carries nearly $8,000 in credit card debt. 

Money problems can also affect relationships — financial stress is the second leading cause of divorce.  

By learning how to manage your money, you’ll not only avoid financial pitfalls, but you'll also impress future employers. Many companies seek employees who are financially responsible, knowing they’re likely to manage other aspects of their work with the same care. 

Budgeting tips for college students 

Here are four essential budgeting tips for college students to help you make the most of your finances: 

• Think about your goals in life and plan accordingly 
  Set SMART goals — goals that are specific, measurable, achievable, relevant and time-bound. Watch this inspiring video on aUWL alumna who set goals and took steps to pay off about $42,000 in student loan debt in just one year.
  
  
  • Specific: “I want to work as a server at a restaurant in the La Crosse area.” 
  • Measurable: “I will apply to three restaurants.” 
  • Achievable: “I will update my resume to improve my chances.” 
  • Relevant: “This will help me earn money while in college.” 
  • Time-Bound: “I will apply to the three restaurants by the end of next week.”
    
    
• Start building credit
  Establishing a good credit history is a crucial step in securing your financial independence, and it starts with understanding how credit works. Reach out to a trusted advisor — whether a mentor, banker or guardian — to learn more about credit and how it can impact your future. Your credit report is basically a financial history that follows you throughout your life, impacting decisions like renting an apartment or purchasing a car.  One of the best ways to build credit is by starting a borrowing relationship early. At 18, you can apply for credit cards designed specifically for students, often with lower interest rates. It's important to remember that debit cards do not build the same credit. And be cautious when applying for credit cards, as some may come with high interest rates that can lead to debt if not managed carefully. Responsible use of credit now can pay off in the future, making it easier to secure loans and achieve your financial goals.  
  
  
• Create healthy money habits
  Avoid impulse spending by sticking to a budget. Plan out your spending and set aside money for savings. Small changes now can lead to big financial benefits down the road. 
  
  
• Take initiative to learn
  Educate yourself about finances through YouTube videos, podcasts, and articles. The more you know, the better equipped you'll be to manage your money. 
  

How to create a budget

Creating a budget doesn’t have to be complicated. Here are some simple steps to help you get started: 

• Overestimate your expenses 
  When budgeting, it’s always a good idea to overestimate your expenses. This ensures you have enough money to cover unexpected costs. There are many helpful online tools and apps to help manage money.  
  
  
• Underestimate your income 
  Your income, especially if you work part-time, may fluctuate. For a more accurate budget, calculate your net pay using a paycheck calculator like the one found here: Paycheck City Calculator. 
  
  
• Build an emergency fund 
  Set aside money in an emergency fund for unexpected expenses, like car repairs or medical bills. 
  
  
• Set saving goals 
  Aim to save at least 10% of your income each month. Common savings goals might include building an emergency fund or contributing to a retirement account. While college may feel like an early time to focus on retirement savings, starting now can have significant benefits. The earlier you contribute to a retirement account, the more time your money has to grow through compound interest, setting you up for a stronger financial future. Even small contributions made early on can have a big impact down the road. 
  
  
• Use separate accounts 
  Having separate accounts for checking and savings will make it easier to track your spending and savings goals. 
  
  
• Track your spending 
  For one month, track all your expenses using a budgeting worksheet like this one: Budget Worksheet. Use this information to plan your budget for the following month. If you have occasional expenses, like car maintenance, categorize them as “other expenses” for that month.
   
• Use a college budget template 
  For an easy way to stay organized, use a college budget template.

About It Make$ Cents! 

It Make$ Cents! is a financial literacy program at UW-La Crosse. It provides students with the knowledge and resources to navigate the unique financial challenges of college life. The program offers workshops, one-on-one consultations, and resources to help students understand scholarships, budgeting, credit, and other aspects of financial wellness. By equipping students with financial skills early in their careers , It Make$ Cents! aims to help them achieve lifelong financial success.