Tips to manage, budget your money in college | 2024 Student Resource Guide
No matter where a student is in their college education, managing money can be difficult, but learning how doesn’t need to be.
The Student Money Management Center, located in University Administration Building 130A, provides student financial help, offering advice on saving, budgeting and credit awareness. The center offers one-on-one appointments, seminars and presentations to assist students in financial literacy.
Financial literacy coordinator Amelia Barber gave tips on how to save money while enrolled in college and be financially prepared for school and the future.
Build a budget
Budgeting is the foundation of money management because it’s important to know where money is going, she said. Budgets can be created using digital or physical spreadsheets, but Barber said depending on the student, different methods also work. The envelope method, for example, separates cash into different categories for different expenses.
“Budgeting, in general, I think it’s a very boring word and it sounds a little scary, and it does take discipline,” Barber said. “But, I think if you try to shift that perspective, I think it can give you freedom.”
Reduce costs
Barber said students looking to reduce expenses need to understand the difference between fixed and variable costs. Fixed costs are monthly payments, like car insurance, whereas variable costs can fluctuate from month to month, like groceries.
“Trying to cut down on the variable costs is going to be key,” Barber said. “We try to put a ton of tips and tricks on our Instagram as far as how to bring that grocery cost down because I know prices are high right now.”
The center’s Instagram, @utamoney, features money management tips, helpful reminders and surprise giveaways.
Barber said reducing variable costs takes effort, but finding creative ways to save money can help students in the long run. Shopping for items on sale at a local grocery store, using coupons and buying in bulk at places like Sam’s Club and Costco are ways to reduce costs.
While in college, Barber said she and her roommates would go to Sam’s Club and split the cost of groceries.
Pay off loans
The most common student loans are subsidized and unsubsidized loans offered by the federal government after students submit a FAFSA form. Barber said unsubsidized loans accrue interest while a student is in college, whereas subsidized loans will start to accrue interest after they complete college.
Barber said after receiving a financial aid package, it’s important to not “overborrow.” Instead of immediately accepting and relying on student loans, she said to wait and look for other pathways to pay for college before relying on loans.
“Wait as long as you can to accept the loans,” Barber said. “They’re always an option as long as you’re enrolled half-time, so maybe we don’t take them out in September if we don’t need them. They’ll always be an option if you run into financial trouble in, you know, October or March.”
Stock up on savings
Barber teaches students about the 50-30-20 method, which puts 50% of money toward needs, 30% towards wants and 20% towards savings. She recommends putting a minimum of $500 into an emergency fund for unexpected expenses and increasing that fund by at least $50 each month.
“What we don’t want is for students to have an unexpected expense come up and then rely on credit to get them through, and then to basically never be able to catch back up,” Barber said. “It’s incredibly important to at least have an emergency fund.”
Most students hold emergency funds in a checking account, but if an expense becomes too big, reaching into the thousands, Barber recommends putting money into a high yield savings account that will gradually grow with interest over time.
Make use of campus amenities
Students have a variety of campus amenities to use at UTA. Barber said she has met with students who are unsure how to pay for food or entertainment, but resources like meal plans, the Maverick Pantry and the Maverick Activities Center are affordable options for food and other commodities.
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