College Money Guide: Top Tips for Managing Your Money in College

Leaving for college is a thrilling milestone — but it can also be a big adjustment. Dorm life is probably your first taste of independent living. While that newfound freedom is refreshing, it can also be financially challenging. 

Before you resort to living off instant noodles, let’s explore better ways to make your college budget work for you. 

How much does college cost in 2024? 

Understanding your college expenses is crucial for planning your finances and managing your money on your own. The total cost of higher education will vary widely depending on the type of school, where it's at, and your lifestyle. 

Here’s a breakdown of the key expenses to keep in mind: 

Tuition fees 

Tuition is typically the largest expense. For most college students, this isn’t an out-of-pocket cost, as financial aid — including scholarships, grants, and student loans — covers most (if not all) of the bill. 

According to College Board, full-time tuition and fees for the 2023-2024 academic year were: 

• Public four-year (in-state): $11,260 
• Public four-year (out-of-state): $29,150 
• Public two-year (in-district): $3,990 
• Private four-year nonprofit: $41,540 

Room and board 

Housing and meal plans are also substantial expenses, accounting for about 30% of your annual college costs. Whether you live on-campus or off-campus, costs will vary based on the type of accommodation and meal plan you choose. Not only that, but depending on the type of financial aid you receive, room and board may or may not be covered. 

College housing options typically include: 

• Dormitories. Most dorm rooms are double or triple occupancy with communal bathrooms. Single-occupancy rooms are usually limited and more expensive. 
• University apartments. Owned by the college, university housing offers multi-bedroom apartments that are more spacious than dorms. 
• Off-campus housing. Living off-campus in a rental house or apartment can be an affordable option when shared with roommates. 

Your choice of meal plan will also likely be affected by whether you live on or off campus. 

Books and supplies 

Textbooks and other academic supplies can add up quickly. While some courses may use free or low-cost materials, others require expensive textbooks. 

On average, first-year students spend about $1,200 at the campus bookstore. 

Personal expenses 

Your miscellaneous expenses will depend on your lifestyle, housing situation, and whether you have a car or use public transportation. These expenses might include transportation, personal care, entertainment, recreation, and decor. 

➢RELATED: Need Money Now? 6 Ways to Find Cash

Hidden costs 

In addition to the standard expenses, be aware of hidden costs that can catch students by surprise, such as: 

• Lab fees for science courses 
• Art supplies for creative courses 
• Fees for extracurricular activities and clubs 
• Travel expenses for study abroad programs 

5 tips to manage your money in college 

Managing your money effectively while in college can set you up for financial success both during and after your academic journey. Here are some essential tips to help you create a realistic budget, prioritize spending, and avoid excessive debt. 

1. Determine your monthly income 

First, you need to know what you're working with. Calculate how much money you regularly bring in each month. Include income or tips from a part-time job, work-study compensation, allowance, financial aid (if designated for living expenses), and support from family. 

If your monthly income fluctuates, base your budget on the average amount you expect to bring in. 

2. Create a realistic budget 

Next, estimate how much it costs to live at college for a month. Determining an accurate figure may take a semester of living on campus. Still, you can adjust costs month-to-month as needed. 

Financial aid covers some expenses, but you'll typically need to pay out of pocket for any: 

• Snacks and food outside your meal plan 
• Mobile phone plan 
• Subscriptions 
• Clothing and accessories 
• Transportation-related expenses 

Remember to review your budget regularly and adjust it if you find yourself overspending. Download an app like YNAB (You Need a Budget) or PocketGuard to help analyze your spending habits and remind you of upcoming bill payments. 

3. Prioritize your spending 

The goal of prioritizing your spending is to reduce how much money goes to non-essentials. Once you've identified your expenses, break them into "wants" and "needs." 

For example, you need a cell phone but not necessarily an upgraded plan with all the bells and whistles. Switching to a more basic plan could be one area where you can save. 

You’ll also want to identify any short-term or long-term financial goals. Short-term goals might include saving for a spring break trip or buying a new laptop, while long-term goals could involve paying off student loans or building an emergency fund. 

4. Avoid excessive debt 

Debt can accumulate quickly in college. Here are some strategies to keep it under control and build a positive credit history: 

• Use credit cards responsibly. Only charge what you can afford to pay off to prevent debt accumulation. Pay off the balance in full each month to avoid interest charges. 
• Understand student loans. Make sure you understand the terms and conditions of any student loans you take out. Federal aid and some private student loans have a deferment period while you’re still in college, but you should still only borrow what you need. 
• Develop a savings habit. Funnel any money you can into a savings account so you always have something to fall back on if an emergency arises. 

➢RELATED: How to Build Your Credit Score

5. Utilize campus resources 

Many campuses provide free or low-cost resources like libraries, fitness centers, counseling services, and career advising. Larger campus may even offer student healthcare services. Taking advantage of these can drastically reduce your expenses. 

You should also check with your school’s bookstore about any buy-back programs. If you keep your textbooks in good condition, you might be able to sell them back for a percentage of what you paid at the end of the semester. 

How to save money as a college student 

There are several ways to reduce your expenses while working toward your degree. 

Reduce your living expenses 

Compare the costs of living off-campus vs. on-campus. Would sharing a rental house with roommates be more cost-effective than a dorm room? Should you live at home with your parents for another year? 

Choose low-cost food options 

Food expenses can add up quickly, but there are ways to keep them in check without compromising nutrition. 

The most important thing you can do is to make the most of that meal plan! Keep track of those meal swipes, and don't let any go to waste. Even if you're too rushed to sit down for a meal, you can still swipe your card to grab some fruit or a takeout container to snack on later. 

When you stock up on snacks and quick meals (like ramen) for your dorm, shop with a grocery list to avoid overspending. Also, consider pooling resources with roommates to save money. 

➢RELATED: Eating Healthy on a Budget

Use campus shuttles and public transportation 

Having a car on campus can be more expensive than you might think, especially if you're the only one in your friend group with a vehicle. Think about it: you'll be the go-to chauffeur for all grocery trips and recreational outings. Even if your friends chip in for gas, you're still responsible for insurance and maintenance costs. 

The cheapest option is to leave your car at home and use on-campus transportation options. Most large universities have shuttles running from parking lots and dorms to the center of campus. You may also find walking or cycling across campus easier than fighting for a parking spot. 

Explore free activities and low-cost entertainment 

There's always something fun to do on campus. You just need to know where to look. 

Keep an eye out for flyers posted around campus or check your school's online event calendar for upcoming activities. Some campuses frequently host art shows, craft markets, festivals, concerts, jam sessions, sporting events, film screenings, and more. 

Also, ask your resident advisor for recommendations. The best RAs usually host events for their dorm residents throughout the year, even if it's just a meet-and-greet. 

Take advantage of your student discount 

You'd be surprised to learn how far your student status can get you in a college town! Many local businesses offer student discounts, helping you save on everything from restaurant meals to movie tickets. Remember to check for student discounts when shopping online, as well. You can save quite a bit on software, electronics, streaming subscriptions, insurance policies, and more. 

How to make extra money at college 

Explore opportunities to earn extra money while living on campus. Work-study positions tend to be flexible, allowing you to work part-time between classes. You could score a position relevant to your major, giving you some much-needed experience before graduation. 

Here are some other ways to bring in extra money as a college student: 

Find a part-time job near campus 

Businesses in college towns rely on students during the academic year. Whether you're interested in working as a barista, server, retail associate, or grocery stocker, you should be able to find a part-time job that fits your schedule. 

Start a side hustle or freelance gig 

You don't need to commit to a part-time job to earn extra money. Common side hustles for college students include tutoring, food delivery, grocery delivery, content creation, and freelance services like writing, proofreading, and graphic design. 

➢RELATED: 9 Side Hustles for Animal Lovers

Apply for financial aid 

If you're planning to apply for financial aid, consider all your options. Completing the FAFSA is the first step in applying for federal income-based loans. However, depending on your family's income, you may still owe a portion out of pocket. 

See whether you're eligible for any employer tuition assistance, scholarships, grants, or military aid. Consider private student loans if you've exhausted these options. Just remember that private student loans are treated differently than federal student loans. They're not eligible for student loan forgiveness programs, cannot be discharged in bankruptcy, and generally don't provide any hardship deferments. 

The best tips to save money in college I found on Reddit 

Reddit can be a great source of practical advice and creative solutions for college students looking to save money. The subreddits r/frugal, r/StudentLoans, and r/college are filled with real-life tips from fellow students who have navigated the financial challenges of college life. 

Here are some of the top tips I discovered on Reddit that can help you manage your finances and stretch your budget in college: 

Tip 1: Never buy textbooks 

Rather than buy your textbooks, explore rental options at the bookstore or check them out at your campus library. You might even find pdf versions available to download on sites like Library Genesis, OpenStax, Open Textbook Library, and ScholarWorks. 

Tip 2: Take more classes 

It may seem counterintuitive, but you could actually save money by maxing out the number of credit hours you complete per semester. 

Students are required to enroll in at least 12 credit hours to be considered full-time. Typically, you can take up to 18 credit hours before you’re charged extra. If you’re smart about your schedule, you could graduate early and save thousands! 

Tip 3: Delete the food delivery apps (unless you’re the one delivering) 

DoorDash and Uber Eats are convenient, but they’ll quickly drain your wallet. You’re better off deleting the apps and going out to eat with friends sparingly (no more than once a week). 

That said, food delivery does make a great side hustle when you need extra cash! 

Tip 4: Pack snacks 

Carry plenty of snacks and water with you around campus. If you’re a commuter and don’t purchase a meal plan, pack your lunch. It’s too tempting to stop for fast food between classes, but that habit adds up quickly. 

Tip 5: Join a club 

Find a recreational club to meet friends, attend club events (with free food), and go on university-sponsored excursions. You can find a club for just about everything, including: 

• Hiking 
• Kayaking 
• Camping 
• Orienteering 
• Fishing 
• Gaming 
• Cooking 
• Films 
• Photography 

A fun club can provide hours of free or low-cost entertainment — and you may even hone a new skill! 

Live your best college life (on any budget)! 

Living on your own for the first time can prove financially overwhelming. But you can manage your finances and make the most of a limited income with simple strategies to reduce college living expenses. When necessary, look for opportunities to earn extra cash and choose financing options that won't saddle you with lifelong debt.