Students blog

Managing finances as a college student living off-campus can be daunting, but with careful planning and discipline, you can stretch your dollars and maintain financial stability. Here’s a comprehensive guide to help you budget effectively.

1. Calculate Your Income

The first step in budgeting is knowing how much money you have. This includes:

• Income from Part-Time Jobs: Calculate your monthly earnings.
• Financial Aid and Scholarships: Include grants, scholarships, and student loans.
• Support from Family: If applicable, account for regular contributions from family.

Understanding your total monthly income sets the foundation for creating a realistic budget.

2. Track Your Expenses

Keep track of all your expenses to understand where your money is going. Use apps like Mint or YNAB, or maintain a simple spreadsheet. Categorize your expenses into fixed and variable costs.

• Fixed Costs: Rent, utilities, internet, transportation (car payments or public transit passes), insurance, and tuition fees.
• Variable Costs: Groceries, dining out, entertainment, clothing, and other personal expenses.

3. Create a Budget Plan

Based on your tracked expenses, create a detailed budget. Allocate funds to each category and prioritize essentials.

• Rent and Utilities: This should be your top priority. Aim to keep rent around 30% of your monthly income.
• Groceries: Plan meals and shop smart to avoid overspending. Look for sales and use coupons.
• Transportation: Factor in gas, maintenance, and insurance if you own a car. Consider public transportation as a cost-effective alternative.
• Miscellaneous: Set aside a fixed amount for entertainment, dining out, and other non-essential expenses.

4. Cut Unnecessary Costs

Identify areas where you can cut back. Consider these tips:

• Cook at Home: Dining out frequently can drain your budget. Cooking at home is healthier and cheaper.
• Use Student Discounts: Take advantage of student discounts for everything from software to public transportation and entertainment.
• Limit Subscriptions: Assess your subscriptions (Netflix, Spotify, etc.) and cancel any that you don’t use regularly.

5. Build an Emergency Fund

Set aside a small amount each month into a savings account for unexpected expenses. Aim to build an emergency fund that covers at least three months of living expenses. This fund will provide a safety net and reduce financial stress.

6. Monitor and Adjust Your Budget

Regularly review your budget and spending habits. Adjust your budget as needed to stay on track. If you notice you’re overspending in one category, compensate by cutting back in another.

7. Seek Financial Advice

Many colleges offer financial literacy programs and resources. Don’t hesitate to seek advice
from financial counselors available through your university.

Budgeting as a college student living off-campus requires diligence and foresight. By calculating your income, tracking your expenses, creating a budget plan, cutting unnecessary costs, building an emergency fund, and regularly monitoring your budget, you can manage your finances effectively and ensure a stress-free college experience. Remember, the habits you develop now will serve you well into your financial future.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

Have you ever felt like every year, your dollars continue to buy less and less at the grocery store? You wouldn’t be alone in this feeling as many consumers across the country are burdened with the lingering effects of higher-than-normal inflation – the increase in overall prices. Even if you haven’t experienced a major increase in your food bill, you may still notice that the amount of goods you receive for the same price has decreased: this is a process dubbed “shrinkflation.” 

As college students faced with already heightened costs of education, it is important to take every step we can to save money while living on campus. One of the best ways to do this is to take control of one of the main expenses incurred throughout our college experience: groceries and food. 

While it may not seem like it, small changes in the way we shop can lead to exponential savings in the long run. If you find yourself feeling the pressure of increasing prices at your local supermarket, here are some ways to potentially trim your grocery bill and save some cash. 

The first thing I will say is to stay basic. Grocery stores are carefully crafted to lead you through high-margin items into essentials like milk and eggs. So, while the 6 pack of chocolate chip cookies sitting in the bakery section may look tempting, it helps to establish a list of things you need before visiting (if you are craving them, baking them from scratch is way cheaper). 

Another thing to do is to think cost-per-unit. This is something I noticed not too long ago and has changed my shopping process entirely. Instead of comparing prices, look at the cost-per-unit of the product and decide whether you are willing to pay a premium for one product over the other. Moreover, buying in bulk will often yield savings. Pantry staples like rice and spices can often be bought in seemingly absurd proportions, but making the upfront investment can be way cheaper than buying a bag that will last you two weeks. 

And finally, never discount private label brands. For those unaware, private labels are products that are manufactured and branded by the retailer you choose to shop at – think Great Value (Walmart), Kirkland Signature (Costco), and everything in Trader Joes. Being made by the retailer means that the company experiences cost savings which they then pass onto you, the end customer, to stay competitive. In my experience, most private labels of essential goods rarely differ in quality from name brands.

In conclusion, while inflation and shrinkflation are challenging realities, there are practical strategies to manage your grocery expenses. By planning ahead, comparing cost-per-unit, buying in bulk, and swapping to private-label brands, you can stretch your dollars further. As college students, adopting these habits not only eases financial pressure but also instills smart shopping practices that will benefit you long after graduation. Embrace these tips, and you'll find that a little effort can lead to significant savings, making your college experience more affordable and enjoyable.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

With the steadily rising cost of tuition, it is becoming increasingly vital to understand the financial implications of pursuing a degree after high school. From the year 2000 to 2021, the average cost of tuition for four-year schools was driven up by 69% due to a variety of economic factors. But what does this mean for those currently enrolled in, or applying to pursue, a four-year degree? The bottom line is that when it comes to considering going to college, education is an investment and must be tackled as such – especially if you intend on taking out loans.

Disclaimer: The information provided on this blog is for general informational purposes only. It does not constitute financial advice and should not be relied upon as such. Before making any financial decisions, you should consult with a qualified financial advisor who can assess your situation.

The process of funding your college degree will vary drastically depending on your situation. Moving to a university to study will generally be expensive for many; however, scholarships and grants are given based on high school academic performance (GPA, standardized tests), extracurriculars (sports, clubs), and financial need. Beyond these, there are many other ways to support your expenses before relying on debt.

Applying for a job sounds obvious, but many students shy away from the idea. I have spoken to many college students who are under the impression that working on campus is a threat to their education, consuming time and adding more tension to the already burdensome schedule of a college student. While this may be true in some cases, there are plenty of opportunities out there that offer a flexible work environment while supporting a student in their education.

“Work Study”, or FWS, is a need-based federal program that aims to support students financially while allowing them to gain valuable work experience. In my experience, I’ve seen work-study students employed in administrative departments, gyms, and other facilities. The program is based on the idea that eligible students are on a full-time schedule which is reflected in the flexibility of scheduling. More information can be found on studentaid.gov.

Alternative sources of employment can also include remote work or part-time shifts at surrounding campus businesses. It is possible to find remote work through LinkedIn and other career platforms that can support a flexible work schedule. Personally, working as a Campus Ambassador for Pearson gives me a chance to support my college life while working on campus. To explore opportunities that you may be eligible for, it is worth a visit to your university career center for advice on how to apply and prepare for recruitment. Additionally, businesses on or near your campus may be looking for help. It is worth stopping at local companies you are interested in working for or have prior experience with to see if they are looking for part-time employees. Moreover, if you work a summer job, saving most of your income will benefit you during the year as well.

Another way to look at covering the cost is if you can’t increase your income, decrease your spending. There are many ways to do this, but I would recommend:

• Tracking your monthly expenses
• Prioritizing essentials
• Limiting dining out, entertainment, and shopping
• Cooking at home

These are four habits that have allowed me to fund a significant portion of my college experience myself. However, it is also important to create a healthy balance to make the most out of your college experience. Understand that violating your budget in college occasionally is often negligible and sometimes inevitable – it is the habits that stick. Ultimately, that idea goes for both sides of the coin. As I learned in my finance classes, compounding has drastic effects in the long run. Therefore, making consistently wise financial decisions is a key step in obtaining a college degree.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

From tuition and housing to food and entertainment, college is expensive! It seems like everywhere you look is somewhere you have to spend money. To help with expenses, many full-time college students have jobs, which can make it difficult to manage your schedule and maintain academic success. Sometimes you may feel like you’re putting too much time toward one, and not enough time on the other. No matter your situation, we could all benefit from some cost-saving tips. Here are three tips to help save money while in college!

Attend Events on Campus

At the beginning of each semester, a lot of colleges hold free on-campus events! These types of events aim to help new freshmen become more comfortable in a new environment. It helps the new students meet other people, get to know the campus, and learn about on-campus groups (i.e. sororities/fraternities and clubs). These events are not only for new students but are often open to returning students. While these events are a great way to get involved with your campus community, there are often free giveaways and swag items up for grabs. From t-shirts to bags to notepads to mechanical pencils, there is a lot of free stuff being given away. As the semester goes on, keep a lookout for more free events on campus. Get involved with on campus events and enjoy the freebies which can help you save money, too!

Take advantage of the Meal Plan

Many colleges require students who live on-campus to select a meal plan. Even if you live off-campus, you can take advantage of this! Especially if you are required to pay for it, you might as well use it! This saves you from having to spend extra money on groceries and having to go out to eat. Most colleges also have multiple meal plan options for students to pick from. Starting out it may be difficult to know what meal plan will work best for you, but you will quickly learn how to maximize your plan and can always adjust the next semester. This way you save money and eat the food you want to eat, whether it be on campus restaurants, in the cafeteria, or at home.

Borrow or Rent Textbooks

In my experience, many teachers use presentations to teach instead of closely following the textbook. That being said, this doesn’t mean textbooks are useless and never required. There are professors who still rely heavily on their textbooks, and even if the professor doesn’t really use the textbook, it can be a great resource for studying and learning more about a topic. The one drawback to physical textbooks, however, is that they are pretty expensive. Instead of buying all new textbooks, try renting them or using a digital eTextbook format. I have found that eTextbooks are available for less than half what the textbooks cost and have other great features such as audiobooks, study tools, and video for on-the-go learning.

From tuition and housing to food and entertainment, college is expensive! It may seem like everywhere you look is somewhere you have to spend money. By using these three tips, you can save some money and still get the full college experience!

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

Budgeting in college can be very hard. With the world at your fingertips, new events every day, and the convenience of fast food, saving money in college almost feels impossible. However, there is hope. With a few quick lifestyle changes, you can easily go from pinching pennies to having enough savings to survive when you graduate.

Keep Track of Your Spending

Some bank apps make it really easy to do this, but even if you just need an excel sheet, keeping track of the money you’re spending can be a gamechanger. When you are constantly writing down what you're spending, it causes you to be more cautious of how much you are spending monthly. Suddenly, a $7 coffee every other day doesn’t seem as tempting, and eating in allows you to spend more money in the long run-on things/experiences that will mean more to you than the late-night Canes run. Pick and choose what’s more important and keep track of what your weekend meals add up to.

Set A STRICT Budget

And no, this doesn’t mean transferring money out of your savings every time your monthly budget runs dry. In order to save money in college, you have to create a budget and stick to it. My rule of thumb is 40% savings, 60% checking, then dividing that up into gas, groceries, bills, wants, and needs. The important thing is sticking to what you have set at the beginning of the month and not going over it. When you go over, you are already setting yourself up for a bad month to follow. When you go under, you’re able to spend more money where you want to in the coming months.

Be Intentional

It is so easy to spend money when you aren’t thinking about it. Small purchases for $5 or $10 can seem like nothing, but then all of a sudden you’ve spent $100 in one weekend, and you didn’t actually enjoy most of it. It’s so important to spend intentionally, buying things only when you need or have money to. Window shopping always turns into real shopping, and “looking around” is always too tempting. It’s easier to just not go to the mall than to convince yourself not to spend the money once you’re there.

Take advantage of FREE

People know college kids are struggling. Whenever there’s an event on your campus with free food, take advantage! Eat at the dining hall when you have passed your allotted amount for eating out this month. The food might be less tempting than your favorite take-out place, but this is the one time in your life you will have access to free and made meals, so save that money and suffer through it! Dining hall pizza is always better than being broke.

Give Yourself Grace

My final tip is to give yourself grace when you don’t follow all of this perfectly. We are all struggling with finances, and money seems to never be enough, and it’s ok to have a little less in your checking account than you’d prefer. This is also a time where you can fully focus on being a student with few responsibilities. Go out with friends, make memories, and don’t be so hard on yourself when it comes to your money spending. Maybe just opt for the cheaper restaurants every so often and go thrifting for outfits you’re only going to wear once anyways. That dress is so cute for a Taylor Swift concert but won’t be in your calculus class.

Overall, college is hard enough, and not having enough money to feel comfortable with your spending makes it even harder. Being intentional, limiting your spending, and keeping track of it will make living in college on a small budget easier. But remember that you won’t always do this exactly how you want, and that’s okay. You are doing hard things, and you should celebrate that instead of beating yourself up for spending a little too much on Celsius. Do your best and check your bank account often, and you’ll be okay.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

“I’m broke!” might just be the most common statement made by college students. College is a major expense, but there are many ways to still have fun and be involved without breaking the bank!

Take Advantage of Student Discounts

Did I hear discounts? Yes! There are many businesses that offer discounts for students. From clothes to electronics to movie theaters to theme parks, retailers are happy to support students. Don't be afraid to ask about available student discounts.

Apply For Scholarships

I know it can seem daunting to write essay after essay about why you deserve a scholarship, but organizations want to help students with their financial needs! Sitting down for a couple of hours and submitting applications can make all the difference to offset college costs... and some scholarships don’t even require essays! Make sure that you check with your school’s financial aid office for specific scholarships related to academic performance, athletics, or extracurriculars.

Give Yourself an Allowance

Learning how to balance your spending is an important life skill. If you have a job, calculate how much money you make per month and allow yourself a maximum amount to spend out of your income. If you do not have a job, allot a specific amount you can spend each month or consider finding a job on campus if you have enough time in your schedule. There are usually many opportunities to work at on-campus coffee shops, the library, or dining halls. Check out your school’s employment opportunities for more information. Be sure to track your spending and progress for motivation!

Open A Savings Account

A savings account is a great way to store your money in a secure location, limit spending (remember your allowance!), and earn interest. Keeping your savings in an account ensures access to your funds in case of an emergency, while intentionally separating your spending money from what you are trying to save. Investigate savings accounts without minimum balance amounts and no monthly fees to save even more.

Investigate E-Textbooks

It is no secret that college textbooks are expensive! Many college textbooks are available in a more budget-friendly eTextbook format – which are often less than half of the cost of the print version. I’ve had the opportunity to subscribe to my eTextbooks, available in Pearson+. This has been a great way to save money on textbooks. For just $10.99/month you have instant access to your eTextbook, videos, and study tools. With the Pearson+ mobile app, you can access your textbooks from anywhere!

Your college years can be challenging in many ways and managing finances can top the list at times. Take the time to plan the money management strategies that work best for you. The habits you build will serve you well both throughout your college experience and after graduation.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

As I’m nearing the end of my undergraduate career, I’ve realized there are so many things I want to do, and it seems like they all require money. It’s incredibly hard to save money when you’re a student working minimum wage, especially when you’re experiencing “adult money” for the first time.

When I got my first job, I spent my first paycheck almost immediately. This was money I earned for myself and wouldn’t feel bad for my parents when I used it. This mindset made it so my paychecks were wrung dry hundreds of times faster than the amount of time I spent to earn that money. The money wouldn’t last, and I’d use it on large handfuls of small daily purchases like coffee or boba. My poor money spending decisions left my pockets empty and I began to realize I would never reach my larger goals, such as going on an international trip or affording my own place, unless I figured out a way to start saving.

Time is Money

What I began to do to save money included changing my mindset, purchases, and “piggy bank”. Let’s say I make $15 an hour and a single drink at a cafe costs around $5, sometimes much more. I realized that buying only three drinks would translate to me working for one hour. Once I started looking at purchases in terms of my time and effort, I made less of the unnecessary “luxury” purchases.

Buy in Bulk

Another thing I would do is buy “in bulk”. Rather than buying one drink, I’d buy the ingredients for it and make it myself. The $20 spent on 4 cups of coffee could be stretched further on groceries that would equate to a month’s worth of coffees.

Cut the Card and Correct with Cash

I also noticed that my primary mode of payment was my bank card, which made it too easy to overspend. I’ve rarely carried cash since the start of the pandemic, so I began to go to my bank and take cash out of my accounts. I’d then take the cash and place it in a small notebook that I keep out of sight. It helps to get newer dollar bills that are fresh and clean. It makes me want to keep them! By doing this I prevent myself from spending the money that is locked away in my room, and I occasionally even forget about it which makes for a nice surprise later. This action helped me curb my online spending, too.

These are small changes in my lifestyle that have resulted in a satisfying savings amount, and I look forward to seeing how much I can save up by the end of the year.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

College is an important time in many people’s lives. For some, it is the first time they live independently and have bills to pay. The habits you form in college will impact your habits in the future, especially when it comes to money management. It is important to develop good practices and habits when it comes to your finances because what you do in college can either put you ahead in life or hold you back. Here are four topics to think about and/or actions to take while in college that will prepare you for the future.

Understand Student Loans

We can’t talk about how to effectively manage money in college without talking about student loans. Too many students go to college and agree to take out loans, without knowing the terms of the loans or realizing the impact these loans can have on them later in life. Every college student should work part time to make some money and gain work experience. You should aim to pay for as much of your living and tuition expenses as possible.

Once you have a job and steady income, you can decide whether you will need to take out student loans, and, if you do, how much you should take out. Pay close attention to the interest rates on loans if you do take them out. Look for loans that have less than 5% interest rates. If interest rates are over 5%, you should try to look at alternative options. Generally, federal loans will have much lower interest rates than private loans and you should look here first. Additionally, you can look for opportunities such as scholarships and grants to help pay for the costs of college.

Brains in Budgeting

While working part time in college and paying bills, you should begin to track your income and expenses. This is generally referred to as a budget or cash flow analysis. You can make a budget in Excel, on a Google spreadsheet, on paper, or you can use a budgeting app such as Mint, Personal Capital, or EveryDollar.

When making a budget, you will want to split it into income and expenses. In the income section, list the paychecks you receive from work, income from side hustles and investments (if applicable), and cash gifts. In the expenses section, choose categories that apply to your situation such as housing, utilities, transportation, food, etc. Once you have chosen your categories you can add subcategories underneath. For example, rent and household supplies could go under housing; electricity, water, and internet could go under utilities; gas and car insurance could go under transportation; and groceries and eating out could go under food. It is important to track your income and expenses, so you know where your money is going.

Build an Emergency Fund

If you have discretionary income remaining after paying for living expenses and tuition, focus on building an emergency fund with 3-6 months of expenses. This will ensure that you are still able to pay your tuition and bills in case you are between jobs. You can keep your emergency fund in a money market or high yield savings account.

Start Investing Now

Once you have a fully funded emergency fund, you can consider investing. The sooner you start investing, the longer your money will have to grow. It is important to get in the habit of saving and investing and this can start in college. Even if you are only able to invest $20 a month, this will start the habit of investing. Since you are young and in a low tax bracket, consider opening a Roth IRA so your money can grow tax-free. You can open a Roth IRA at a brokerage firm such as Fidelity or Vanguard. I recommend investing in a total stock market index fund and putting in the same amount of money each month.

Doing things such as minimizing student loan debt, budgeting, building an emergency fund, and investing in college can help put you ahead in life and set you up for success in the future. It is important to build these habits in college so you can graduate in a good financial position and be prepared to manage more money after college when you are working full time and no longer must pay for school. If you can learn and implement these important lessons in college, you will look back one day and be glad that you started early.

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started! 

As a college student, money management can appear daunting. It is natural to brush it off as a topic which only concerns adults. I am currently a freshman in college, and ten months ago, I had no true interest in investing. However, during quarantine, my dad began to explain the perks and advantages of investing. It certainly sounded attractive, but how was I supposed to invest my personal money when I did not even know the basics?

I am excited to share four steps to encourage you to invest and lead you to long-term success.

1. Identify a trading platform that fits your needs and interests. Charles Schwab, TD Ameritrade, and Robinhood are reliable and safe companies, and I know many people using each. For a beginner, Robinhood is the easiest platform to use. All three of these platforms have little to no fees for investing.
2. Open a Roth IRA account, as well as a normal brokerage account. An IRA is designed for long-term investing, which usually means your money stays in the account until retirement. A brokerage account gives you access to invest and withdraw your money at any time. Opening both an IRA and a brokerage account allows you to do long-term investing and short-term investing.
3. Create an investment plan. At this point you are ready to invest! This is an exciting time in your life, especially if you are a first-time investor. It is important to identify your goals and purpose for investing, and then to plan and research based those goals.
4. Identify investments that interest you. Look for steady, reliable, well-performing companies that are in good financial standing and have a positive outlook for the future. As Warren Buffett says, “if you wouldn’t hold your investment in a company for 10 years, don’t even think about owning it for 10 minutes.” Do not make spur-of-the-moment investment decisions, as I can tell you from personal experience, they usually lead to mistakes. Identify an investment that interests you, think over it for an extended period of time, and then execute.

My best piece of advice is to invest in an index fund. In simple terms, an index fund is a form of investment that tracks the performance of hundreds of different companies. The S&P 500 Index is the most famous, and there are plenty of funds that follow this particular index.

Warren Buffett has stated numerous times the importance of investing in a low-cost index fund. Buffett recently said in a 2019 Yahoo! interview, “in 1942, if I put $114 into an S&P 500 fund instead of buying a single stock, it would be worth about $400,000 today.” This is arguably the most risk-free and reliable strategy for investing.

Make it your goal every month to put at least $10 or more into an index fund in your IRA. You are not only investing in your future, but the future of your family.

Commit to learning, save your money, and invest it wisely. Also, have confidence, because you are making one of the best decisions for your future, and beginning a lifelong journey of excitement!

Do you have a compelling story or student success tips you’d like to see published on the Pearson Students blog?  If you are a college student and interested in writing for us – click here to pitch your idea and get started!