Building Your Back-to-School Budget

Do College Students Need a Budget?

Prepping for a new semester means choosing your class schedule, moving into your dorm, and joining new extracurriculars. But you also need a clear budget.

A college degree is one of the strongest ways to support your long-term financial future. On average, college graduates can earn about $22,000 more per year than people whose highest level of education is a high school diploma. Still, college is a major investment. When you factor in tuition, room and board, and school supplies, a single year of college can easily cost tens of thousands of dollars.

The majority of undergraduate students rely on student loans at some point. A solid back-to-school budget can help you borrow less, avoid unnecessary expenses, and stay focused on your goals.

Below are practical tips to build a back-to-school budget that sets you up for success this semester.

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Analyze Your Spending

If you made the most of your summer, your spending habits might be higher than you want them to be once classes start. Before the semester begins:

• Look back at your spending from the past few months;
• Group expenses into categories like food, housing, transportation, and entertainment;
• Identify places where you can cut back.

A few ideas:

• Subscriptions: Consider canceling or pausing streaming services and other subscriptions you are not using often. This can save money and reduce distractions when you should be studying;
• Eating out: If you spent a lot of your summer eating out, explore your school’s meal plan options to see if there is a more cost-effective way to handle day-to-day meals.

Need an easy tool to track your spending? Try the Esusu Spending Planner.

The planner uses the 50/30/20 method of budgeting:

• 50% of your income for needs (like rent, groceries, and transportation);
• 30% for wants (like eating out, streaming, or social activities);
• 20% for savings or debt payments.

It is a simple way to start reviewing your spending and seeing where your money actually goes.

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Cut Textbook Costs

College textbook prices can take a big bite out of your budget. In 2022, the average student at a four-year university spent about $1,226 per year on textbooks and supplies, with the average textbook costing around $105.

You still have options to save:

• Buy older editions: Ask your professor if an older edition of the textbook works for the course. If the content is similar, you can often find earlier editions for much less;
• Shop secondhand: ThriftBooks and other secondhand bookstores can be great places to find cheaper copies of textbooks and required reading;
• Use the library: Public and campus libraries may not stock every textbook, but they can be a great source for novels, biographies, and other supplemental reading.

Planning ahead by comparing prices early can keep textbook costs from overwhelming your budget.

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Save on Transportation

Transportation is another cost that can sneak up on you.

• If your campus is walkable or bikeable, you might be able to skip owning a car altogether;
• If you live or work off campus, you may need reliable transportation to get to class, work, and home.

Look for:

• Transit passes: Many campuses offer discounted or free transit passes that give you access to buses, trains, or local transit systems. This can be much cheaper than paying for gas, parking, and maintenance on a car;
• Carpooling: Sharing rides with roommates or classmates can reduce your costs if public transportation does not fully cover your route.

If you already own a car, consider whether refinancing your auto loan could help lower your monthly payment.

Esusu residents can access Caribou through the Esusu Renters Marketplace to explore some of the most competitive auto refinance rates available. Caribou customers can see an average of $110 in monthly savings, which can make a real difference in a student budget.

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Ready to Start Budgeting?

Getting a college degree is an investment in your future, and a thoughtful back-to-school budget can help you protect that investment. By analyzing your spending, cutting textbook costs, and managing transportation expenses, you can start the semester on stronger financial footing.

Want more cost-saving tips and access to renter-focused financial tools?

• Explore the Esusu Renters Marketplace for curated resources that can help you save and stay on track;

Follow @myesusu on Instagram to see how Esusu is helping renters and students stay financially stable.