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What to Consider When Budgeting for College


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April 02, 2023

Going to college and earning a degree in your chosen space can be an excellent way to unlock the door to endless new opportunities in your life. The right degree can improve your chances of getting a higher paying job in an industry you generally care about. What's more, while you're at college, you can learn useful skills and build your independence, learning more about yourself along the way. However, as valuable as a college education can be, it's not without its downsides. The main issue for many students is simply figuring out how they're going to afford the costs of tuition, life, and accommodation when they're getting their education. Here are a few tips you can keep in mind to improve your chances of creating a successful college budget.

Know Your Total Income

The first step in understanding how you're going to manage college expenses is figuring out what your total income is going to be. If you're working part-time or full-time, then you should be able to track exactly what you're going to earn each month, and how you're going to distribute the money you have into different bills and expenses. Remember, it's not just your available wages you should be considering, but also the money you'll have access to in the form of financial aid, grants, and student loans. The more you know about the amount of cash you're going to have, the easier it will be to determine what you can reasonably afford to pay for tuition, accommodation, and travel.

Explore Your Loan Options

Many students pursuing college degrees will need to access some form of financial support. The reality is that college can cost tens of thousands of dollars over the years, depending on the type of degree you need. While government loans and grants might be an option for some students, they're not the best solution for everyone.

Depending on your situation, you may need to consider personal loans, or a specially designed private student loan that offers better repayment terms and conditions. Explore your options carefully before you dive into anything, and make sure you're borrowing enough money to cover all your expenses. The last thing you want to do is apply for a second loan within a couple of months of starting your degree.

Create a Comprehensive Budget

Finally, once you know where you're going to be accessing the financing you need for college, the next step is creating a comprehensive plan for how you're going to use your money. When creating your budget, it's important to think not just about the cost of tuition and classes, but how you're going to pay for expenses like travel to your campus, accommodation if you're living away from home, and extra expenses like books and resources.

Categorize your expenses into a budgetary format, so you can track exactly how much you're spending on each area of your life. As you're working through your budget, search for opportunities to potentially cut costs by eliminating unnecessary expenses. You could consider sharing a home to save money on accommodation or use public transport instead of your own car.


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About the author

Drew Allen

Drew is a financial enthusiast, seasoned blogger, music and sports fanatic. He enjoys spending time outdoors with his wife and daughter fishing and boating. He is dedicated to his 15+ year career in the banking, mortgage, and personal finance industry.

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