by H.G. Hess

Created on: July 10, 2011   Last Updated: July 14, 2011

College should be a worry-free time where students can learn and grow while on the path to a secure career. However, the aftermath of a degree tends to have a hefty cost that most people in college do not realize is stacking up while they hit the books. Luckily, creating a college budget will provide a stable and realistic way to evaluate the costs associated with getting that degree.

When budgeting for college, it is important to know the actual cost of tuition versus how much financial aid will cover.  Any portion of the tuition a student is responsible for during that semester should be included in the current budgeting.

In addition to tuition, housing costs play a big factor in a college budget. How much will it cost to live on-campus versus getting an apartment or staying with family?  Keep in mind, most dorms include a meal plan, which may make it cheaper than living in an apartment. In addition to rent and food, all utilities should be included when budgeting: electricity, phone, internet, cable or satellite television, and water and/or gas where applicable.

Although housing and tuition costs are usually the heavier financial obligations in a college budget, secondary costs such as books and supplies, clothing and personal care items, and entertainment also need to be factored in. Oftentimes, special classes require expensive supplies and most if not all classes require purchasing of books, paper, and other supplies. Make sure to include a miscellaneous portion in the secondary budget items to cover any unexpected purchases necessary for the fulfillment of coursework or other needs. Health care should also be included, whether it be the cost of the monthly premium, or simply allocating a ballpark estimate of expected costs for doctor's visits, and both prescription and over-the-counter medications.

And yes, there's a "fun" section in a college budget: entertainment. Unfortunately, this one's the first to get cut when money's low. And what should be included in the fun fund? Dining out, partying supplies, cash for movie nights. Think hard when looking at what to include in the entertainment section. Special events like a college beach outing or museum hopping in the city will come with a price tag that one should be ready for.

The last part of the college budget is how much money to expect throughout the semester and what it will cover. That minus the total of all items in the budget would be savings- which are rare in the college world. The costs of tuition, housing, and utilities alone may be difficult to keep up with if a student does not have funds they can constantly dip into.  Many college students need to work to stay on course with their budget. By its very nature, establishing a college budget based on the above structure will create a stable financial forecast for a college student, so that their education is the focus of their day, as opposed to constantly have to worry about how much everything will cost.

Learn more about this author, H.G. Hess.
Click here to send this author comments or questions.