All About Budgets | Students

Simple Budgeting Guidance for Students

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Budgeting guidance for students is significant since not all schools teach money management.

Whether you’re a parent reading this or a student, start the budgeting process before going to school.

Another point to consider is how many school districts may not have the budget they once did.

The combination of pandemic pressures and fewer students may mean deep cuts for some districts.

“When budgets aren’t sufficient and when cuts have to be made, those who really suffer are children, and they tend to be the most vulnerable children that need the most supports,” said Teri Mooring, president of the B.C. Teachers’ Federation.

CBC News

Money is an essential resource that any individual can possess at all times as it is for a business.

However, if money resources become inconsistent or incorrect, this results in budget failure.

It can pay for necessities like food and shelter or small leisures like ice cream.

Budgeting guidance for students returning to College or University
Learn how to budget for students returning to University or College

Students Want To Learn How A Budget Works

Student budgeting has started to catch on because the cost of living in Canada is out of control.

Budget guidance is needed most, especially for students who have never used one before.

Unfortunately, some people lose track of their spending activities and become short on cash when it matters most.

Budgeting is crucial, especially for students who are most likely on a monthly allowance.

It’s necessary to plan and balance your finances as early as two months before school starts.

I wanted to talk about simple Budgeting guidance for students before the new school year so it becomes a ritual.

It’s a ritual because budgeting basics work to incorporate a routine of money management.

Related: Follow my 10 Step Mini Budgeting Series to find out how we started our monthly budget.

What Are Your Weekly Income or Allowance Sources?

Firstly, a student needs to consider how much money they earn in a week or month, regardless of their money source.

The number you will be working with is your net income, which you bring home.

Leave the pre-tax income alone, as that will give you false hope and numbers.

If you work part-time, you can be confident that you will get paid if you put in the effort.

Even though we are done school and debt-free we still allow each other a monthly $100 allowance.

On the other hand, people who get their allowance from their parents have to worry about their family’s expenses.

Budgeting Guidance For Allocating Funds

Where your money needs to go depends on your financial situation.

If you attend college away from home, you may have to worry about rent.

However, living with your parents makes you worry-free about your daily necessities.

Here are some things to consider as priorities for your savings, from most urgent to least.

Related: How To Create a student budget for students

Budgeting Guidance For Daily Expenses

Whether you have to worry about rent is situational, but your public transportation and food budget are constant.

Even if you can eat breakfast and dinner at home, you also need to worry about lunch and snacks at school.

It will help if you keep a few extra paper bills if you see something you like out of the blue or need a few more coins for a sandwich.

Daily expenses do not include items that you would consider part of your allowance as stated above.

No matter how affordable they are, these still factor in your whole budget in the long run.

Saving For Your Future Goals

For students, it is only a matter of time before they either have to move out or seek opportunities in another city.

It would help if you thought about practicality and comfort before worrying about having an impressive flat for guests.

Another idea worth pondering is owning a car.

  • You may want to invest in a utility vehicle for the family or an impressive ride for friends and peers.
  • Use your current income as an investment that could give you more money.
  • You could run a business, participate in trading assets, or invest in stocks.

Granted, all of these activities need intensive research and careful studying on top of your school activities.

You will need time and money, but the result is always rewarding.

If you are in high school, you should already start planning which industry you plan to join.

There is only so much that your daily teenage wage and allowance can pay for your tuition, but your savings can help make it more manageable.

Even if you can’t pay the monthly fees, you can at least pay for your necessities like a laptop/desktop, industry-standard equipment, and more.

Electronic Devices For Budget Guidance

Speaking of devices, computers, laptops, tablets, and mobile phones are essential in any industry.

As a guy who has lived in Canada for over 12 years with no mobile phone, my employer suggested I get one.

I went as cheap as possible, chose Freedom Mobile, and paid $19.00 a month WITH DATA!

Update: It’s 2022 and I’m still using Freedom Mobile getting the same deal. With taxes, the deal is $21 each month.

My mobile phone was a hand-me-down Samsung 8 from Mrs. CBB, which didn’t bother me.

All I cared about was that it worked for what I needed it to do.

The hardware quality you need may not be necessary to most industries that only need to operate office-centric programs like Microsoft Office.

If you plan to be in the entertainment or software industry, you need a unit to support robust programs.

Aspiring musicians and voice actors also need sound mixers and recording devices.

If you wish to be an athlete, it is best to invest in high-grade apparel to avoid injuries and discomfort and ensure its endurance for years.

There’s also a gym membership to pay for so you can stay in competitive form.

Budgeting Guidance For Hobbies And Leisure Activities

Even if you don’t plan on developing games or making movies, you may still want to own a robust system.

Video games are trendy right now for all demographics.

You can get a game console or a PC.

You may also get the best tablet or smartphone in the market to better experience watching movies or playing mobile games. 

Being a collector might be the most expensive hobby that anyone can have.

It involves seeking valuable items in a niche, whether pop culture or craftsmanship.

The most coveted objects are always expensive as it is also sought after by like-minded people.

Your budget for leisure should be the least of your priorities.

Wealthy People May Spend More Money

Adults can have more money for wants than needs.

For this reason, they can afford various luxuries like taking vacations, fancy clothes and current trends.

Unfortunately, such opportunities restrict students who have bank loans and other debt.

That is why they are more in need of budgeting tips than adults.

I can offer overall budgeting guidance in my Budget Category on the blog or in the three links below.

Other Budgeting Guidance Posts on CBB

Start Here if you’re looking for more budgeting guidance.

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One Comment

  1. One thing we did with our son who went away to university is after sitting down and calculating all the recurring expenses (rent food etc) we transferred an applicable biweekly amount to his account on the same pay date as ours.
    This did 2 things. First it ensured that he didn’t run through a large sum early and then had to call us for more money later. Second, it got him used to working with a fixed inflow of money that had to last until the next payday. This is a skill I think many people lack so this was an opportunity for him to practice.

    The second year I worked with him on how to see how much tuition had to be paid and to arrange the payment himself. He learned to navigate the website find his account, find out which payment methods they accept, then set up the payment in his account. This again is a skill (bill paying) that many people don’t have now that we don’t whip out a cheque book any more.

    I will admit that I navigated the Initial OSAP and University applications as he was in high school at that time. But over the 3 years of university I gave him more and ,ore responsibility for his own finances.

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