How To Have a Successful Budget in College, According to Jade Warshaw

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College is a fun, exciting time filled with new experiences and opportunities, but it can also be a challenging period financially. Learning how to budget effectively during college can set you up for lifelong financial success.

According to Jade Warshaw, a Ramsey Solutions financial expert, creating and sticking to a college budget doesn’t have to be overwhelming. In a recent article, she shared her tips for a successful college budget.

Here are her top tips for budgeting your money like a pro while balancing academics and life.

Also see five accounts every college student needs — and they’re not what you think.

Start With a Zero-Based Budget

Warshaw emphasized the importance of a zero-based budget, where every dollar you earn is assigned a specific job. This means your income minus your expenses should equal zero. Write down your monthly income, which might include part-time job wages, financial aid or parental support, and then allocate it toward your expenses, like tuition, savings, books, rent, food and fun money.

Use a budgeting app like EveryDollar or Rocket Money to track your spending and ensure you’re staying on track. According to the Ramsey Solutions website, most budgeters using the EveryDollar app uncover up to $400 to put toward paying down debt, cut monthly expenses by almost 10% and build better habits within the first month of using it.

Increase Your Income

If you find that your expenses are more than your income, one option, according to Warshaw, is increasing your income. You could do this by working a part-time job during college. This not only helps cover your expenses but also teaches valuable time management and responsibility skills. You can often find jobs on or near campus that align with your schedule.

Every dollar you earn working part-time is one less dollar you’ll need to borrow or worry about spending.

Cut Costs Where You Can

The other option you have if your expenses are more than your income is to cut costs, according to Warshaw.

College students often have tight budgets, so finding creative ways to save is key. Warshaw advised eating at home more often than eating out, cutting down on subscription services and finding discounts on textbooks.

Small changes can add up to big savings over time. In fact, according to research from CNET, the average adult spends $91 on streaming services alone. Cutting out just a few services could add up to big monthly savings.

Check out a few of these money-saving hacks that could help.

• Use student discounts for streaming services, software and transportation.
• Share textbooks or buy used copies.
• Use public transportation or carpool to save on gas.

Save for Emergencies

Even as a college student, having a small emergency fund is essential. Warshaw recommended setting aside money each month for emergencies or future tuition payments. Having this safety net could help prevent you from reaching for a credit card and going into debt.

Here are a few tips to get an emergency fund started.

• Save a portion of your paycheck.
• Sell unused items, like old clothes or electronics.
• Use windfalls (like birthday money) to boost your fund.

Track Your Spending

It’s easy to lose track of your money in college, especially with the hustle and bustle of classes and activities. Warshaw recommended tracking your spending throughout each month to see where your money is going and adjust if necessary. If you wait until the end of the month to review your spending, Warshaw said, then it’ll be too late to make any adjustments.

Reviewing throughout the month keeps you accountable and prevents overspending.

Here are a few ways to stay on track.

• Set a reminder to review your budget every week.
• Categorize your expenses and look for areas to cut back.
• Celebrate small wins when you stick to your budget.

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