College is one of the most crucial years of a student’s life. During this time, children learn to sustain themselves alone in society.

Adapting to this new change might initially seem complex—one of the major problems that students face while studying at college is managing their financial expenses.

This newfound freedom may tempt them towards harmful habits or overwhelm them with additional stress. It is necessary to teach them the art of managing their financial expenditure to relieve them from added stress.

According to the Student Income and Expenditure Survey 2011/12, An average college student spends most of their money on living expenses, course materials, electrical gadgets, books, and stationery. Other than these, they also spend money on food, entertainment, clothes, personal care products, and friends.

Other expenses are added to this amount. Prospective students are imposed with this massive pile of costs, which might lead to student loans or credit card debt.

At a very early age, the students get stuck in the loop of paying interest on their credit card debt. There are some plausible remedies to relieve the students from such problems.

1. College Students Spending Statistics

According to Kanan, the average college tuition fee can be below or above 20,000 euros per year, depending on the country. Living expenses vary between 9600 and 14400 euros per annum.

The average grocery bill is nearly 27000 euros per year, and clothing and entertainment expenditures may reach up to 3490 euros per annum. So, an average college student spends almost 65000 euros per year, excluding extra expenses like transportation costs.

2. College Students Spending Behaviour

Due to social media pressure and a lack of proper understanding about money, most college students spend money on many unnecessary things; as a result of such unnecessary expenditures, personal expenses increase. This can also include food expenses and internet access. Such expenses should be stopped.

Tuition fees or tuition costs are considered beneficial expenditures. However, some expenditures create a negative impact on a student’s life. Here is a list of some students’ spending habits that lack positive benefits.

2.1. Shopping Spree

There is a group of typical student who love to enjoy their newly found financial freedom. These college students buy and love spending money on superficial objects like trendy clothes, cosmetics, and fashion accessories.

Such a college student should be appropriately guided to create a monthly budget. It is essential to make them aware of their spending power.

2.2. Binge Drinking

Binge drinking means consuming a considerable amount of alcohol in a short period. College days are when students love to explore their newly found freedom.

This might lead to binge drinking. Excessive alcohol consumption not only hampers their studies but also takes up a lot of money.

2.3. Spending on Friends, Parties and Entertainment

In the case of entertainment, college students get many discounts in various places when they show their student cards. People’s ideas of entertainment and fun vary. For some, going to bars and parties is an ideal form of entertainment, whereas some people enjoy solitude.

These introverts love spending time in their cozy rooms, watching shows, or reading their favourite novels. As there are various entertainment choices, the cost of entertainment also varies.

Most students plan their entertainment budget during their academic year, including cinema tickets, OTT subscriptions, eating out during college breaks, and much more.

2.4. College Stuffs

Most students spend their average money on college expenses other than room and board. These include course materials, average college meal plans, gadgets, books, and other stationery products.

During their school year, parents cover the expenses of all the school supplies, but as soon as a student steps into college, they are all on their own. Since it is an age of advancing technology, students must spend money on gadgets like smartphones and laptops. Also, the college education and the price of course materials vary depending on the choice of subject major.

Students majoring in science-related subjects, like health and mathematics majors, have many extra expenses. These additional expenses might add to their course materials, making them more expensive than other subjects like literature or history.

3. How to Spend Money Wisely During College Life

The university period is the time when students gain practical experience in finance. An average college student spends money on many extra items, which is not considered wise.

This is also a period to learn about personal expenses and find a way to earn extra money. While planning to earn their monthly budget, many students seek more accessible cash flow sources or earn money through unfair means. Here are some ways to spend and earn money wisely.

3.1. Reducing Off-Campus Eating and Other Expenditures

Students should learn to make their meals or stick to the college meal plan. The meals served in the college canteen are highly affordable. Making your meal will surely help them save an extra penny.

College students love making new friends and often plan to eat out of campus. This can be counted as an extra expenditure if they usually eat out of campus. Reducing this extra expenditure will surely help them save money.

3.2. Utilize the Available Free Learning Resources

During college, a significant portion of financial resources is dedicated to procuring course materials, textbooks, and electronic devices. Many students never realize that many effective yet free course materials are available online. Students can use these free course materials to save money and gain extra knowledge.

One of the most significant instances of extra expenditure on course materials is seen mainly in technical fields. With the advent of Chatgpt, students are spending a lot of money and allotting themselves to many expensive courses to learn this new form of technical art.

Most students may not realize they can acquire foundational knowledge about chatGPT by enrolling in Andrew NG’s free course, surpassing many paid alternatives in quality.

3.3. Healthy Spending Habits

The newfound freedom of university students leads them to waste money. However, students can learn to ask reflective questions; then, they can control the unhealthy spending habits of college life and maintain a monthly budget.

Some reflective questions to control extra spending.

• Do I need this item?
• What if I don’t buy this?
• How much will I save if I don’t purchase it?
• If I don’t purchase this item, will it hamper my life?
• How many ways will it profit me if I choose not to buy it?

College students can also maintain a monthly budget sheet and analyze their extra spending at the end of each month. This can help them maintain healthy spending habits.

3.4. Financial Aids

Many students dream of higher education at a university but can’t afford the high educational expense. These national or international students can seek financial aid from their dream university. This will help them reduce their educational expense and will help them take a step to attain their dream.

Here are a few steps to ask for financial aid from your college.

• Step 1- Choose a proper university.
• Step 2- Write down your educational qualifications and collect letters of recommendation and certificates of achievement. Prepare a proper portfolio.
• Step 3- Be specific with the reason. Tell them why you need a scholarship or financial aid.
• Step 4- Politely ask them if they can help.
• Step 5- Mail the content to the university and await their reply.

Essential Financial Support for Learning Access

Megan Dias, Career Services Coach, Parsity, describes how financial support to students impacts the overall accessibility of quality education:

With a Master’s degree in Education & Leadership and experience spanning various sectors, including traditional higher-education institutions, ed-tech startups, non-traditional colleges, and specialized boot camps, I firmly advocate for institutions to provide financial assistance to students.

A primary deterrent for many individuals considering education is the inability to meet its financial demands.

Throughout my professional journey, I’ve encountered numerous motivated learners whose progress was hindered by financial constraints.

Affordability should not be overlooked when evaluating educational quality, as “expensive” is subjective and influenced by individual financial circumstances.

Therefore, individuals lacking financial means require support to access any continuous learning program.

3.5. Part-Time Jobs

Private tutors, research assistants, internships, babysitters, marketing and more are some part-time jobs university or college students can apply for. These jobs will surely help them to earn extra money.

4. Some Well Known Recommended Books on Finance and Expenditure for College students

An accessible book on finance will never go to waste during college life. This will create a habit of reading among the students and teach them how to handle and spend money.

These books can act as a guide for students who have little or no idea about finance. Such easy and helpful books are readily available online. These are some of the easy yet helpful books on finance that students can easily download for free.

4.1. The Richest Man in Babylon by George Samuel Clason

Do you avoid finance? Do you wish to manage your daily expenses? This book by George Samuel Clason will surely make finance easy for any student or adult. It upholds the ancient Babylonian culture of dealing with money. ‘The Richest Man in Babylon’ can successfully and efficiently guide anybody on how to set a monthly budget.

One of the most straightforward tips suggested in this book for setting up the monthly budget is that 1/10 of one’s earnings must go into savings. 7/10 must go on livelihood, which includes food, clothes, and much more. 2/10 must be kept for debt repayment. The easy guidelines presented in this book can quickly sort a student’s living expenses.

4.2. Rich Dad Poor Dad by Robert Kiyosaki

Students must learn about investments from a very young age. Robert Kiyosaki’s book Rich Dad Poor Dad can serve as an easy and inspiring guide to investing.

After reading this book, one can easily distinguish between what can be considered an asset and a liability. If The Richest Man in Babylon teaches us how to save and spend money, Rich Dad Poor Dad is a guide to quickly starting a golden stream of cash.

4.3. Think and Grow Rich by Napoleon Hill

Money and morality, wealth and contentment, can go hand in hand. This is the central concept of Napoleon Hill’s book. It intends to teach us that one can attain all happiness, success, and wealth if we keep our thoughts in check. Thoughts are like blueprints that lead us to action.

‘Think and Grow Rich‘ guides us on how to keep our thoughts in check. Many international students tend to sink into depression while they are away from their families. This book will not only act as a guide on finance but also teach its readers how to deal with failures and depression.

5. Conclusion

College or university days can be harsh for students. They not only have to focus on their studies but also need to set their minds on daily expenditures.

This article intends to act as a guide that will make finance a little easier for these new adventurers who are struggling hard and patiently waiting for their life to unfold.

Last Updated on July 8, 2024 by Sathi Chakraborty