The Best Way to Track Finances: Students’ Back-to-School Guide

July 24, 2024

Heading back to school as a college student is an exciting time filled with new opportunities, friendships, and experiences. But managing your money can be hard. Tuition, textbooks, rent, and daily expenses can add up quickly. It might feel overwhelming, especially if it's your first time living away from home. But don't worry! With a little planning and the right tools, you can take control of your finances.

This guide will help you track your finances to make sure you stay on top of your budget and avoid stress. From a back-to-school budget to easy methods to track your spending, here’s what you need to know to manage your money wisely. Let's dive in and make your college experience both fun and financially smart!

Why Tracking Finances is Important for College Students

Tracking finances is crucial for college students. It helps you avoid debt, save money, and plan for future expenses. When you track your spending, you understand where your money goes and make informed decisions.

Indiana students face unique financial challenges. For instance, the most recent Indiana College Value Report says that 32% of full-time students and 72% of part-time students hold jobs while attending college._[1] Understanding local norms can help tailor your budget effectively.

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Back-to-School Budgeting for College Students

A back-to-school budget is a financial plan that helps students manage their income and expenses as they prepare for a new school year. It includes estimates for all sources of income and identifies all potential expenses to make sure you can cover your needs without overspending. 

Here's a quick, step-by-step guide to help you get started:

1. List Your Income Sources: Include part-time jobs, scholarships, grants, and financial aid.
2. Identify Your Expenses: Break down costs that you will pay out of your income. This might include tuition, textbooks, rent, groceries, shopping, and entertainment.
3. Set Spending Limits: Allocate a specific amount for each category and stick to it.
4. Save for Emergencies: Aim to set aside a small portion of your income for unexpected expenses.

While we’re on the topic of budgeting, it’s helpful to explore ways to save more money. While money is usually tight for college students, it’s important to get out and live life when you can. Long-term savings goals can help make it happen without damaging your finances or credit.   

Here’s a simple student budget example: 

Monthly Income:

• Part-time job: $600
• Scholarship: $300
• Financial aid: $400
• Total: $1,300

 

Monthly Expenses:

• Rent: $500
• Groceries: $200
• Utilities: $100
• Transportation: $80
• Entertainment: $100
• Savings: $100
• Miscellaneous: $220

Total: $1,300

A back-to-school budget sets the foundation for financial success during the school year. 

You might also like: The Best Financial Goals Examples for Students 

Ways for Students to Keep Track of Finances 

Various tools and methods can help you keep track of your finances. Here are some of the simplest and most effective options. Pick the one that works best for you. 

Recommended: The Best Way to Track Spending 

1. Online Banking

Online banking is a convenient way to monitor your finances. Centier Bank offers online banking services that let you check your balance, transfer money, and pay bills from your phone or computer. Checking your account daily helps you stay updated on your spending and savings.

Tip: Set up account alerts for low balances and large transactions. These alerts can help you avoid overdraft fees and catch any unusual activity quickly. For example, if you set a low balance alert for $50, you'll get a notification when your account drops below this amount, prompting you to be more mindful of your spending.

2. Google Sheets

Google Sheets® is a free and flexible tool for budgeting. You can create a custom budget spreadsheet to track income and expenses. Templates are available online to make setup easier.

Tip: Use built-in functions to automate your budget calculations. For instance, you can use the SUM function to add up your expenses or the IF function to track when you exceed your budget. These features save time and reduce errors, making it easier to manage your money.

3. Budgeting Apps

Popular budgeting apps offer user-friendly interfaces to track spending, create budgets, and set financial goals. These apps sync with your bank accounts and categorize transactions automatically.

Tip: Take advantage of the goal-setting features in these apps. For example, you can set a savings goal for a spring break trip or a new laptop. The app will track your progress and show you how close you are to reaching your goal, keeping you motivated to save.

4. Envelope System

The envelope system is a simple cash-based method. Allocate money for different categories into separate envelopes. When the envelope is empty, you stop spending in that category.

Tip: Don't forget to include an envelope for savings in your budget. Whether it's for emergencies, future goals, or a fun outing with friends, setting aside money in a savings envelope can help you build financial security and achieve your objectives.

5. Financial Literacy Resources

Fortunately, you can access tons of financial literacy resources for free. For example, most communities and colleges provide free workshops on budgeting and financial planning. These can offer valuable insights and strategies for managing your money.

Here are some local resources to check out in Indiana: 

• Indiana University East® offers a variety of free money management courses._[2] 
• They also have an entire website, MoneySmarts®,_[3] dedicated to helping students pay for education. 
• Purdue® keeps a list of helpful money management resources for college students._[4] 
• Notre Dame® offers free resources, some dedicated specifically to general money management._[5]
• Check with your school and explore your local community to find out what financial education options are available. 

You might also like: Free How to Save Online Course and Tips at Centier To You 

Track Your Finances with Centier's Student Checking

Managing finances as a college student may seem daunting, but with the right tools and strategies, you can stay on top of your budget. Whether you use online banking, budgeting apps, or a good old spreadsheet, the key is to stay consistent and proactive. 

For a fee-free checking account with convenient online banking tools, open a Centier Student Checking Account today! 

Frequently Asked Questions:

How to track your spending as a college student?

Tracking spending involves creating a budget, using online banking, and utilizing apps or spreadsheets to monitor expenses.

What is a good monthly budget for a college student?

A good monthly budget should include all income sources and major expenses like rent, food, and savings. Tailor it to your needs and financial situation.

Resources: 

[1]  https://www.in.gov/che/files/2020_College_Value_Report_04_01_2020_spreads.pdf

[2]  https://east.iu.edu/career/money-management/index.html

[3]  https://moneysmarts.iu.edu/ 

[4]  https://www.purdue.edu/dfa/students/moneymanagement/

[5]  https://personalfinance.nd.edu/personal-finance-resources/general-financial-wellness/