The world’s #1 Guide to Scholarships and Financial Aid

13.1. Creating a College Budget

A budget is your financial roadmap—it tracks what comes in (aid, income) and what goes out (expenses). Here’s how to build one:

• Step 1: List Your Income 

  • Scholarships and grants—note if they’re one-time or renewable.

  • Loans—only count what you’ll actually use each semester.

  • Family contributions or savings.

  • Job earnings (more on that later).

  • Example: $5,000 scholarship + $2,000 loan + $500 savings = $7,500/semester.

• Step 2: Identify Expenses 

  • Fixed Costs: Tuition (after aid), room and board, fees—check your school’s cost of attendance.

  • Variable Costs: Books ($300–$600/year), food beyond meal plans, transportation, personal items (clothes, toiletries).

  • Fun Stuff: Movies, coffee runs—be realistic but frugal.

  • Example: $4,000 housing + $500 books + $1,000 food/transport = $5,500/semester.

• Step 3: Do the Math 

  • Income minus expenses = your buffer (or deficit). Aim for a small surplus—e.g., $7,500 - $5,500 = $2,000 left for emergencies or savings.

• Step 4: Track and Adjust 

  • Use apps like Mint or a simple spreadsheet. Review monthly—cut back if you’re overspending.

Tip: Overestimate expenses and underestimate income—it builds a safety net.