Enable Accessibility
×
Close
Personal Online Banking
All personal banking clients, please enter your online credentials here:
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855.274.2800.

Download our e-Treasury Secure Browser

Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212.575.8020.


Download our e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800

For optimal viewing experience, please use a supported browser such as Chrome or Edge

Download Edge Download Chrome

Back-to-school budgeting 101 for college students

Published on August 3, 2022 | LPL Financial

Establishing and sticking to a budget is an important life skill to learn, even for college students who are focused on keeping up their grades and getting a good job when they graduate. Budgeting may help them understand how much money they need to cover necessary monthly expenses.

Living within your means at a young age may lead to good credit scores and allow you to save money for your future, including your retirement, even though it may seem far away. It may also allow you to build more wealth over time. You may make a budget using several tools, including a budget app or a spreadsheet. However, your chosen method only works if you are disciplined and stick to your budget.

Here are some steps to creating your college budget.

Calculate your income

The first step is calculating your net income, which is the amount you receive after taxes. Your net income may include full- or part-time pay, money you receive from family or friends, and financial aid, such as grants and student loans.

If you work a set number of hours weekly, your monthly net income is easy to calculate. If your hours vary, determine your average income and use that as your budgeting base. If you are not sure, use a lower number to avoid overspending.1 If you make more than you spend, you may be able to save more or treat yourself to something special.

List your expenses

The next step is to list your monthly expenses, including housing, food, tuition, books, entertainment, and transportation. To get yourself in the habit of saving, create a savings expense on your monthly list. Then determine whether your other expenses are fixed (stay the same each month) or variable. Also, choose a priority for each cost. For example, food and rent would be critically important, while entertainment would be discretionary and a lower priority.

Once you list and categorize your expenses, determine the average monthly cost for each payment. Reviewing your bank and credit card statements may help you determine the correct figures to use.

Make changes as necessary

Total your average monthly expenses and compare them with your net income. If you make less than you spend, you may need to make some adjustments. Consider whether you might work more hours and still maintain your grades, but also pay attention to what expenses you may cut. For example, you might use coupons to save money on food or transportation, and you might consider borrowing books or buying used books instead of purchasing new ones.

Review your budget often

Once you develop your budget, you want to review it from time to time to ensure it still works for you. Update it regularly when your expenses change and every time you get a raise or scholarship.2

It is never too early to speak to a financial professional about your short-term and long-term financial goals after college. A financial professional can help you pursue paying off your student loans, set up your first 401k, plan for your future, and work towards building your wealth.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking # 1-05298171.

Footnotes

1 The go-to money guide for cash-strapped college students, CNBC, https://www.cnbc.com/select/guide/money-management-for-students-back-to-school-budgeting/#why-its-important-to-build-good-money-habits-in-college

2 Creating a Budget, Bank of America, https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget

Related Resources

Webster InvestmentsArticles
Have you checked your retirement plan lately
It’s generally a good idea to review your employer-sponsored retirement savings plan at least once each year and when major life changes occur. If you haven’t given your plan a thorough review within the last 12 months, now may be a good time to do so. Have you experienced any life changes? Since your last […]
Webster InvestmentsArticles
How portfolio diversification can be sweet like a box of chocolates
In the world of investing, risk and reward go hand-in-hand. To help manage risk and reward, investors often utilize a portfolio diversification strategy that mitigates risk while working toward accumulation across asset classes. Diversification mitigates the potential for unsavory pitfalls while offering a variety of suitable outcomes. In this article, we explore portfolio diversification by […]
Webster InvestmentsArticles
How to plan for a healthy retirement
Planning for retirement often involves focusing on your finances and ensuring that you not only will have enough to sustain you during your retirement but adequate funds to do the things you enjoy doing. While this strategy is a crucial part of retirement, it is not the only thing to consider as you near your […]
Connect With Us
Learn more about Webster products, services and the communities we serve.
We’d love your feedback
×