Division of Financial Institutions Offers Back to College Budgeting Tips for Students, Parents

COLUMBUS, Ohio- With the 2024-25 academic year beginning at colleges and universities across Ohio in the coming days, the Ohio Department of CommerceDivision of Financial Institutionsencourages students and parents alike to take some helpful steps to manage their finances effectively, which can help alleviate stress and set students on a path toward success.

According to the National Retail Federation (NRF), college students and their families are expected to spend an average of $1,364.75 on items for the upcoming school year, with total back-to-college spending expected to exceed $86 billion. That would mark the second-highest figure in the history of the survey according to the NRF.

"Back-to-school budgeting doesn't have to be a stressful time; and it's never too late to take steps to encourage smart financial decisions," said DFI Deputy Superintendent Pamela Prude Smithers. "By being smart with your money and always being on the lookout for deals, you can help ensure everyone is set up for a successful school year."

Budgeting Tips for College Students

Establish Your Monthly Income

Balancing a job with a full course load is challenging, but a consistent, small monthly income can help provide students with significant financial relief. Working 10-12 hours a week can help cover essential expenses and offer some extra spending money. Additionally, working during breaks in the academic year can help build a financial safety net for the school year.

Understand Your Monthly Bills

Understanding your recurring expenses is essential for proper budgeting, especially for college students. By calculating all costs such as phone bills, toiletries and gas money, students can determine how much they need to make each month, and how much they can allocate for non-essential items, like that regular cup of coffee.

Don't Forget the Big Expenses

Large semester bills, such as tuition and textbooks, should always be factored into students' budgets. If these expenses aren't fully covered by scholarships, parental contributions, or student loans, students should plan accordingly to manage those expenses.

Skip the Credit Cards Where You Can

Credit card companies often target college students with enticing offers, but it is best to avoid accumulating credit card debt while already managing student loans. A poor credit score can have long-lasting effects, so students should focus their spending within their means.

Always Check Your Account

Students should regularly monitor their bank account to keep track of their spending and saving habits. This can also help avoid unpleasant surprises, like rejected transactions due to insufficient funds.

Make Necessary Adjustments

Students should reevaluate their budget regularly to ensure it's in step with their financial reality. If expenses exceed income, it's important to consider additional work hours or cutting unnecessary costs, such as takeout meals or unused streaming subscriptions.

Creating and sticking to a budget during college is essential for managing debt and establishing strong financial habits into adulthood. These practices will not only help students through their college years, but also help establish a foundation for achieving long-term financial goals.

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About the Ohio Division of Financial Institutions
The Division of Financial Institutions is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.

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