Written by Ann Tran
One of the most important aspects of obtaining an education is budgeting. Whether as a student in a new city, state, or country, learning how to manage one’s finances can save students from a lot of stress. In this post, you will learn why budgeting is necessary, how to make a budget, differentiate between financial needs vs. wants, plan ahead, and learn different ways to save money.
The first step in making your own budget is to have a clear number of your baseline monthly income: $______
The second step is to then calculate the totals of your different types of expenses per month: Fixed, Infrequent, and Leisure Expenses. While this is not meant to be comprehensive, below is a general list of these (3) types of expenses along with examples of costs you may generally have. Use the corresponding tables to enter in your own costs per list to practice/ begin calculating your own expenses!
1. Fixed expenses (necessary costs)
Tuition/ university fees: most universities/ programs require certain fees in addition to tuition payments (such as registration fees). Be sure to keep up to date on required quarterly or annual fees to avoid academic holds that can affect enrollment or accumulating late fees.
Rent: Monthly rent is collected by either university or apartment landlords. Keep in mind that for most residences, rent payments are not fixed and can increase incrementally per lease renewal.
Utilities: This expense includes water, trash pickup, electricity, gas. Note that some apartments and graduate housing does cover the cost of some utilities.
Transportation: Some students utilize bus transportation on and around campus which is generally free or at reduced costs. Students may also opt to lease a vehicle after obtaining residency (after 1 year) for their licenses; this will result in additional costs such as monthly car payments, insurance, registration and gas.
Student Loans: Students may have student loans for their graduate programs or from undergraduate studies in which case they may want to pay off accrued interest fees per month.
Credit Cards: Credit cards can be helpful in building credit and offsetting upfront costs to major expenses; however, paying these bills back monthly is also crucial to not get further into debt through accruing interest or late fees.
Phone: Cost from cell phone bills as well as calling cards to talk to family members are an additional monthly cost.
Internet: While graduate student housing at UCI covers internet/ WiFi costs, students may opt to live elsewhere where internet costs must be set up and are expected to be paid for by tenants.
Groceries: Based on how much you cook per month, you should try to get your monthly grocery cost to be a fixed amount. This means keeping track of what foods get spoiled at the end of the month and adjusting this monthly cost accordingly to avoid wasting both food and money. Additionally, cooking more than eating out will help you drastically cut back on your monthly expenses.
Fixed Expense: (necessary monthly bills/costs) | Totals: |
Tuition/School Fees | $ |
Rent | $ |
Utilities | $ |
Transportation | $ |
Student Loans | $ |
Credit Cards | $ |
Phone | $ |
Internet | $ |
Groceries | $ |
Overall Fixed Expense Total: | $ |
2. Infrequent expenses (once an academic quarter)
Textbooks: For graduate courses or reading lists for exams
Other Course Materials: (For teaching as well) notebooks, pens, etc
Personal necessities: This cost covers one’s personal supplies for hygiene for example (hair products, toothpaste, toilet paper, etc).
Conferences: Funding for conferences may not be as readily available (as some sources are competitive) as you try to establish your professional careers; this includes membership fees and travel expenses that may not always be covered by your programs or funding applications.
Travel: to see family and/or friends from home.
Infrequent Expense: | Totals: |
Textbooks | $ |
Other course materials | $ |
Personal Necessities | $ |
Conferences | $ |
Travel | $ |
Overall Infrequent Expenses Total: | $ |
3. Leisure expenses:
*This expense list is different from your Fixed and Infrequent Expenses in that the prior two are financial “Needs” and the Leisure list below are of your financial “Wants.”
**It’s okay to reward yourself as long as you budget and save for it!
Eating/ dining out: can be much more expensive than cooking (see “Groceries” above)
Entertainment: going out to movies, bars, concerts, museums, etc
Clothes/ shoes: shopping that isn’t absolutely necessary
Leisure Trips: travel, vacations
Leisure Expense | Totals |
Eating/ Dining Out: | $ |
Entertainment: | $ |
Clothes/Shoes: | $ |
Leisure Trips | $ |
Overall Leisure Expenses Total | $ |
After adding up all of the totals to your (3) types of expenses (Overall Fixed, Infrequent, and Leisure Expense Totals), subtract it from the amount of your baseline monthly income: $____________
Any surplus per month should go towards your Savings to:
1. Plan for unexpected expenses: such as medical, car, or other financial emergencies.
2. Go towards a specific desired savings goal: such as for a car, an expensive event/
concert, a vacation, etc
*Every dollar counts!
The key to effective budgeting is to balance your income by not spending more than you make (your baseline monthly income).
Some ways to save every month:
-Consider splitting certain infrequent personal necessities expenses with a roommate by taking turns buying toilet paper, for example. Buying certain shared items in bulk will also help with costs.
-Look into couponing apps like Ibotta or SavingStar (grocery store couponing) or Groupon to offset other expenses like haircuts.
-Cook more! As mentioned above, the cost of buying and cooking groceries is much cheaper than eating out every night.
-Sign up for loyalty programs or cards for clothing stores/ coffee/ boba/ bakery shops that you frequent often to save with discounts.
As many students move away from home to live and study at the university, we also leave immediate access to immediate financial/ support systems. In the process of building a comfortable life around your new home, it is important to keep track of expenses regularly to not add additional financial stress to your plate. Be sure to update your Excel budget sheets or tables like the ones above in your personal files weekly or monthly.