Money Monday: Start the Semester With a Budget That Actually Works

A new semester can bring a lot of expenses at once. Books, supplies, transportation, meals, fees and everyday spending can add up quickly, sometimes before you have settled into your new routine.

The start of a new semester is a good time to take stock of your finances. Before things get busy, look at what money you have available, what expenses are coming up and how much you can comfortably spend along the way.

Start with your real semester expenses

Before deciding how much you can spend each week, take a look at what you will actually need to cover.

Think beyond tuition and housing. Your semester expenses could also include:

• Books, supplies and course materials
• Transportation, gas or parking
• Groceries and meals
• Technology or software
• Club, activity or lab fees
• Personal and household expenses
• Unexpected costs

Once you have a clearer picture of the semester ahead, it is easier to make spending decisions that work for your situation.

Build a budget you can actually follow

A realistic budget should leave room for everyday life, not just bills.

Start with the money you expect to have available, then subtract your fixed expenses (expenses that stay about the same each month, like rent, utilities or a phone bill) and semester essentials. From there, decide what feels reasonable for flexible spending like food, entertainment and shopping.

If financial aid, scholarships or other funding are part of your budget, check your school account to see what has been applied to your balance and what you may still owe. If you receive a financial aid refund, keep in mind that the money may need to cover expenses throughout the semester, not just right now.

Finally, try to leave a little money unassigned. Even a small cushion can help cover an unexpected expense without throwing off the rest of your budget.

Red Kite Pro Tip: Take a look at recurring charges and subscriptions, too. If you are paying for something you rarely use, the start of a new semester is a good time to reconsider it.

Try a 15-Minute Monthly Money Check-In

Once a month, set aside 15 minutes to check in on your finances:

1. Check your balance: Review what money you have available and any income or financial aid you expect.
2. Look ahead: Scan the next 30 days for bills, school expenses, transportation, events or other costs coming up.
3. Review your spending: Look at where your money went over the past month and notice anything you may want to adjust.
4. Make one change: Set a spending limit, move a little money into savings, cancel an unused subscription or plan ahead for a larger expense.

Quick Tip: Pick the same day each month, such as the first Sunday or the day after you get paid, so it becomes part of your routine.