“What is budgeting?” is a question that most students might be able to answer. The real question to ask is “How are you budgeting?” which is a question that might cause students to stop and really think about their answer.
Understanding the concept is easy, but actually implementing something into your everyday life can be a struggle, especially something important like budgeting.
There are many different ways that one can follow when it comes to budgeting, but what way is the best for a young college student who has yet to make a real living for themselves in this expensive world? The most realistic rule to follow is the 50/30/20 rule. What it means is that you use 50% of your money for needs, or in a college setting, stuff that is most important, for example, monthly payments for tuition/loans, and everyday living needs (toiletries, food, etc.). The 30, or 30%, is for your wants, things like a piece of clothing, a new lamp for your dorm that looks cool, or that new video game you are dying to play after your classes are over. Finally, the 20%, though it is the smallest portion you focus on in this budget plan, is the one that should remain the most consistent in your savings. The reason for this is that the 20% is the future savings. Emergency funds, putting money aside to pay a little extra on accumulated debt, and even saving up money now to have after graduating from college, can be extremely useful to have. This 20% may seem small to set aside, but even $10.00 a month adds up to $120.00 a year, which you can now have in case of an emergency. It will only continue to grow if left untouched.
Back to what was mentioned in the beginning, knowing the concept compared to implementing the concept. The key thing to do when budgeting is tracking. Anything from making a spreadsheet to writing it down in a notebook, knowing what you spend on things is key. If you were to sit down today and come up with a list of things you need and want, then get the total cost of those things, that would be a major start. Then it is just a matter of implementing the percentages of the 50/30/20 rule. Even if you do not have a source of income, you can pick an amount of money you want to spend every day, week, month, or even year that you have saved up, and implement it into your budget. The hardest thing about it all is simply getting started.
–Oct. 7, 2025–
