Out of Class Story 3 (Student Budgeting)

Ask college students and they’ll probably tell you that budgeting is difficult. Students and professors at Michigan State University proved to be no exception. When budgeting, students say it takes a plan.

Student budgeting is something that’s very important in college. With the abundance of things to spend money on in college that weren’t necessarily available in high school, combined with the sense of independence that students may feel, saving money can be a challenge. MSU students and professors mentioned what the main factors are the common problem.

Jeremy Reece, a sophomore at MSU, talks about how he sometimes struggles with his budget at school. He mentions “unknown expenses” and payments that are “small but frequent.”

                

“It’s very difficult… you have to account for food and a bunch of other consumables. There are other things that don’t cost a lot of money but the payments come frequently. Small things that keep stacking up.” Reece says.

                

Reece acknowledges the concept of a “side hustle” which is the term to describe any side job outside of one’s primary job that helps students make money. He mentions that a side hustle can be good as long as it’s legal.

                

“As long as you’re not selling hard drugs… it’s not bad. Cutting lawns, maintenance, stuff for your neighbors, then that’s okay.” Reece says.

Reece talked about his personal experiences with side hustles as well.

                

“I had one two years ago… I’d help my grandpa do stuff at his house or help my cousin out with his basement. I once had to help my uncle cover up a hole in his basement. I got paid pretty well.” Reece says.

                

When asked if he felt more compelled to have a side hustle now than he did a few years ago, Reece surprisingly said that he didn’t.

                

“No, because it’s not steady work. You have to be keener on finding work yourself instead of having others find you for small jobs.” Reece says.

                

Reece says that he’s tried to manage his funds by limiting his spending and getting a job. He also talks about budgeting.

                

“Plan out your money… you want to be able to see your budget. You want to be able to visually see things that you don’t necessarily need to spend money on.” Reece says.

                

Robby Zink, another sophomore at MSU, believes that most students struggle with budgeting because they don’t have jobs. He mentions how he’s managed to stick to his budget.

                

“Not eating out and limiting that to the weekends. I think that’s the main thing that I spend money on.” Zink says.

                

Zink also spoke on some of the personal lessons he’s learned throughout the process of facing his new challenge of budgeting in college. He mentions how his perception of money has changed.

                

“The value the money. Before college, my parents bought me everything so I never really understood it.” Zink says.

                

Jack Gustavson is also an MSU sophomore but, unlike Reece and Zink, does not have a job. He believes that he can budget by simply “sticking to what he knows.”

“I try to stick to what I can control… things that are already paid for like eating in the cafeteria, books, things like that. I try to avoid spending money on extra supplies that I don’t necessarily need. [finding a job during college] is not necessarily needed for everyone.” Gustavson says.

Although Gustavson does not have a job, he still considers the concept of finding a job to be “important.”

“Whether it’s a job for MSU, working in the café, or working off campus… it can be a good way to get financial help and to get connections for future careers as well.” Gustavson says.

Erica Tobe, a personal finance professor at MSU, shared her opinion on some of the struggles that students face when budgeting.

                

“There’s just so much going on in college, especially during your freshman year… I’m sure lots of students have the intention of budgeting, though.” Tobe says.

                

Tobe also talked about how students can combat the problem of spending too much. She highlighted the importance of “leniency” and how limiting yourself to an even lower amount of “spending money” than listed in your budget is a good strategy as well.

                
“It really helps students learn how to be a little safer with their money… when you hold yourself to a safe limit it’ll allow you to save money on the back end as well.” Tobe says.