Kim Finkle, MBA, Financial Advisor

Creating a budget for a student growing up in two households may be difficult but not impossible

Divorced parents are typically responsible for taking on extra financial responsibilities to help pay for college expenses. The degree of responsibility will vary from family to family, but it typically involves both parents helping to financially support the child. Separated parents, on the other hand, typically have a financial arrangement in which one parent pays for most of the college expenses while the other parent provides more informal support and encouragement. In either case, it is important that the student and their parents come up with a realistic budget that will help them pay for college expenses while still leading an enjoyable, stress-free lifestyle.

 

The first step in creating a budget for a college student raised by divorced or separated co-parents is to identify the student's financial goals. What do they want to accomplish in terms of their education and career? Answering this question can help parents and students create a plan for how to allocate their financial resources. Once the student has identified their goals, it's important for the parents to sit down and discuss how they plan to split the costs associated with college expenses. It's important for everyone to be on the same page about who pays for what, and when.

 

Another important aspect of budgeting for college students is setting limits on spending. College students can get carried away with expenses like eating out and late-night take-out orders, which can quickly add up and cause serious financial problems. Setting limits can help the student stay on track with their budget and provide some much-needed discipline. One way to set limits is to have a “no-spend” day each week where the student is not allowed to purchase anything. They can plan out their meals and snacks ahead of time, and use that day to focus on learning instead of spending.

 

Next, it is important to talk about budgeting with the student's parents. Parents should discuss their shared responsibilities in helping the student pay for college. This includes talking about how much each parent can afford to contribute, and how the student will budget for living expenses and other costs. It is also a good idea for parents to set a reasonable allowance for the student and provide guidance on how to use it wisely.

 

It can also be helpful to seek out outside sources of financial aid. College students can apply for merit-based financial aid, grants, and scholarships in order to help cover the cost of tuition and other expenses. There is also the potential for taking out student loans, although this should be done with extreme caution and only as a last resort.

 

Finally, it is important to have open and honest conversations between the student and their parents about the budget. This allows each person to better understand the financial situation and come up with creative solutions. For example, they may consider taking on additional jobs or job-sharing responsibilities to help increase income, or they may be able to find creative ways to save money on everyday expenses.

 

Creating a budget for a college student raised by divorced and separated co-parents parents can be daunting, but it can be done. With clear communication and a few simple strategies, it is possible to create a budget that will work for everyone involved and help the student achieve their educational and financial goals.

 

How to teach college students to budget as a coparent

First, it is important to help college students understand the basics of budgeting. Explain the importance of understanding their income and expenses, and how to manage their money effectively. Have the students create a budgeting worksheet or spreadsheet that lists their expenses and income.

 

Second, have the student define their goals. What do they hope to accomplish by budgeting and coparenting? Having clear goals can help them stay focused and motivated throughout the budgeting process.

 

Third, provide the students with resources that can help them budget as coparents. This may include websites, books, or even one-on-one consultations with experienced coparents. Discuss the pros and cons of different approaches to budgeting and how they can be customized according to the student’s individual circumstances.

 

Fourth, encourage the student to practice budgeting with real money. Have the student use their own money to pay for the expenses that they have budgeted for. Allow the student to make mistakes, but reinforce the importance of learning from them and not repeating the same mistakes.

 

Finally, offer support to the student during the budgeting process. Encourage them to ask for help or guidance if they are having trouble understanding budgeting as a coparent. Help them stay motivated and remind them that it is worth it in the long run to budget and save.

 

Affordable college student budget

Budgeting is one of the most important skills a college student can learn. Developing a budget is the key to making the most of your finances during the school year. Here are some tips on creating an affordable, yet effective budget for college students:

 

1. Set Financial Goals: Before creating your budget, it’s important to set some financial goals. Decide where you’d like to be financially in three months, six months, a year, and beyond. Knowing these goals will give you something to strive for and help you better stick to your budget.
2. Set up a college savings plan: Set up a college savings plan such as a 529 plan to fund to pay for tuition and living expenses.
3. Track Your Spending: Tracking your spending will help you stick to your budget and can help you identify any potential problem areas. Write down all your expenses for the month and compare them to the amount of money you’re bringing in.
4. Prioritize Your Spending: Making a list of essential and non-essential expenses will help you decide where to allocate your funds. Remember to save a portion of your income each month and use it to pay off your debts, if any.
5. Track Savings: Use a savings account to automatically save money each month. This will help you reach your financial goals in the long term.
6. Live Within Your Means: Sticking to your budget isn’t just about cutting back. It’s also about living within your means. Don’t spend more money than you have, or you’ll end up in a financial mess down the road. Make sure to budget for the unexpected, too.

 

25 Budgeting hacks from college students

1. Meal prep: Make a larger batch of meals and put them in single-serving Tupperware containers so you have an easy grab-and-go meal for later in the week.
2. Buy minimally processed foods: Whole grains, legumes, and other minimally processed foods are much cheaper than their pre-packaged counterparts, and they can be just as tasty.
3. Take advantage of cash-back apps: Sign up for apps that give you cash back on purchases you already make and are an easy way to save a few dollars.
4. Shop at thrift stores: Thrift stores offer gently used items at a fraction of the price. Look here for clothes, furniture, and even kitchen appliances.
5. Use the library: From books to DVDs and magazines to audiobooks, the library has a lot to offer in terms of entertainment.
6. Pack lunch: It may take some forward planning and meal prep, but packing lunch instead of eating out offers huge savings.
7. Skip the gym: Exercise doesn’t have to be expensive. Skip the gym and try running, hiking or biking outside.
8. Make your own coffee: Stop by the grocery store for coffee beans and make your own instead of paying for a fancy cafe.
9. DIY gifts: Make gifts for your friends and family instead of buying them. It’ll be more meaningful and cost-effective.
10. Buy in bulk: Head to the store for bulk items like dry beans, rice, and nuts, which you can get for a fraction of the cost of pre-packaged sizes.
11. Buy used textbooks: Instead of paying full price for textbooks, shop online or check with a friend who already had the class.
12. Cut back on drinking: It’s easy to spend a lot of money during a night out, so opt to have drinks at a friend’s house or plan sober activities.
13. Have grocery delivery days: Limit grocery shopping to one day a week and have your groceries delivered so you don’t impulse buy.
14. Carpool and UberPool: Split the cost of driving when you can and use ride-sharing services such as UberPool to reduce your total fare.
15. Take advantage of student discounts: Many businesses offer discounts for student IDs and other student benefits, so make sure you ask if they exist.
16. Research free student programs: Many cities offer free or discounted classes and events for students to take advantage of, so take a look and see what’s available.
17. Make use of public transportation: Invest in an unlimited monthly pass or look into student discounts so you can use public transportation to get where you need to go.
18. Make a budget: Make a budget and stick to it. Try to keep track of all your income and expenses and set yourself limits.
19. Cut out unnecessary expenses: Identify what expenses you don’t need and don’t waste money on them. This can include small costs like coffee and large costs like cable.
20. Negotiate prices: Get deals on items by haggling or asking if there is a student discount.
21. Look out for sample sales: You can get test products or items that have been barely used at a fraction of the cost.
22. Sign up for rewards points: Many supermarkets, online retailers and other shops offer reward points which you can use for discounts.
23. Cut the cable: Most streaming services are now cheaper than cable TV. Cut out this expense and you’ll save more money each month.
24. Sleep in: If you’re tired, skip some errands to save money on petrol and minimize impulse spending.
25. Sell or trade your stuff: If you don’t need it anymore, consider selling it or trading it for something else that you do need.

 

College student budget examples

Annual Budget: 

Housing and Utilities: $5,000

Food: $3,800

Transportation: $900

Books and Supplies: $800

Personal Care: $300

Clothing: $450

Tuition and Fees: $5,000

Miscellaneous: $1,000

Savings: $500

TOTAL: $17,950

Co-parent Annual Contribution:

Dad Pays: $8,000

Mom Pays: $7,000

Difference: $17,950 - $8,000 - $7,000 = $2,950

Student's Respnsibilty: $2,950. Can be covered with a part time job or a student loan.

 

Monthly Budget:

Housing and Utilities: $417

Food: $317

Transportation: $75

Books and Supplies: $67

Personal Care: $25

Clothing: $38

Tuition and Fees: $417

Miscellaneous: $83

Savings: $42

TOTAL: $1,496

 

Co-parent Monthly Contribution:

Dad Pays: $700

Mom Pays: $600

Difference: $1,496 - $700 - $600 = $196

Student's Respnsibilty: $196. Can be covered with a part time job or a student loan.

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.