June 23: Budgeting for Your College Student

Dear parents and families,

This week’s update talks about how to budget for your college student. As we often say, there is no right or wrong – only what is right for your family. But having open conversations now about spending money (and who pays for what) will be very helpful.

Action Item Tracker

Health and Immunization Forms
Due July 1
We keep reminding families of this one because it is so crucial! Students must upload required medical documentation to their Deacon Health Portal by the July 1 deadline, lest it impact their ability to move in on time. 

• IMPORTANT: Please remind your Deacs to check their secure messages in the Deacon Health Portal regularly to ensure they are not missing any emails about their uploaded documentation. Sometimes students think simply uploading the required documentation is all they need to do. Some students dohave errors that affect their compliance with NC immunization requirements, so please ask them to check their Deacon Health Portal messages.

Featured Topic: How Much Spending Money Does a First-Year Student Need?

• One of the questions incoming families often ask is: How much spending money should my student have each month? Every family has different financial circumstances, so there is no one-size-fits-all answer, but it helps to think about what this money is actually for.
• Most students are not using spending money for tuition, housing, or a meal plan. They are using it for the extras of college life: the things that come up between move-in and Thanksgiving, between class and dinner, or between “I have everything I need” and “I forgot I need more shampoo.”
• Based on feedback from past families, common monthly expenses included:
  • Meals off campus: fast food, coffee, late-night snacks; DoorDash; groceries/snacks for the room
  • Target, Walmart, CVS, Amazon, and other “odds and ends” runs
  • Toiletries, personal care items, over-the-counter medicine, haircuts, nails, and hygiene supplies
  • Entertainment such as movies, concerts, bowling, golf, local events, and weekend activities
  • Transportation, including gas, Uber/Lyft, Zipcar, and chipping in for friends’ gas
  • Clothing, thrift shopping, Wake gear, tailgate outfits, dressy-event clothes, and room decorations
  • Gifts, friends’ birthdays, club sports merchandise, extracurricular costs
  • Occasional trips, road trips, local outings, or special experiences with friends
• Families provide spending money to their students in different ways:
  • Some send a set amount monthly, which helps students learn to pace themselves. 
  • Others send money weekly, which can be helpful for students who are still learning how to budget. 
  • Some families put money on a debit card or transfer funds as needed. Others have students use a credit card that their parents pay off.
    • This option can be convenient, but it may not always teach the lesson families intend. If a student knows the bill will simply be paid at the end of the month, it can be harder for them to connect daily choices with a real limit. A credit card can also make small purchases feel invisible until they add up. For some students, a debit card or fixed weekly/monthly allowance creates a clearer sense of “this is what I have to work with.”
  • Some families ask students to get a job (on campus or otherwise) to make their own spending money.
    • Pro tip: Campus Recreation is the largest student employer on-campus with over 350 student employees. They offer a variety of student positions, including lifeguards, sports officials, Outdoor Pursuits trip leaders, and many, many more!
  • There is no right or wrong, just what works for your family
• A good family conversation about money might include:
  • What will we pay for automatically? Examples: books, prescriptions, travel home, medical needs, clothes, required supplies.
  • What is the student expected to cover from their own spending money?  Examples: coffee, meals out, Target runs, Uber, entertainment, clothes beyond the basics (e.g., Halloween costumes, concert t-shirts, etc.).
  • How often will money be provided? Weekly may help with pacing; monthly may build more independence.
  • What happens if the money runs out? This is worth discussing before it happens!
• And one important note from a past parent: families may want to make sure students always have access to safe transportation money, including Uber or Lyft, so they can leave any situation where they feel uncomfortable or unsafe.

Closing Thoughts

• The goal is not just to choose the “right” dollar amount. It is to help students practice managing money, making choices, and understanding that college spending is often less about big purchases and more about the steady stream of coffee, snacks, rides, toiletries, Target runs, and social plans that make up everyday student life.

You’ll hear from me again next Tuesday!

Betsy Chapman, PhD (‘92, MA ‘94)
Executive Director of Family Communications