Preparing a budget
» Estimate all sources of funds. The first step in preparing a budget is to identify all sources of funds. Possible sources of funds include student loans, savings, scholarships, work-study grants, student employment earnings, and family support.
» Estimate expenses. Once you have identified all available funds, potential expenses that may arise during the school year must be considered. These expenses will fall into one of two categories: fixed and variable.
Fixed expenses are those which will not vary with the passage of time like tuition fees, books, college fees etc. but Variable expenses are those which will fluctuate during the year depending on the needs and wants of the students like travel, entertainment, telephone and clothes etc.

Preparing a reasonable budget and sticking to it is considered to be a basic principle of good financial planning. By assisting college-bound students in developing and maintaining their own budget, parents can help students make ends meet during their college years while helping them develop good money management skills they will be able to use for the rest of their lives.

How much a student would spend for their living and day-to-day expenses while they are studying will vary according to their personal needs and wants. But here we look at general expenses made by students during their college life.
i) First would be tuition fee. Tuition fees can be at the range of $1,500 – $2,500 for one year course. Take note that public colleges have smaller tuition fees than private colleges.
ii) Second would be accommodation expenses. It depends on that whether the student will be living in hostel for study or at home. A student in college usually would try to find work in between to cover the cost of living. It is something that should be considered before going to college because you have to think of things like rent, food, bills and other travel costs. A common student would need an average of $1,000 extra for these extra expenses.
iii) Third are the materials you need to study. These are the givens like books, bags, equipment and other stationary items including day to day expenses could cost to at least $1,000 a year.
iv) Other Expenses will include travel, clothes, telephone and entertainment etc.
Students on some occasions will incur some additional costs. For example, Architecture students will need funds to cover drawing equipment and materials, and field trips. Fine Art students can expect to spend up to $25 a week on artists’ materials.
Tuition and fees are direct costs while all other expenses will vary based on living arrangements, major, marital status and life style.