How to create a college student’s budget

It's no surprise that it's expensive to go to college. According to the College Board, it costs more than $15,000 a year to attend an in-state public university, and private colleges can cost nearly $40,000 a year. As you and your student look into financial aid and scholarships, budgeting is an immediate and active step your student can take to stretch each dollar and establish responsible spending.

Sit down with your student and follow these tips to set up a monthly budget while he/she is in school:

1. Gather what you already know. If your student knows what he/she spends on food and gas each month, write it down. Gather paperwork on any car payments or other regular bills your student pays. Record any flights or long drives home your student plans to make during the semester, so those expenses are accounted for those particular months.
2. List out all other possible expenses that your student will need to pay for each month. Consider school fees -- if that's your student's responsibility -- like room and board as well as tuition. Food, entertainment, transportation, tutors, books, prescriptions and incidentals should also make the list. Check out mint.com for a free, easy-to-use budgeting application that pulls information from credit cards and bank accounts to help you see where your money goes.
3. Identify all sources of income. If your student plans on getting a work-study job or an on-campus job, check out the university's website for wage information. Include student loans and scholarships if they're helping to pay for the student expenses you've already listed. If you and your student will work out an allowance system, record how much money he/she will receive each month as well as when. Check out Campus Dough, which allows parents to prepay for a credit/debit card so their student can safely use a credit card without the risk of outlandish interest rates.
4. If your student's expenses far outweigh the income, look at what expenses can be cut out. Enrolling in college doesn't necessarily doom the student to four years of Top Ramen for every meal, but the majority of college students do need to make sacrifices and learn frugality. If the income outweighs expenses, saving the excess will no doubt benefit your student during a month of unexpected car maintenance or a celebratory dinner after an aced test.
5. Remind your student to regularly keep tabs on the budget. After the first month at school, if the numbers are way off, adjust the budget to reflect realistic expenses and income. Also, allow your student a few months to get in the rhythm of saving and spending. Books, dorm room necessities and back-to-school social events often rack up expenses the first month of college but taper off after that.