The transition from high school to college often means new responsibilities and expenses for many students. Between housing, food, tuition, textbooks, and more, the cost of a college education can add up fast. If you’re currently in school or planning to attend soon, you must know how to budget for a college student, so you can avoid graduating with a mountain of debt.

Here are three things to know about budgeting for a college student.

Make a list:

Do your research and list all the expenses you will face. You may think that you have everything covered, but don’t forget to budget for things like gas money and entertainment. It’s better to plan than to be surprised later.

Set goals and stay on track:

Create a budget that allows you to save money for short-term and long-term goals. Staying on top of what you spend, and cutting back where necessary, can help prevent overspending down the road. If you need help tracking your spending habits, try our Budget Planner Tool or the Expense Tracker Tool.

Determine your monthly income and expenses:

Determining your monthly income and expenses is crucial in creating your student budget. Your monthly payment is made up of any money you receive from the government, parents, or work.

Start by inventorying all your sources of income.

Government funding: OSAP, Student Loans and Grants, or other provincial/territorial student loans and grants

Parents: Child Tax Benefit, Child Benefit, and Universal Child Care Benefit

Work earnings: summer jobs or part-time employment during the school year

List all the expenses that you expect to have in a month. This includes tuition fees, rent, and food costs.

When you add up your expenses, they should not be more than your monthly income. If they are more than what you earn each month, you will have to cut back on some of your expenses.

Make a list of your fixed and variable costs:

Everybody needs a budget. Suppose you’re a student because you don’t have the same built-in financial stability as an adult with a job. The first step in creating a student budget is to list all your sources of income. This income source will be student loans and maybe some part-time work for most students. Next, list your fixed expenses, including tuition and housing. These expenses stay roughly the same each month and year to year. Then list your variable costs, which are everything else. This includes things like food and transportation and more minor expenses such as entertainment and coffee shop visits. The key here is to total up everything you spend money on during the month and include that in this category.

Categorize your budget & expenses:

It’s always nice to have some money left over at the end of the month. It’s one sign that you’re sticking to a budget, and you can use the leftover cash for whatever you want.