Budgeting for Nursing School

Budgeting for Nursing School

This guide examines how nursing students can manage their finances. Continue reading for advice on reducing costs, using free budgeting tools, and finding useful resources for personal financial management. Wondering how to manage your finances while in nursing college? Many students, both at the undergraduate and graduate level, rely on federal student loans to help cover their education expenses. To avoid the challenges of student debt, you can take steps now by creating a budget and learning how to handle expenses while still in nursing school.

According to a 2017 survey by the American Association of Colleges of Nursing, around 76% of undergraduate nursing students and 69% of graduate nursing students took out loans. Many graduate nursing students are concerned about repaying their loans, especially since about 20% of them owe between $40,000 and $54,999. This guide will assist you in monitoring your expenses throughout nursing school, offer tips for saving money on supplies and books, and provide tools for achieving financial stability in the long run.

Managing Your Money as a Nursing Student

How to Develop a Budget for Nursing School

A budget outlines your monthly spending and earnings. Creating a budget for nursing college allows you to understand three types of expenses: fixed, variable, and emergency. By budgeting, you can plan for the future and clearly see your needs for tuition, nursing supplies, and licensing fees.

Budgeting also helps you identify areas where you can cut back on spending. For instance, if you’re spending too much on eating out, you might consider packing your lunch to save money.

Budgets are used by households, companies, and individuals to document income and spending. You can create a budget using pen and paper, a smartphone app, or an Excel spreadsheet.

1. Keep Track of Your Spending

Nursing students need to be proactive about their finances by keeping track of their spending. Using a budget for nursing college that includes current and future expenses, such as equipment, scrubs, and fees for licensing exams, helps you see where you can save money.
Start by gathering your bank and credit card statements. Organize your expenses into categories:

• Regular bills like rent, car payments, and insurance (fixed monthly expenses)
• Variable bills that change each month, like gas, groceries, and supplies (variable monthly expenses)
• Expenses you pay annually or semi-annually, such as tuition

2. Categorize Your Spending

Next, categorize your spending as either essential or nonessential. Think carefully about what you need versus what you want.
Essential expenses include things like transportation, groceries, and rent or mortgage. Most fixed costs fall into the essential category. Some variable costs, like utilities, are also essential. You should also consider school-related expenses like technology, books, and internet access.

3. Calculate Your Net Income

Your net income is what you earn after taxes and expenses. To calculate your net income, subtract your expenses from your earnings. This simple calculation helps you see if you’re overspending and accumulating debt or if you have extra money to save. If you find that your net income is negative or you have very little extra money, it’s important to find ways to either reduce your expenses or increase your income.

4. Define Your Financial Goals

Think about your short-term and long-term financial goals while you’re in nursing school and after you graduate. When do you plan to pay off your student loans? Are you considering further education after gaining nursing experience? Do you have a savings goal? How can you cut expenses while in school? Answering these questions will help you create a budget for nursing college and secure a healthy financial future.

5. Create Your Budget

Making a budget might seem overwhelming, but there are various helpful options available. Choose a method that suits you, whether it’s using the Federal Trade Commission’s “Make a Budget” worksheet, creating a budget in Google Sheets, or starting a new Excel spreadsheet. You can also follow the popular 50/20/30 rule.
With the 50/20/30 rule, allocate 50% of your income to essentials like rent, food, tuition, and nursing supplies. Dedicate 30% of your earnings to “wants” like dining out, entertainment, and travel. The remaining 20% goes into savings.

Maintaining Your Budget

After you’ve created your budget, it’s important to regularly maintain and update it. Keeping an eye on your budget can help you avoid financial challenges like being unable to pay important bills.

This is especially crucial if you have a tight budget. Online banking makes it easy to review recent transactions, so it’s a good idea for nursing students to take a few minutes each week to check their spending.

Consistent monitoring is particularly important for variable expenses. Some costs stay relatively stable, but others can vary significantly. For example, heating costs might rise during the colder months in certain regions.

On the other hand, you might discover a new discount grocery store that can lower your food expenses. Regularly reviewing your budget allows you to spot new patterns and make necessary adjustments. It’s important to reevaluate your budget whenever your income or spending changes.

Budgeting Tools

Technology has made budgeting much more convenient. There are various free financial planning tools available, whether you want to track your spending, get advice from financial experts, or pay for money management services. Here are some budgeting tools that can help you budget for nursing college, save money, and manage debt after you graduate:

– Microsoft Excel and Google Sheets:

Many financial institutions offer downloadable budget templates or online budget solutions based on these applications. These tools can help you calculate your income, total expenses, and even perform more advanced tasks like cash flow analysis and debt reduction strategies. There are tutorials available for each of these budgeting tools.

– Mint:

One of the earliest online personal finance solutions, Mint offers a wide range of free financial planning tools. Users can set up and track monthly and yearly budgets, manage debt reduction, savings, and cash flow. Mint’s “trends” feature displays spending by category or merchant over time. Graphs show your spending and income across different categories and time periods. Mint is also available as a mobile app.

– You Need A Budget (YNAB):

NAB provides strong budget tracking solutions. For instance, it alerts users when they exceed their budget in a specific category. YNAB also offers detailed recommendations for adjusting your budget. The service places emphasis on effective budgeting through goal tracking, reporting, and personalized coaching.

– Personal Capital:

his personal finance software provides various analytical tools to help users reach their financial objectives. The free version includes a multifactor net worth calculator, a fee locator for all your financial accounts, investment performance analysis, and retirement planning tools. Paid users can access financial advisors and other benefits.

– Left to Spend:

his app helps you manage your daily spending and stick to your budget. Based on your income and current budget, the app shows you the remaining funds you have each month. It also sets a daily spending limit to help you meet your goals.

– Wally:

Wally is a free personal financial management app with highly customizable tracking options. You can scan receipts and categorize expenses, saving frequently used merchant data. While it doesn’t link to financial accounts, Wally provides a clear snapshot of how well you’re sticking to your budget.

Money-Saving Tips for Nursing School

By following these budgeting tips for nursing college, you can take advantage of student discounts and even find ways to earn money while studying nursing.

Develop Healthy Spending Habits

Cultivating responsible spending habits during college lays the foundation for effective financial management throughout your life. Even if your income and expenses seem modest, regularly tracking your cash flow establishes important habits for managing your personal finances. Spending Tracker, Habitica, and Slice are all excellent tools for tracking your spending. As your income grows, you can also build your credit by using credit cards responsibly.

Prepare Meals at Home

Food expenses can vary greatly among essential expenses. If you were to buy a $10 lunch every day, you’d spend over $2,000 on lunch alone in a year. On the other hand, if you brought your own lunch, you’d only spend about $6.30 each day. While saving money in this category requires planning and time, it can pay off for organized college students on a budget. You can consider using meal-planning apps to get started.
Essential expenses include costs such as transportation, groceries, and rent or mortgage. Most fixed costs qualify as essential. Certain variable costs, including utilities, fall into the essential category. Nursing students should factor in school expenses like technology, books, and internet access.

Utilize Student Discounts

College students can benefit from a variety of discounts, depending on the school and its surroundings. Students on a budget can often find free or discounted entertainment options around campus, some of which might also include food. Your school’s student services department can provide information about discounted resources for students. Many retailers and food service providers near college campuses offer discounts for students. Licensed nurses also have access to many special offers.

Find Affordable Textbooks

Before heading to the campus bookstore, consider alternatives like renting textbooks or buying them online. Some schools offer used textbooks, and students can also look for used bookstores off-campus. Some learners opt for e-books or PDF versions of books, which can often be more affordable. Websites like StudentRate offer discounted options.

Save on Personal Nursing Supplies

Nursing students often need to buy lab supplies such as stethoscopes, manual blood pressure cuffs, oral thermometers, bandage scissors, and scrubs. Those on tight budgets can purchase used supplies or take advantage of discounts. Some schools may require specific scrubs with the school’s name, but companies like Crocs and FIGS offer student discounts. Members of the National Student Nurses’ Association can also enjoy discounts at Uniform City and Scrubs and Beyond. The 3M School Sales Program even offers free stethoscopes to student organizations when they buy 10. To find more great deals, you can visit our Special Discounts and Deals for Nurses page.

Graduate Sooner

Aspiring nurses can reduce their educational expenses, including student loan debt, by completing their studies earlier. High school students can plan ahead by taking Advanced Placement (AP) and dual credit classes to earn college course credits. In college, nursing students should take a full load of courses. Graduating early also means you can start earning a salary sooner.

Setting Up for Financial Success

Pursuing a nursing degree can lead to a financially rewarding career, but the promise of a good income shouldn’t deter students from being financially proactive. Starting budgeting practices early in college can help nursing students map out their financial responsibilities and graduate with minimal student debt. Remember, the best budget is the one that works for you.

Six Valuable Lessons I Learned During My Final Year of Nursing School

Budgeting Terms

Total Income:

This refers to all the financial resources available to you, including savings, financial aid, external support, and other sources. It should also include any expected income from a job.
Monthly Income: Typically, this is the income you receive from employment every month, although it could also include regular funds from other sources. This amount might change based on the number of hours you work each month.

Discretionary Income:

This is what’s left after you’ve covered your essential financial obligations. Discretionary income is often used for spending or saving.
Essentials: These are expenses you must pay to live and succeed in school. Examples include housing, basic utilities, transportation, and health insurance. You also need to cover educational expenses like tuition, books, technology, and uniforms.

Nonessentials:

These are expenses that enhance your life but aren’t necessary for survival. Examples include meal delivery services, video games, and premium gym memberships.

Fixed Expenses:

These expenses stay the same every month. Examples include housing costs, car payments, and insurance premiums.

Variable Expenses:

These expenses change from one month to another. For instance, utility costs can vary depending on usage.

Emergency Funds:

These funds are set aside for unforeseen expenses like unexpected car repairs or medical bills. Budgeting for emergencies is an important practice.

Additional Resources

Creating Your Budget
The Federal Student Aid office provides guidance on budgeting for students. The website offers step-by-step instructions for creating and maintaining a budget and includes a glossary of relevant terms.

WiseBread
Dedicated to thriving on a limited budget, this website regularly shares tips for a frugal lifestyle. You can learn how to save money on groceries, health and beauty products, and entertainment.

Zen Habits Golden Money List
Blogger Leo Babauta has compiled numerous articles on personal finance into a single list. Here, you can access advice on economical living, reducing debt, and effective budgeting.

Kiplinger
With a longstanding reputation in personal finance, Kiplinger offers advice on investing, money-saving strategies, and intelligent spending.

Budget Template for New Grads
Frugal Rules, a platform focusing on debt reduction and personal financial management, provides budgeting strategies tailored to recent college graduates.

Mr. Money Mustache
A popular and insightful personal finance website that offers practical guidance on living frugally, managing debt, and building wealth. You can also access Mr. Money Mustache through their app.