Managing money as a college student can be tricky. Balancing finances isn’t always easy between tuition, rent, and late-night food runs. But how much do students typically have saved? Is your bank account on track, or are you falling behind?

A student’s bank balance depends on several factors—where they go to school, whether they have a job, and how much financial support they receive. Some students budget carefully and build savings, while others struggle to make ends meet. The reality is that college finances vary widely, but having a baseline idea of what’s common can help you make informed decisions.

Key Takeaways

  • Student bank account balances depend on income, expenses, and financial support.
  • College students have higher expenses, making it harder to save.
  • Part-time jobs, financial aid, and family contributions are common income sources.
  • Rent, tuition, and food take up most of a student’s budget.
  • Budgeting and tracking expenses help manage money effectively.
  • Cutting unnecessary costs and using student discounts increase savings.

Importance of Financial Awareness for Students

College is a time of independence, and managing money wisely is a big part of that. Yet, many students enter college without a solid understanding of personal finance. In fact, around 53% of college students feel unprepared to manage their money. This lack of financial awareness can lead to overspending, unnecessary debt, and financial stress.

Understanding your finances early on helps you make a better saving, budgeting, and spending decisions. It’s not just about making ends meet—it’s about setting yourself up for future stability. Students who actively track their expenses and stick to a budget are less likely to experience financial stress.

Without proper financial planning and awareness, it’s easy to rely on credit cards or student loans without fully understanding the long-term impact. The average college graduate leaves school with over $30,000 in student loan debt. Learning how to budget and save now can help reduce financial strain after graduation.

Average Savings College Students Have

The financial world for students is quite different, depending on whether they are in college or high school. Knowing these differences helps us understand how much students save by age. It also shows what affects their money, including the importance of understanding annual percentage yield (APY) on savings.

How Much Have College vs. High School Students Saved?

The difference in bank account balances between high school and college students comes down to financial responsibilities and income sources. High school students often rely on allowances, part-time jobs, or summer work for savings. Since they typically have fewer expenses, they may be able to save a larger portion of their earnings.

College students, on the other hand, face higher expenses like tuition, rent, and groceries. While some work part-time jobs to support themselves, others rely on different types of financial aid or parental support. As a result, their bank balances fluctuate more, especially if they rely on debit cards for everyday purchases. 

Around 64% of college students maintain a separate savings account. Additionally, 1 in every 3 students have at least $1,000 saved, indicating a proactive approach to managing their finances. 

Average Bank Account Balance by Age Group

A student’s bank balance tends to increase with age and financial experience. Younger students in high school may have minimal savings, with balances growing as they enter college and start managing their own expenses. By the time students reach their early 20s, those with a steady income from jobs or internships often see their bank balances rise.

According to data from the Federal Reserve, the median transaction account balance for individuals without a high school diploma is $900, while those with a high school diploma have a median balance of $3,030. Individuals with some college education have a median balance of $5,200, and those with a college degree have a median balance of $10,000. 

However, this is not always the case. Many college students live paycheck to paycheck, covering their immediate needs rather than saving for the future. The financial habits formed during these years—such as budgeting, avoiding unnecessary debt, and setting savings goals—can significantly impact their post-college financial stability.

Impact of Parental Support on Student Savings

Parental support plays a crucial role in shaping a student’s financial situation. Some students receive regular financial assistance for tuition, housing, or daily expenses, which allows them to save more. Others are financially independent and must cover their own costs, making it harder to build savings, especially when they have to use debit cards for daily expenses.

Additionally, students whose parents teach them financial management skills, like budgeting and responsible spending, tend to handle their money more effectively. While financial support can provide stability, learning how to manage money wisely is just as important for long-term success.

Where Does Student Money Come From?

Managing finances in college often means piecing together multiple sources of income. Some students work part-time, while others rely on financial aid or family support. Understanding where student money comes from can help you plan better and make smarter financial decisions.

Part-Time Jobs

Many students work part-time to cover food, rent, and entertainment expenses. Whether it’s a campus job, retail position, or freelance work, earning an income helps students gain financial independence and work towards their savings goal. Around 40% of college students work full-time while attending school.

Balancing a job with coursework can be challenging, but it teaches time management and budgeting skills. Even working 10 to 15 hours per week can make a difference in covering daily expenses without sacrificing academic performance.

Financial Aid and Scholarships

For many students, financial aid is the biggest source of funding. This includes grants, loans, and work-study programs, which help cover tuition, housing, and other expenses. The Federal Pell Grant, for example, provides up to $7,395 per year for eligible students, reducing their out-of-pocket costs.

Scholarships are another critical resource. Unlike loans, they do not need to be repaid, making them one of the best ways to finance education. Some scholarships are based on academic merit, while others consider financial need, extracurricular activities, or specific career goals. Applying for multiple scholarships can significantly ease financial stress.

Parental Allowance and Family Contributions

Family support plays a huge role in student finances. Many parents contribute to tuition, living costs, or everyday expenses, helping students avoid excessive debt. A report by Sallie Mae found that parents cover about 43% of college costs using savings, income, and loans.

However, not all students receive financial help from their families. Some must be entirely self-sufficient, managing tuition, rent, and other expenses on their own. Budgeting and financial aid become even more essential for those without parental support.

How Students Spend Their Money: College Savings vs. Expenses

College students juggle a mix of income and expenses, often trying to save while covering the rising costs of education and daily life. But where does their money actually go? Understanding the balance between savings and expenses can help students manage their finances better and avoid unnecessary debt.

Savings Habits

Saving money in college isn’t always easy, but many students make an effort to put money aside. Some students build up their savings through part-time jobs or family contributions, while others struggle to keep any extra cash in their accounts, making it essential to set aside funds regularly. 

Around 34% of college students have at least $1,000 in savings, indicating that many are trying to be financially responsible. However, 10% of students have no savings at all, making them more vulnerable to unexpected expenses.

Students who receive parental support often have more room to save, while financially independent students tend to focus on covering necessities first. With tuition, rent, and food costs constantly increasing, it’s no surprise that saving can be a challenge. Despite these financial pressures, students who budget carefully and track their spending are more likely to build a financial safety net, even if it’s a small one.

Major Expenses

Students face several recurring costs, some of which are unavoidable. Here’s where their money typically goes:

  • Tuition & Fees: College tuition is the biggest expense, and even with scholarships and financial aid, many students still pay out of pocket.
  • Housing & Utilities: Whether living on campus or renting an apartment, housing can take up a significant portion of a student’s budget.
  • Food & Groceries: Students spend an average of $673 per month on food, including dining out and meal plans.
  • Books & School Supplies: The cost of textbooks and supplies can add up quickly, with students spending an average of $1,200 per year on academic materials.
  • Transportation: Gas, public transit, or rideshares are necessary for many students, especially those commuting to school.
  • Entertainment & Personal Spending: Streaming services, concerts, social events, and clothing are common discretionary expenses that vary based on personal lifestyle.

How to Increase your Savings as a Student?

Saving money as a student might seem tough, but small financial habits can make a big difference. Whether you are trying to build an emergency fund, save for a big purchase, or simply stretch your budget, these practical strategies can help you grow your savings without feeling restricted.

Create a Budget and Track Expenses

A clear budget is the foundation of smart money management. By tracking where your money goes each month, you can identify spending habits and find areas to cut back. Free budgeting apps like Mint or YNAB (You Need a Budget) can help you stay on top of your finances. Students who budget and track expenses are more likely to save consistently and avoid unnecessary debt, ultimately helping them achieve their savings goal.

Take Advantage of Student Discounts

Being a student comes with perks. Tons of brands offer discounts on everything from tech and entertainment to clothing and travel. Companies like Spotify, Amazon, and Adobe have student pricing, while local businesses may also offer savings with a student ID. These discounts can help you save hundreds of dollars annually on essential expenses.

Cut Down on Unnecessary Spending

It’s easy to overspend on dining out, subscriptions, and impulse buys. The average college student spends $673 per month on food, with much of it going to takeout and restaurants. 

Cooking at home, meal prepping, and using campus dining plans wisely can help you save a significant amount. Similarly, reviewing your subscriptions, like streaming services or gym memberships, can free up extra cash.

Buy Used or Rent Textbooks

Textbooks are one of the biggest academic expenses, but there are ways to cut costs. Instead of buying new books, consider renting from platforms like Chegg or Amazon Rentals or purchasing used copies from sites like AbeBooks. Some students save even more by sharing books with classmates or using digital versions when available, allowing them to set aside more money for their savings goal.

Automate Your Savings

Setting up automatic transfers to a savings account, even if it’s just $10 or $20 per paycheck, can help you build a habit of saving without thinking about it. Some banks even offer round-up savings programs, which round up your purchases and deposit the difference into your savings account. Over time, these small contributions add up.

Conclusion

A college student’s bank account balance varies widely based on factors like income, expenses, and financial support. While some students manage to save, others struggle to stay ahead of tuition, rent, and daily costs. Understanding where your money comes from, how you spend it, and ways to increase your savings can help you build better financial habits.

About College Journey

Managing money in college is just one piece of the puzzle—getting into the right school is another big step. That’s where College Journey comes in. With Alice, your AI-powered college counselor, you will get personalized guidance on how colleges evaluate key factors like GPA, test scores, extracurriculars, and essays.

Whether you are figuring out how your academic achievements impact admissions, looking for ways to stand out in activities, or crafting a compelling personal statement, Alice is here to help. Plus, with tools to compare schools, track your progress, and get tailored recommendations, College Journey makes the application process stress-free and allows students to set aside time for financial planning.

Just like smart financial habits set you up for success, the right college plan can open doors to your future. And the best part? It’s completely free to sign up!

FAQ

How much emergency savings should a college student have?

A good rule of thumb is to save at least $500 to $1,000 for unexpected expenses like medical bills, car repairs, or last-minute travel. Aim for one to three months’ worth of essential expenses if possible.

What is the best type of bank account for college students?

A student checking account with no monthly fees and a high-yield savings account for growing savings is ideal. Many banks offer student-friendly features like free ATM access and overdraft protection.

Should college students use credit cards to build credit?

Credit cards can help students build credit if used responsibly. Stick to low-limit, no-annual-fee student credit cards, pay off the balance in full each month, and avoid unnecessary debt.

How can students avoid overspending in college?

Set a budget, track expenses, and cut back on non-essential spending like eating out, subscriptions, and impulse shopping. Using cash or a prepaid card for discretionary spending can also help.

Is it better to live on-campus or off-campus to save money?

It depends on the location and housing costs. On-campus housing may include utilities and meal plans, while off-campus living can be cheaper if you split the rent and cook meals at home. Compare costs before making a decision.