December 10, 2024 5 min read
If you’re a college athlete, your time is split between training, academics, and competition. You’ve developed the discipline to manage a demanding schedule, but managing your finances can sometimes feel like a whole new ballgame. Whether you’re on a full ride, partial scholarship, or covering your own way through school, learning how to budget is a crucial skill that will help you now and in the future.
Navigating scholarships, grants, and the various expenses that come with college life can feel overwhelming. As a financial coach, I’ve worked with athletes across all levels, helping them create financial game plans that set them up for success. Let’s dive into the budgeting basics every college athlete needs to know so you can take control of your finances and avoid unnecessary financial stress.
If you’re receiving a scholarship, congratulations! Scholarships can ease a lot of financial pressure, but it’s important to understand exactly what your scholarship covers and what it doesn’t. Every scholarship is different, and there’s often a gap between what’s covered and your actual living expenses.
Here’s a breakdown of common scholarship components:
Knowing exactly what your scholarship covers is the first step toward creating a realistic budget. Once you understand your financial aid package, you’ll know what expenses you’re responsible for covering on your own.
A budget is your financial roadmap. Just like you follow a training schedule to stay on track with your sport, a budget will keep you on track with your finances. Start by listing your sources of income and your expenses.
Your income might come from several sources, like:
Make a note of how much money you expect to receive each month. If your scholarship disbursements or income fluctuate, try to estimate your average monthly income so you can plan accordingly.
Now, list all your expenses. Common categories for college athletes include:
Once you have a full picture of your income and expenses, compare the two. If you’re spending more than you’re bringing in, it’s time to make some changes.
Just like you prioritize your training schedule, you need to prioritize your spending. The key to successful budgeting is differentiating between your needs and wants.
If your budget is tight, you may need to make some sacrifices in the short term. For example, if you’re overspending on takeout, consider meal prepping or cooking at home to save money. Look for student discounts and take advantage of any free or low-cost campus resources available to you.
Life is unpredictable, and unexpected expenses can pop up at any time. As a college athlete, you might have travel costs for games or competitions, sudden medical expenses, or a need for new equipment. Having a small emergency fund can be a lifesaver in these situations.
Start by setting aside a small portion of your monthly income—aim for at least $25-$50, if you can. This money can act as a financial cushion, allowing you to handle emergencies without going into debt or stressing about where the money will come from.
Over time, as your income increases, work to build your emergency fund to cover at least three to six months of living expenses. This may take time, but having even a small safety net will make a big difference.
Managing your money doesn’t have to be overwhelming. There are plenty of apps and resources available that can help you track your spending, stick to your budget, and reach your financial goals. Some popular apps include,YNAB (You Need a Budget),CoPilot andEveryDollar. These tools can help you see where your money is going, remind you of upcoming bills, and help you avoid overspending.
Additionally, many universities offer financial literacy programs or workshops specifically for student-athletes. Take advantage of these resources to learn more about managing your money, understanding your scholarship, and planning for your financial future.
While it may seem far off, now is the perfect time to start planning for life after college. If you’re hoping to go pro in your sport, understanding the financial realities of a professional athletic career is essential. For those transitioning into the workforce, having a clear plan for student loans, future housing, and career goals will set you up for success.
One of the biggest financial challenges college athletes face after graduation is losing the financial support they had during school. Scholarships, stipends, and meal plans may disappear overnight, leaving you with significant new expenses. By creating a post-graduation budget and saving while you’re still in school, you’ll give yourself a head start in this transition.
You don’t have to navigate the world of personal finance on your own. Reach out to a financial coach, mentor, or advisor who can help you build a plan that works for your unique situation. As a college athlete, you already know the value of having a coach to guide you through your sport—think of financial coaching the same way. Having someone to help you strategize, set goals, and stay accountable can make all the difference in achieving financial success.
Budgeting as a college athlete is about understanding your financial aid, living within your means, and planning for unexpected expenses. Remember, your financial health is just as important as your physical and academic performance, and with the right plan, you can win in all areas of your life.