Budgeting Basics for College Athletes: Navigating Scholarships and Expenses

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.

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1. Understand the Components of Your Scholarship

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:

  • Tuition: Many athletic scholarships cover the cost of tuition, which is a significant part of your education expenses. However, be aware of additional fees (like lab or activity fees) that might not be covered.
  • Room and Board: Some scholarships cover housing and meals, but this may not extend to off-campus living or dining beyond the meal plan. Make sure you know whether your scholarship covers on-campus or off-campus housing.
  • Books and Supplies:Your scholarship might include a stipend for books, but keep in mind that this stipend may not fully cover the cost of all your required materials.
  • Transportation and Miscellaneous Expenses:Scholarships typically don’t cover everyday costs like transportation, personal items, and entertainment, so these will need to come out of your own pocket.

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.

2. Create a Monthly Budget

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:

  • Scholarships or stipends
  • Part-time jobs or work-study programs
  • Family support
  • Name, Image, Likeness (NIL) deals (if applicable)
  • Savings from summer jobs or other opportunities

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:

  • Housing: If your scholarship doesn’t cover rent, make sure this is at the top of your list.
  • Utilities: If you live off-campus, don’t forget to budget for things like electricity, water, and internet.
  • Groceries and Meal Plan: If you have a meal plan, budget for additional food costs, especially for snacks or meals outside your plan.
  • Transportation: Whether it’s public transportation, gas, or rideshare services, you’ll need to account for how you get around.
  • Books and Supplies: Even if your scholarship covers a portion of your supplies, you’ll likely need extra for notebooks, pens, and study tools.
  • Personal and Miscellaneous:Don’t forget to include items like clothing, toiletries, and any entertainment expenses.
  • Savings and Emergency Fund: It’s important to set aside money each month for savings or unexpected costs, like a broken laptop or medical expenses.

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.

3. Prioritize Your Spending

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.

  • Needs:These are your essential expenses, like rent, food, transportation, and utilities. These should always be covered first before you spend money on non-essentials.
  • Wants:These are the things that are nice to have but aren’t necessary. This might include eating out, entertainment, or buying new clothes. While it’s okay to spend on wants occasionally, you should only do so after covering your needs and ensuring you’re saving money.

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.

4. Plan for Unexpected Expenses

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.

5. Use Financial Tools and Resources

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.

6. Plan for Life After College

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.

7. Ask for Help When You Need It

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.

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