by Laila Kouli
College budgeting is already a difficult adjustment; learning how to manage a credit card for the first time, learning how much to save versus how much to spend on groceries or a night out with friends. What makes budgeting even worse is inflation! Inflation, which means the rise in prices of goods and services, can really make the already tight college budget feel nearly suffocating. That’s why the Financial literacy group is here to help educate you on how to make smarter financial decisions.
My Wallet’s Enemy…Inflation
Inflation is a term that gets thrown around a lot, but what does it actually mean, especially for college students? At its core, inflation refers to the increase in prices over time. In simpler terms the same $40 that used to cover a week’s groceries may only now buy you a few items.
Why does inflation happen? While there is not one simple cause, inflation can occur when demand for goods and services increases faster than its supply. Meaning when more people are trying to buy a limited product, the price of the product tends to increase. Another cause of inflation is when the cost to produce goods rises, such as factories paying higher wages or paying higher costs for raw materials, which causes the companies to then price the product higher to combat the rising costs. Global events, geopolitical conditions, supply chain changes, and economic policies can all play a role in the rise and fall of inflation as well.
Understanding inflation can be a new, intimidating, yet
very important concept for college students to
understand. From buying groceries for lunch, to paying
rent, or even tuition related costs, inflation affects nearly
everyday expenses of student life. When prices rise, but
income stays the same, it creates a financial burden on an
Average college student.
Right now in the United States, inflation is higher than what many households are comfortable with. Currently, inflation is sitting at a 3.3% annual rate, an increase from the 2.4% earlier in the year. One of the biggest impacts on inflation has been from gasoline. Increasing roughly from 30-40% since the escalation of conflict between the U.S and Iran and the disruption of key oil routes like the Strait of Hormuz in Iran. Changes in oil flows show up in everyday costs like transportation, energy bills, and even food prices. For college students, this means everyday expenses like driving to class, ordering in dinner, or grocery shopping weigh heavier on our wallets due to global events that feel far away.
So, how does a newly independent young adult handle this? Let’s go through some budgeting strategies and tips:
- Strategy: The 50/30/20 Rule (College Edition)
One of the most widely used budgeting frameworks is the 50/20/30 rule. It looks like this: 50% of your income goes toward needs (rent, groceries, transportation), 30% goes toward wants (going out, shopping, entertainment), and 20% goes toward savings. While this may work well for working professionals, it may not reflect the reality of college students. A smarter, and more realistic version for college students looks like this:
60% = Needs (rent, groceries, transportation, textbooks, basic essentials)
15% = Wants (going out, shopping, subscriptions, takeout)
25% = Savings (emergency fund, future expenses, financial cushion)
By allowing a larger portion to go towards needs, students will not feel the fear of not budgeting well enough when rent is due, or when they need to get groceries but they spent too much on a night out. At the same time, a fixed saving amount, even if it is small, helps build financial stability over time and protect us in emergency situations like an uber to the hospital or a last minute flight home.
Let’s practice this, if a student works an on campus job for $15 an hour, works 10 hours a week at the front desk. They have a monthly income of $600/month ($150/week). So in practice, the student has $360 for the essentials like groceries and textbooks, $90 for wants like shopping, takeout, a fun night with friends, and $150 goes into savings for emergency funds and building financial cushion.
Instead of wondering where your money went, this approach helps you decide where it should go before you even spend it.
- How to Stretch Your Money
Now that you understand how inflation affects your budget, the next step is adjusting everyday spending habits to work with it and not against it. Small decisions may seem annoying or not significant at the moment, but over time they can make a noticeable difference in how far your money goes.
One of the simplest changes is switching from name brand to store brands. With food prices rising due to inflation, the additional $1-3 saved from choosing store brand products over name brands with nearly identical quality can save a surprising amount of money without changing your lifestyle.
Another major adjustment is meal prepping instead of eating out regularly. Restaurant and take out places tend to rise faster due to impact on labor, energy, and delivery costs. When I started to live off campus, I would make a bigger dinner and save some for lunch the next day instead of spending $15 at Cox or Emory village everyday. Cooking in batches at home not only reduces spending but also helps avoid the constant temptation of expensive convenience food.
Another effective strategy is to buy in bulk, especially for non-perishable items like rice, pasta, canned goods, and toiletries. While the upfront cost may seem intimidating or make you second guess, the long term savings add up, which is especially important when prices tend to rise over time.
Lastly, take advantage of the student discounts, save money by simply being a student! Many services offer student pricing on goods and services such as Spotify, Apple products, Amazon Prime, public transportation, and entrance into Atlanta attractions. These discounts when added together can free up extra room in a tight monthly budget.
- Mastering the Grocery Store
As a junior living off campus for the first time, I was completely shocked at how fast groceries add up. It seemed like all my money wasn’t going towards textbooks, or fun nights with friends, but something much more mundane…groceries. That is why, I’ve decided to dedicate a whole section of this blog to budgeting groceries with inflation. Food prices have increased, income has stayed the same, but small habits can make a big difference.
A key habit is shopping with a list and sticking to it. It is surprisingly easy to fall into the trap of going grocery shopping without one. When that happens, you often end up grabbing multiple snacks you’re craving at the moment and forgetting essential ingredients. This leads to extra trips to the store, and the cycle continues, ultimately draining your pocket. Planning ahead helps you stay focused on essentials and avoid unnecessary spending. As a bonus tip, I always add one or two snacks for the week to keep my energy up when studying rather than just adding anything and everything to your shopping cart.
Another effective strategy is choosing frozen foods that last longer from time to time. I am not saying that every meal of the day should be a frozen meal. But when you’ve been studying till 9pm and don’t want to cook, try to have a yummy frozen meal instead of ordering in for double the price. Frozen meals also reduce the risk of food waste, which is another hidden cost in student budgeting. Personally, I suggest frozen meals from Trader Joes… best tasting meals for great prices!
Finally, where you shop matters. Stores like Trader Joes, Aldi, or buying bulk from Costco (if accessible) can save tons compared to stores like Whole Foods and Sproats. For example, a bottle of Extra Virgin Olive Oil at Aldi is $6.90 compared to Whole Foods’ price of $15.50. Similar to buying store-brand options, choosing budget friendly stores can significantly reduce monthly food expenses without requiring major lifestyle changes.
- Staying on Top of Your Budget
If you’re still struggling to make a budget, track it, and stick to it, no problem! It takes time and practice to master your finances. That’s where budgeting tools come in to help.
For those of us who prefer apps that do the hard work, tools like Mint, Monarch, YNAB for more can automatically track spending and categorize purchases. This makes it easier to see patterns, like how much is going toward food delivery or small daily purchases that add up quickly under inflation. Additionally, Cash Course is used by the Emory Financial Literacy group to help teach us about our finances.
If apps feel like too much, a basic Google Sheet tracker works just as well. This is a more hands on, manually approach allowing you to enter your expenses and gives a clearer sense of control and forces you to stay aware of your spending habits, even in small categories.
If you prefer more personalized support, you can make an appointment or stop by the Financial Literacy Advisors’ office hours, where we can help you build a budget tailored to your needs. You can also explore CashCourse, a helpful online tool that we use all the time that offers lessons and resources on managing money, budgeting, and building financial confidence as a student.
At the end of the day, college budgeting is about being aware and intentional with your money, especially when prices continue to rise. While inflation may feel out of your control, how you respond to it isn’t. By using budgeting strategies, adjusting everyday spending habits, and taking advantage of student resources, you can make your money stretch further and reduce stress over time. Building these habits now not only helps you survive college, but also sets you up with financial confidence long after graduation!
Works Cited
Fernando, Jason. “Inflation: What It Is and How to Control Inflation Rates.” Investopedia, 10 Apr.
2026, https://www.investopedia.com/terms/i/inflation.asp. Accessed 10 Apr. 2026.
“Store-Brand vs. Name-Brand Taste-Off.” Consumer Reports, Oct. 2012,
https://www.consumerreports.org/cro/magazine/2012/10/store-brand-vs-name-brand-taste-off/index.htm. Accessed 16 Apr. 2026.
United States Inflation Rate (CPI). Trading Economics, https://tradingeconomics.com/united-states/inflation-cpi. Accessed 10 Apr. 2026.