Expert Tips for College Students To Budget Smarter—and Stretch Their Dollar Further

College students are a couple of months into the fall semester, and since they're officially "adulting" (18 and over is no longer considered a minor), it means they're also taking responsibility for their finances.

Student loans, basic living necessities like food, and "going out" expenses can add up and, suddenly, there may not be enough money to cover everything.

Realtor.com® spoke to financial experts to get their insights on how college students can survive the semester without going into the red.

"No one is saying this is simple. Students typically have little to no income, and budgeting for living expenses and any discretionary spending can be challenging enough without paying for student debt, too," Ben Waterman, CEO of Strabo, a global consumer wealth management platform, tells Realtor.com.

Waterman suggests starting off by listing fixed costs and then setting realistic limits for things like food, entertainment, and going out.

"Mentally, it can be useful here to treat savings or your student loan as a bill that you pay to yourself each month," says Waterman.

Melanie Musson, insurance and finance expert with Clearsurance, agrees.

"You need to create a budget, even when you’re in school. That way, you can plan how to use your money and prepare for things you need that you don’t have the money for, unless you take out a loan," Musson tells Realtor.com.

The experts broke down three main areas to budget for: student loans, housing and other fixed expenses, and a "going out" fund.

Student loans

Nearly 43 million individuals—1 in 6 adult Americans—have federal student loan debt, according to Congress.gov. The federal student loan portfolio now exceeds $1.6 trillion.

Chipping away at a student loan is never a bad idea, even if a student is still in school.

"You can indeed make payments on student loans while still in school, and this can be extraordinarily effective," says Waterman. "By stopping it from compounding, the total cost of your loan at graduation or later in life can be much, much lower. Even automatic payments of $25 to $50 a month is a manageable way of starting to build the habit."

A borrower does not have to start paying on a student loan while still in school—but if it's a possibility, paying any little bit will help.

"Unless you have a Federal Direct Subsidized Loan, you are responsible for all interest that accrues from the moment you take out your loan," Musson points out. "So, if you can pay back loans while you’re in school, it would be beneficial.

"With subsidized loans, the government pays your interest while you’re in school, so you may be better off saving and investing your money so you can make a big payment as soon as you’re required to start making payments."

Fixed expenses

The easiest task to do is to list any fixed expenses such as rent (if living off campus), utilities, and food. This is also helpful if roommates are involved.

"Sharing your home or bills with roommates is a great way of reducing expenses," says Waterman. "However, the key to making this work is clear, effective communication. Having a formal contract is probably overkill, but a written agreement on how rent, utilities, and shared items such as cleaning supplies will be split helps to avoid misunderstandings."

Musson sees the other side: "A contract is a great idea. It’s better to spell everything out so all parties understand their responsibilities. At the same time, when you live with other people, it’s important to contribute willingly and not keep score on every single thing. There’s a balance, and part of growing up is finding that balance."

Going out

College life is about the college scene—whether it's chill night with friends or an elbow-to-elbow campus party.

Expenses like going out to dinner or grabbing a drink, even seeing a movie, can be considered luxuries—if you're on a budget. Spend wisely and practice self-restraint.

"You need to create a budget, even when you’re in school. That way, you can plan how to use your money and prepare for things you need that you don’t have the money for," says Musson.

"If you limit going out, you’ll save a lot of money," she advises.

Watch your credit

Once someone turns 18, the credit card offers may start coming in. Credit cards are like a double-edged sword: They help to build your credit score, but if not used wisely, they could tremendously hurt it and cast a shadow when it comes to future financial investments, like buying a home.

"A missed payment not only incurs late fees but will also significantly hurt your credit score for an extended period of time," Peter Moore, senior account executive with Longview Strategies, tells Realtor.com. "Payment history accounts for 35% of your FICO score, making it the most critical factor."

Paying your bill off each month, if you can afford to, is a good way of building up your credit history, advises Waterman.

Ideally, you'd start with a student card with a low limit, he adds. But don't use your credit cards to pay for things you cannot afford.

"If you can afford things, consider using a credit card to build credit and earn points. It’s dangerous to start accruing debt when you’re young, as it means you'll begin your adult life trying to dig out of a hole."