Hey all,
Just wondering how everyone set a housing budget for their student. Our D23 is a sophomore and lives on campus with a meal plan. Next year though she’ll have the option to move into an apartment. We are paying for her housing costs and plan to until she graduates. She is responsible for her own spending money for fun etc.
So did you set a strict monthly or semester budget for rent and groceries? Give them what you’re willing to spend at the beginning of the year and let them figure it out?
What’s a good amount for food? We’re not planning on supplementing doordash or eating out, that’s on her, but would like to give her an amount for groceries.
Anyway, would love to know how everyone approaches this. Thanks!
I think it’s important to figure out what you mean by groceries. Are you talking food only? Personal toiletries? Cleaning supplies? Also, how good a cook is your daughter currently? Will there be a run for kitchen supply set up (dishware, cookware, flatware, spices, etc)?
I’d have a much different budget for food only, versus food/toiletries/cleaning supplies.
Somewhere between $200-$300/month depending on how much she cooks from scratch, and how much meat/dairy she consumes would probably be where I would land (food only).
I have found it depends on your kid, their skill in the kitchen and in the grocery store, what’s available locally in terms of shopping options, public transportation, etc.
I know kids who are able to cook healthy and economical meals and kids who live on junk supplemented by delivery sushi. There are kids who are eager to use what is likely a small kitchen and limited equipment, and kids who throw in the towel because they “need” a professional level 6 burner gas stove and convection oven to make a pot of chili.
You know your kid and presumably, your kid knows what other students do in terms of grocery shopping, getting a zipcar once a month to share a trip to Costco, etc. I’d wait to set a budget until you and your student have had a granular discussion about meal planning and shopping.
And even though all the delivery services include non-food items (I don’t count aluminum foil or sponges) it will help if your D creates a separate budget for shampoo and whatnot even if they all get delivered in the same order. One bottle of whatever the top influencers are using is equal to a week’s worth of breakfasts…
Seems like it depends on how careful with personal finance the student is. If you just give them the year’s worth of money at the beginning, some students will end up with much of it left over at the end of the year, while others will run out during the first semester. But you probably know your student better than anyone else here.
But also note whether the off-campus housing and food cost is expected to be significantly different from that of on-campus housing and food.
My son is off campus this year and we send him a monthly amount for rent and food. We based food on what we were saving on our groceries with him not being home. It was a bit light, so we bumped it up. He’s a big eater, but also a good cook so mostly makes things from scratch.
Ugh I just wrote a long response and my wifi crapped out. I’ll try again
Thanks for your post. She’s not a terrible cook but also not a great one. I am a good cook (if I do say so) and would like her to cook more.
For toiletries and cleaning supplies, we’ve been taking a big trip to Target at the beginning of the year and that seems to last her a long time and then she pays for whatever needs replacing.
For food I was thinking $200 a month and then maybe $300 a semester on her college swipe card that she could use to buy lunches on days she’s on campus.
Sure, I’m just wondering what other people do. She’s not great with handling money and I don’t think we would give her enough for the entire year but I am thinking about maybe rent for a whole semester at time. I want her to learn to be better about budgeting now rather than in a few years.
Would giving the money monthly be a closer approximation to pay check frequency that she is likely to encounter after graduation and working in a post-graduation job?
You’re absolutely right about that and it isn’t something I thought about. Maybe I should give it to her every two weeks which would probably be the most accurate!
Location Dependent. My son could live cheaper off campus in Tuscaloosa. My daughter spends double in Charleston what the school charges.
Housing is location specific.
Food also depends. Ours has always had a meal plan for when she can’t cook. My son cooked 100%. She shops but spends on Ubers to shop. Others may have something close, walkableetc.
There’s many variables here.
We did not budget so maybe that’s the difference. We are more about - it is what it is.
It does look like semi-monthly (twice per month) is the most common minimum paycheck frequency across states (though some states have different minimum paycheck frequency for different job situations). See State Payday Requirements | U.S. Department of Labor . Note that bi-weekly (every two weeks) is slightly more frequent than semi-monthly, although it is probably close enough that either would give practice budgeting on a typical payroll schedule.
I think there’s a difference between a kid who isn’t good with money because grandma sends $100 for her birthday and it’s gone within an hour, vs. a kid who has poor financial literacy and bad habits.
Food is tricky IMHO if that’s going to be the vehicle for teaching a kid with poor financial literacy and bad habits how to manage money. You don’t want her hungry. You don’t want her living on ramen noodles and dating creepy guys who will buy her dinner at a place that serves protein. And you don’t want her to be the annoying neighbor who is always dropping by to eat “just a snack” but never reciprocates.
So maybe figure out what your concerns are before you sit down for a discussion? People who are acceptable cooks can become fantastic cooks in a matter of months. People who buy lots of perishables and then throw them out because they spoil before they get eaten can learn solid shopping and menu planning techniques. But don’t throw her in the deep end if you don’t have to (i.e. you could afford to help her out occasionally if she runs short).
Oh of course. She knows we’re her safety net. She also has more than 10k saved so she’d always have something to pull from.
You’re thinking 10k? How is she bad with money?! We gave her an allowance in high school and she spent that while saving her paycheck. It was a deal we made with her so she would have a nest egg.
She’s not great with money in that she spends her school swipe card money like it’s water, mostly on coffee (she’s out for this term, it’s $400) despite having a full meal plan. And she’s not aware that daily $10 coffee runs and endless uber eats are not financially savvy choices. She sets a spending budget for herself every month and breaks it every month.
Next time she’s home, how about a trip to Costco-- she can choose one of their elegant gourmet coffee beans, grind them herself in the grinder at the front of the store (they are very cool) and then brew herself a pot of coffee when you get home. Voila!!! She can drink MUCH better coffee at a MUCH lower price and “save” her money for better produce, really fresh fish, or whatever her favorite meal is.
We give our kids the cash equivalent of the school meal plan when they moved off campus. We divide it up by semester and they need to budget. They can use for groceries, buying swipes, dining out - we don’t care - but the amount is the amount and anymore needed would be out of their own pocket - one payment in Sept and one in Jan.
They also get a monthly allowance for other needs - ie: drug store, haircuts, transportation and this is deposited in their account on the 1st of each month.
Monthly rent is paid directly out of our bank account and the budget for an off campus apartment must match or be less vs the on campus dorm or they pay the difference. We had to co-sign/guarantee, so all set up to automatically come out of our account.
We loosely set it at $50 a week in Atlanta and $55 a week in Memphis (there are huge 10% taxes on food there).
I do not strictly check. We put all kids groceries on one credit card (in our case it is Amex that gives 3%back). Both girls generally stay in budget. One has car so she has a bit more flexibility to drive for food. She knows that Aldi is cheapest with fine enough quality and some organic.
I do not know do you have taxes for food or not there. Do not forget to factor it.
But both kids mentioned above also have “safety net”. One without car gets full freezer of her favorite food from Costco and Trader Joes (parents run like $200 total.) The other with a car has one meal a day on campus (mandatory by school). So nobody gets hungry.
If she likes shakes get her smoothie maker. No brainer breakfast or snack - frozen fruits, banana, milk and yogurt. My youngest is feeding all her friends.
Also my oldest sometimes too tired to warm frozen food or low on energy. For her we also order vitamin or protein drinks like Orgain. If your daughter likes something like that it can be an emergency drink. Can order on Amazon
