Budgeting Your Refund

Receiving a large chunk of refund money can be daunting. If you are not used to budgeting out your refund, you may accidentally spend it all on fun things, leaving you with no money to cover your essentials. Your refund is meant to only cover school-related expenses. This includes textbooks, school supplies, housing, and in some cases, food and transportation. If you are afraid you’ll spend your refund unwisely, or if you just don't know what to do with such a large amount of money, here are some ideas. 

• Pay your rent ahead of time

If you live off-campus, you can pay your rent in advance. Use your refund and pay the next few months ahead. You won’t have to worry about rent every month, and you know your refund money was used wisely. 

• Stick it into your savings account

If it’s not in your checking account, you can’t go on a shopping spree with it. Keeping it separate from your checking account will help trick your brain into thinking of that money as emergency money. When you need to use it, it is easy enough to transfer the money back to your checking account.

• Buy any textbooks and school supplies you need for the quarter before you shop for fun

This may seem like a silly tip, but telling yourself you will have enough left over for your books after you buy yourself a nice dinner and some clothes is a sure way to accidentally overspend. Instead, buy your books, pens, paper, and other supplies as soon as you get your refund.