#SoYF (Smile on Your Face) events are designed to be 5-minute wellness breaks where you participate in something identified in U-M's 8 Dimensions of Well-Being. ResNavs are collaborating with the Office of Financial Aid and U-M Credit Union to bring you this February (2025) well-being break based on financial wellness & planning. We'll also share some lessons learned along the way.
As always, ResNavs recommend students seek professional advice from the Office of Financial Aid and other student service centers on campus.
If you are experiencing financial distress or an emergency in funding, please contact the Dean of Students Office who can assist you in triage relief.
Kathryn | Making major budgetary changes in the last 12 months
There have been some major changes in my life within the last 12 months. I transitioned to a whole new college, some of my family relationships altered, and I became completely independent. I had no car starting the F24 term, which wasn’t going to work because I had a job off campus, meaning I also became isolated in the unfamiliar Ann Arbor area. I had to do vehicle hunting and learn first-hand what goes into owning a car (and the associated expenses that go with it). I had never lived anywhere but my childhood home and, now, I was moving into a house with four other strangers: paying rent each month. The expense of my education and everything included became solely my responsibility. Additionally, my cats moved with me at the beginning of the W25 term.
I had to learn a lot of “adulting” norms by myself. However, I did receive a lot of guidance, whether from close family members or other external resources, so I did not go into things utterly unaware. The recommendations I’m providing are things I learned in a not too difficult fashion.
Budgeting became my best friend and especially being a University of Michigan student I had to assess what things had the least opportunity cost on my time. Another big consideration was finding alternatives to items that were necessities, as well as better ways of obtaining them while saving more.
I am bubble tea and sushi obsessive, but I can't spend $7 (minimum) on drinks once or twice a week in my current economy. Now, I buy boba and tea in bulk and I am set for months, along with ingredients to make simple poke bowls at home. This not only saves money in the long run, but also forces breaks in between studying to do something for myself. To aid in the management of my money, I found it useful to designate a bank account for spending and only give myself a small pool of money out of my savings so I don't even see that number when I want to spend money.
To address budgeting, I have utilized Excel; it has some nice, personal monthly planners with categories where you can input how much you spend in a specific outlet each month and observe where you need to reduce. I say reduce because I don’t think “cutting out” is practical or realistic. I am not letting go of my adornment for sushi, but I can reduce how often I buy it so I am still satisfying a craving but giving myself limits/expectations.
If there are any major takeaways from what I have learned, it is that everything strives for balance. It’s important to be able to have a tangible list of goals in order to provide a motivator to save, but I don’t think it’s necessary nor reasonable to eliminate everything that gives you peace and comfort, even if it seems extraneous.
Nicole | Trying an app
I started using a budgeting app, YNAB [You Need A Budget]*, after taking a financial literacy class tailored for seniors my last semester of undergrad. The app breaks your budget down into categories, like groceries, entertainment, savings and more. It has helped me to visualize exactly how much I’m spending and where I can cut back if I need to do so. It’s also been super helpful for setting financial goals, especially being in graduate school and needing to set out specific amounts for my education. Having a clear picture of your financial situation without the added stress has made me feel more in control and less stressed about budgeting and money. I’ve also learned that if I plan for the future through the app by setting up transfers, etc., I feel like I am building toward something--giving myself peace of mind for whatever life might throw my way!
*Please note this is a paid app, with a 34 day trial period (as of this printing).
Editor’s Note: Now is a good time to share the undergrad classes being offered by the Office of Financial Aid, starting Sp25 term:
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ALA115 Financially Savvy Student (F/W, 1 credit, pass/fail)
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ALA 215 Financially Savvy for the Future (Sp, 2 credits, graded)
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ALA 270 Financially Savvy from the Start (F, 1 credit, graded) - offered by OFA
Pearl | Using your bank's built-in budgeting tool
I’ve always struggled with managing my finances, but over time, I’ve gotten much better — now I actually have savings from my two part-time jobs! A couple of years ago, I wasn’t tracking my spending properly and ended up short on rent. That was a wake-up call. Since then, I’ve started tracking my expenses closely and setting a monthly budget with different spending categories.
One thing that’s helped me a lot is using my bank’s built-in budgeting tools. I set spending limits for different categories, like dining, shopping, and entertainment. Since I know food is my biggest expense, I allocate the most to that, while keeping my shopping budget low — except when I travel. Personally, I’ve found that only allowing myself to shop while traveling makes it feel more intentional and rewarding. Using Excel is another great tool for tracking spending. I start by listing out my mandatory expenses — rent, utilities, insurance, and phone — so I know exactly how much I need to cover each month. Then, I leave room for groceries, dining, and miscellaneous expenses. Having everything laid out helps me see where my money is going and adjust my spending if needed.
Another habit that’s helped me is managing my checking account differently. I used to put in just enough to cover my expenses, but I constantly had to transfer more money throughout the month — those transfers really added up. Now, I put in extra upfront, so I’m not scrambling at the last minute. It keeps me from overspending out of my savings.
Pranavi | Following the 50/30/20 Rule
When I first started at U-M, I was pretty clueless about managing money. I thought I could just wing it, but that led to some stressful moments, especially when unexpected expenses popped up. After a few too many ramen dinners, I realized I needed a plan.
One of the best pieces of advice I got was to follow the 50/30/20 Rule*: 50% of your income for needs, 30% for wants, and 20% for savings or debt repayment. It’s a simple framework that makes budgeting less overwhelming. I’m still working on sticking to it perfectly, but it’s a great guideline.
Another tip that’s helped me is to always have an emergency fund. Even if it’s just a small amount, having a cushion for unexpected expenses can save you from a lot of stress. I started by setting aside a little bit each month, and it’s been a lifesaver more than once.
I also learned the value of meal prepping. Not only does it save money, but it saves time and helps me eat healthier. I usually plan my meals for the week on Sundays and do all my grocery shopping in one trip. It’s amazing how much you can save by cooking at home instead of eating out.
Also, don’t underestimate the power of a side hustle. Whether it’s tutoring or a part-time job, those extra dollars can add up and ease the financial burden.
Managing finances is a learning process and it’s okay to make mistakes. What’s important is that you learn from them and keep moving forward. Reach out to friends, family, or financial advisors if you need help. Stay financially savvy and Go Blue!
*Citing Investopedia, but there are other equally good versions.
Rocco | Balancing summer savings and on-campus employment
I’ve learned a ton and utilized many techniques regarding finances since beginning college. Before U-M, I was able to save up a fair bit of money because of a summer job. After arriving, it was time to learn how to budget my savings. One resource I used was NerdWallet, which taught me the basics of writing down a budget and keeping track of my expenditures. I limited my going out (especially to places like restaurants, which can really suck up your money), and I was able to make my savings last throughout the year.
After freshman year, things got real. Going into sophomore year, I got a house to live in, so I needed to prepare to find money to pay for rent. Rent isn’t cheap in Ann Arbor, as most people know. I also had a bit of savings from the summer, but I knew it wasn’t going to be enough. I decided I needed to get a job, so I looked into jobs.studentlife.umich.edu and was able to find this job as a Resource Navigator. After having one job for a bit, I got another one through the same office - Campus Information Centers - as an Information Assistant. With two jobs at the university, combined with budgeting skills that I learned during my freshman year, I have been able to consistently afford rent here, which is an accomplishment that I am proud of.
There are so many important things that we do during college. For me, I think that learning how to budget and manage money independently will prove to be one of the more invaluable skills.
Ronen | Paying now, while planning for the future
When you grow up having financial security, it can be very hard to be thrown out into the world without having a plan. When you start to have financial responsibilities on a regular basis it can become very difficult to stay afloat financially, especially while taking on high tuition at the University of Michigan. I, myself, am taking on a lot of student loans to come to this University, which adds additional bills and stress to my financial situation.
One thing that I had to find out the hard way with my own financial budgeting is that there are always trade offs. When budgeting for your four-year plan (with student loans), present (groceries and rent), and your future (savings) there are a lot of things you have to consider. The first thing is always the lifestyle you want to live. It is very difficult to live a more lavish lifestyle when you have a lot of bills and also want to save for your future. Something I recommend is to create a priorities list.
I prioritize saving for my future, paying off my loans and groceries, while also trying to set some money aside each month as spending money. After setting aside my loan payments each month and budgeting for my groceries and rent, I attempt to save 15-25% of every paycheck and invest it or put it in a high yield savings account (something I recommend to maximize financial success). Once all my expenses and savings are handled, I put some towards spending money. This usually comes to about 10-20% of my after tax income. Working backward in this manner allows me to be financially responsible and also have money to enjoy.
One last thing: if you are a student or young adult and interested in preparing yourself for your future, you should look at a Roth IRA as soon as you have funds that you can put toward it. The younger you are, the more earning potential you have. Also, once you surpass a certain income threshold you can no longer contribute to your Roth and lose the opportunity to help grow your retirement account.