Economics Education Month: Practical Spending for Students
By: Christopher Gamboa
Economic Education Awareness Month is celebrated every October, helping students and newcomers to financial literacy understand everyday economic decisions. Topics covering the macroeconomics helps prepare individuals into economic prosperity, while equipping the tools to learn the economic systems at a society level. The purpose is to prepare students and newcomers for better financial independence and promote responsible habits. Not only knowledge in economics helps students financially, but it also encourages more civic engagement, especially in public policy.
This month is about understanding macroeconomics, thereby encouraging better micro decisions like, tracking your personal inflation, picking the best next move when time and money are tight, and building a steady budget.
KEY TAKEAWAYS
Watch the big two: Track housing and tuition, they drive your budget and your personal inflation.
Lower the hit: Use substitutes (library/online textbooks, utilities-included housing) to blunt rising costs.
Choose smart: Let opportunity cost guide you, protect aid/grades first, then cut recurring costs, then take shifts.
Aim your next $10: Keep a simple budget (e.g., 50/30/20.
Personal Inflation 101
Inflation is the average rise in prices over a period of time. For an average college student, housing prices and tuition are the most impactful expenses. Understanding how the two big baskets move alongside inflation impacts everyday expenses, like food and transportation.
Understanding the spike in prices in housing and tuition helps students forecast future expenses, thereby making budgeting easier and more accurate. Choosing cheaper alternatives that are less sensitive to inflation will save a lot of money in the long run. For example, textbooks (should be accounted for with tuition) can easily be swapped for free versions online or in the library.
This matters for students because since their budget is concentrated on housing and tuition, their personal inflation is usually higher than the national average. More expenses eat up more time, since more work shifts needs to be done to cover the increase in prices. Being proactive on budgeting according to inflation relieves future debt and protects finances that can be used towards more educational resources.
When every dollar and hour matters more, how do you decide between an extra shift, office hours, or sleep tonight?
Make the Choice That Lowers Pressure
Every "yes" is also a "no." Opportunity cost is the best thing you give up when you choose something. If costs (rent/tuition) are rising, getting this choice right matters even more.
As prices rise, the everyday decision between money, grades, and sleep is more critical. Understanding the tradeoffs and expected value of your decisions brings more balance with school and personal finances. Students essentially need to change their "next best move" according to the inflation gap to cover. For example, the inflation gap could be a $150 increase from last month.
Opportunity cost means asking: Which choice lowers my pressure the most now and later? If the quiz affects your scholarship, choose office hours first (that protects future money). If you can erase a textbook or utility bill tonight, do that next (it keeps saving every month). Then pick up a small, well-timed shift that doesn't steal sleep before class. Same 3–4 hours, very different outcomes, because you chose the option that actually shrinks the $150 problem instead of chasing it again next month.
Micro Moves That Beat Macro Prices
To stay on top of macro externalities (e.g. housing, tuition, and opportunity costs), developing a purposeful budget sheet every month to plan out the smaller expenses. The more planned out the budget, the less volatile and more flexible you are to price changes.
Excluding tuition expenses, a 50/30/20 split is a popular guideline for students that should be adjusted to each individual student's personal situation
50% Needs: rent, utilities, groceries, transit, medication
30% Wants: dining, fun, subscriptions, travel
20% Savings: tuition loans, emergency, future payments
Having a solid split safeguards negative tradeoff between studying/sleep and additional money needed to cover price changes. That is how micro choices can ease the financial burden of macro headwinds.
Resources
EconLowdown (St. Louis Fed) — short videos and modules that explain inflation, CPI, and everyday decision-making.
BLS CPI Inflation Calculator — quickly see how prices changed over time to estimate your personal inflation.
Federal Student Aid — everything on FAFSA, grants, work-study, and loan basics in one place.
NGPF Budget Templates — free, plug-and-play spreadsheets to set up a student budget and cap spending leaks.
OpenStax — no-cost, peer-reviewed textbooks (including intro econ) to cut your textbook bill to $0.