We come from all sorts of financial backgrounds and budgeting experiences. This may be the first time you’ve started paying for rent, phone bills, and groceries; or you may have been financially independent for years. My department had a financial consultant present during the first week of September when we arrived, and that was a real eye opener to budgeting on this stipend. You have many things to keep you busy in grad school – stressing over your finances should not be one of them!
Have no fear! Graduate students at the University of Michigan have one of the best funding packages in the country – we just have to budget accordingly. Saving money will become habit after a little bit of effort and practice. We all can do it, and so can you.
Before you arrive in Ann Arbor, think about what is important to you to have a comfortable and happy life here. Do you prioritize having a really nice space to come home to? Do you prefer going out to eat on a weekly basis? Want to save money to travel each summer? I chose to have a really nice single bedroom apartment during my first year in Ann Arbor. After, I realized I prefer having company and will be living with roommates in my second year. Things can change (and now I am saving money by living with roommates)!
Go over your contract from the University of Michigan and figure out what you can afford on rent. This is the biggest expense, and you’ll want to subtract it from your stipend to see how much it cuts into your pay. Then, figure out what other monthly and unchanging expenses you will have, such as cell phone bills, and subtract that too. With the remaining amount, you can divide by the weeks in the month so you know your weekly budget for food and other things.
Once you are in Ann Arbor, keep every receipt and write out what you spend your money on for the month. Sort it by categories (e.g., food, rent, personal, etc.) At the end of the month, subtract this amount from your stipend. Did you go over your budget? Did you save? Tracking what you spend gives you an idea of where your money is going. Beware of little expenses; a small leak will sink a great ship.
Save as much as you can to have your money float over into the next month, because there are always unexpected expenses, gaps in payment dates, and substantial decreases in pay over the summer. You can apply for Rackham Emergency Funds and departmental funding for some emergencies (e.g., flying out to a family funeral, laptop repair). Monthly spending will fluctuate: in September you may be working so much that you don’t spend anything, and let’s not forget December when buy presents for all our loved ones (who are hoping for University of Michigan apparel). A budget is telling your money where to go, instead of wondering where it went.
Written by Kristi Chin
International Center Summer Orientation Peer Adviser
Country of Origin: Canada
Ph.D. student in Psychology 
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