Week 7 - Budgeting in Vet School

Vet school is demanding. You're juggling classes, clinics, and your own wellness. The last thing you need is a money crisis on top of that. Learning to budget now, while you're in school, can save you a ton of stress, and cash, down the road. It might not sound as exciting as learning surgery or acing pharmacology, but getting a handle on your finances is crucial for your future. In fact, most vet students graduate with a six-figure debt. Budgeting can help keep those loans in check. This guide will walk you through the basics of budgeting as a vet student in a fun, practical way. Let's set you up for financial success, so future you will thank present you.

Why Budgeting Matters, Even in Vet School

Developing healthy financial habits now will help you achieve your professional and personal goals later. Now is the perfect time to start building those habits. Think about it: once you're a working vet, you'll have even more financial responsibilities (loan repayments, clinic costs, life stuff like homes or families). If you learn to manage money now, you'll be ahead of the game later on.

Most veterinary students ignore their personal finances. They take out loans without much thought, spend whatever they feel like they need, and figure they’d deal with it "later." Spoiler alert: "Later" sneaks up on them faster than you think. Upon graduation, they are confronted with a mountain of debt and zero budgeting experience. The repercussions of spending and borrowing hit hard after graduation. They have to learn budgeting the hard way, and it’s not fun. Start paying attention to every dollar while you're still in school. It’s hard work to stick to a budget, but it’s absolutely worth it. One day, you'll look back and be so glad you did.

Budgeting Basics: Track Every Dollar

So, what exactly is a budget? In plain terms, a budget is just a plan for your money. You list out all the money coming in and all the money going out, and make sure the first number is bigger than the second. In other words, if you total up your income and expenses for the month, you want to end with either a surplus or at least break even, with maybe a small cushion going into savings. Every budget boils down to two main categories: money coming in vs. money going out. You can break those down further into sub-categories. For example, "income" might include part-time job, loans, gifts; "expenses" might include rent, food, books, pet care, etc., and can be as detailed or as broad as you need.

The key to budgeting is simple: know where every dollar goes. That means keeping track of your money on a regular basis. It’s like how you track a patient’s health stats over time, you want to track your finances so there are no surprises. Some people choose to start budgeting by listing all their expenses first to see how much they need, and others start with their income to see how much they've got to work with. Ultimately, you need to make sure your expenses don’t exceed your income. In this guide, we’ll start with figuring out your income, since as a student your income is usually fixed or limited. Once you know that, you can plan your spending around it.

Starting Your Budget: Figuring Out Your Income

Creating a budget doesn't have to be a marathon session. We can break it into small, manageable steps. Remember, budgeting in real life is an ongoing process: you make a plan and then compare it with what actually happens. The concept is easy, but most people never actually do it. Here’s a not-so-secret secret: financially successful people do the work. They prepare a budget and stick to it. Their effort pays off in real results. You can do the same, and we'll start right now with a simple step: figuring out how much money you have coming in.

Income is anything and everything that brings money into your pocket or bank account. For vet students, income isn't just paychecks; it can include student loans, scholarships, grants, parental or spousal support, gifts, and even savings you've set aside. Essentially, this is the pile of money you have available to spend for the semester or year. Your total income sets the absolute maximum you can afford to spend. If you spend more than you have, you'll be sliding into debt, and we want to avoid adding more debt while in school as much as possible!

Let's break down the common income sources for vet students and how to handle them:

1. Student Loans: For many veterinary students, loans are the biggest source of income for school and living expenses. Start by determining how much loan money you plan to take out this year. Is it the full student budget that your school allows, or can you manage with less? Include all education loans in this tally. Pro Tip: Don't treat your loan disbursement like a sudden windfall to splurge on. Some former vet students financed vet school this way: when loan money comes in, they stash it in a savings account immediately. Then pay themselves a fixed amount each week by automatic transfer into checking – essentially giving themselves an allowance. This keeps their spending on track. If they find their checking account running low before the next weekly transfer, that was a red flag that they were overspending. In the end, this tactic helps to avoid taking the full loan amount offered, saving money, and interest in the long run. You can try a similar approach to make your loan last and maybe even borrow less than the max.

2. Part-Time Work: Do you have a job while in vet school? Many students assume they can’t work during the semester ,and indeed, your first priority is academics. But even a small, part-time job can help cover some expenses if you can balance it with school. Take a look at your paycheck and note your after-tax income. Be realistic about how many hours you can continue working when exams and clinic duties ramp up. If it's manageable, count that income in your budget! 

3. Scholarships, Family Support, and Savings: Maybe you have some scholarship funds, grants, or a supportive family member/spouse helping you out financially. Or perhaps you saved up money from a summer job to use during the school year. That’s awesome, be sure to include those amounts in your income plan. However, you should treat these funds carefully. If you receive a lump sum at the start of the semester, it can be tempting to feel rich. But remember, that money might need to last until winter break or even next summer. One smart way to manage a lump sum is the same trick we mentioned earlier: put it in savings and dole it out to yourself monthly or weekly. This prevents blowing it all in the first two months. Essentially, turn big chunks into a steady "paycheck" for yourself.

A word of caution: Be mindful of where support money comes from. Always do your homework before taking outside loans or alternative financing! If you're considering something unconventional, talk to a financial aid advisor or a vet school financial counselor.  Make sure you understand the long-term implications, so you don’t accidentally trade one kind of financial stress for another.

Now you’ve identified all your income sources, add it all up. This total is the amount of money you expect to have for the school year, or semester. The next challenge is making sure it lasts as long as you need it to.

Do the math and plan it out: figure out how many months that money must cover. Will you get another loan disbursement or scholarship in January? Will you work over the summer to replenish funds? Determine the time frame

. Then, take your total income and split it up over that period. For example, if you have $10,000 to last from August to May, that means you can spend about $1,000 per month on average. In fact, you can break it down further: $1,000 per month is roughly $250 per week. Knowing this number is powerful, it’s your financial pace plan.

To put it into practice, you might decide to pay yourself weekly, as mentioned earlier. Say you have that $10,000 in a savings account; you could set an automatic transfer of $250 every week into your checking. That $250 is your spending money for the week. If by day four of the week you only have $20 left, you'll instantly know you need to relax on spending until it resets with next week's transfer. And if you consistently find $250 isn’t covering your basic needs, that’s a sign you either need to cut some expenses or find additional income. This method creates accountability. It’s much easier to know you're on track, or not, when you have a clear weekly limit, rather than glancing at a big lump sum and hoping it lasts.

Action Steps: To summarize, here’s how to start your student budget on the income side:

• Calculate your total income for the period. List all sources (loans, job earnings, scholarships, family contributions, savings, etc.) and sum them up for the semester or year.

• Determine the time frame that money needs to cover. How many weeks or months until you get more income (through the next loan disbursement, break, or graduation)?

• Compute your weekly or monthly allowance. Divide your total income by the number of weeks or months it has to last. The result is a target spending limit for each period. (For example, total income ÷ 12 months = monthly budget; then monthly ÷ 4 ≈ weekly budget.)

• Set up a system to stick to it. Consider moving your funds into a separate account and paying yourself week by week or month by month. Use calendar reminders or automatic transfers so you don't forget. This creates a controlled flow of money that aligns with your budget plan.

By following these steps, you'll get a clear picture of what you can safely spend and when. It might feel a bit restrictive at first, but it's actually freeing. You won't have to constantly worry if you'll have enough money next month, because you'll know exactly where you stand.

Plan Now, Thank Yourself Later

Building a budget is one of the most important things you can do for your future self. Yes, it takes a bit of effort and discipline, but the payoff is huge. When finals roll around and you're buried in work, you won't also be panicking about an empty bank account, because you'll have a plan. When you graduate and look at your loan balance, you'll know you did everything possible to keep it in check during school.

Remember, there’s no magic to financial success. The “secret” is simply doing the work that most people avoid. By creating and following a budget, you’re already ahead of many of your peers. You’re treating your personal finances with the importance they deserve. This habit will carry over into your veterinary career, where you'll have to manage salaries, business costs, or personal expenses like a mortgage or practice loan.

Finally, give yourself credit for taking this seriously now. Budgeting might never become your favorite hobby, but over time you might even start to enjoy seeing your progress, kind of like watching a patient recover after treatment, small improvements add up! Stick with it, and know that you’re building a skill that will serve you for a lifetime.