When I learned that you got paid to go to graduate school for chemistry, I was all in!!! I mean getting paid to get more education as opposed to going into debt to further one’s education seemed like a sweet deal. The only issue at the time was, I was working about 4 different jobs (one full time and 3 other part-time gigs) through and after undergrad which gave me a combined income around $47k per year. So, the practical planning of taking on graduate school for a stipend that would be half of that was daunting. And furthermore, at that time my priorities around materialism did not help me to stretch this new level of reduced budget. But in retrospect, there were some key things that I learned about managing my funds as a graduate student that I absolutely have to share with you.
The biggest thing about properly managing my funds then and that I realized much after I finished was my mindset around my graduate stipend. Going to graduate school was a good deal because I was going to get paid (albeit for education) and taking classes and doing research seemed a far better and physically less demanding job than tossing boxes at UPS (my third shift part-time gig). However, in all honesty having the opportunity to pursue higher education is a privilege and one that is not possible for everyone. And this we know because the number of individuals with PhD’s across the world is an extremely small percentage of the total population. That said, while I did receive funds for graduate school, they really were designed to help supplement my living costs so that I could have the freedom to focus solely on learning.
Having the right mindset around my financial support package seemed great in theory but in practice my stipend by far just didn’t support my reckless and materialistic spending habits. Shoes were my thing back then! And this is where I began to run into trouble, keeping the same spending habits as I had on a larger income meant that I had no funds by the 2nd week of each month after paying out necessary bills with a smaller paycheck. And then a cycle of being broke and living on little began. Now for some of you, you have financial support that may come from family, jobs, or other sources so this may not be an issue for you. But I tell you, it became real when I realized that my shoe habit was forcing me to make some grounding decisions about what to then buy from the grocery store: tuna, peanut butter & jelly, or ramen?
So, without drudging up all of those humbling memories let me share a few tips that you may consider to help make the most of your graduate school budget.
Tip #1: AVOID AT ALL COSTS STUDENT LOANS. SALLIE MAE DON’T PLAY AND WILL GLADLY ACCOMPANY YOU FOR THE REST OF YOUR PROFESSIONAL CAREER.
It took me more than a decade to pay off student loans that I incurred as a graduate student and it seemed like an impossible task to complete. It actually really was impossible until I got financially savvy and my husband and I worked intensely to eliminate this debt. My student loans from graduate school were not at all necessary. I started by saying earlier that I had a graduate stipend and even though it wasn’t as much as I would have wanted for a full-time job with a BS degree in chemistry, it certainly was more than enough to make it through six years in that phase of my life. The issue with taking the student loans was that they were easy to get and take on, they afforded me more flexibility in my budget each month, and quite frankly supported my spending habits and created new ones. I mean, I learned about Seven jeans and La Mer facial cream as a graduate student. And at the end of my time, the only thing I remember having to show for the ridiculous amount of loans I incurred was a new used car and all my heels. The amount of work, diligence, and mindfulness that it took to eventually pay those loans off, is something that I want as many of you to avoid if at all possible. I recognize everyone’s circumstances are different and these loans may be really necessary for you, and if that’s the case please up your financial savvy and know that you can get them paid off at some point in your professional career. But please exhaust other reasonable possibilities first.
TIP #2: CREATE A MONTHLY BUDGET AND STICK TO IT. Operating on feelings about money each month for the first couple of years got me into a lot of trouble. I felt like I had a good flow of money coming in and didn’t closely watch how it was going out. I definitely didn’t monitor where the money was going. And then I actually tracked my spending for a month and realized Starbucks was too close of a friend, especially for me given how much I didn’t even like coffee and only had a Venti caramel macchiato for the late-night boost that it offered. The other thing I realized was that all of the local restaurant establishments were being highly supported by myself and my friends. My 2nd to 4th year pictures from graduate school definitely show this and the money I spent on the average $15 Indian buffet for lunch (yes, I included the tip and had a Chai latte sometimes too) racked up quickly. Budgeting and making a plan for my money gave me the chance to eat out occasionally, buy a pair of shoes as a treat every now and then, but mostly gave me more security and less stress by wisely spending and saving my funds.
TIP # 3: MAKE REASONABLE ADJUSTMENTS FOR THE SHORT TERM TO SUPPORT LONGER-TERM GOALS. This tip is also known as consider things like getting a roommate, making meals at home to take to campus every day, living close to campus to walk, bike or take the bus, and only supporting one’s self or immediate family for this period. I liked my personal space in my apartment and the thought of having to cohabitate with someone else was a stress point. But when I considered that this was only temporary and that I could shave my rent in half, I began to recognize this as a viable option. Especially because in all honesty, I was never in my apartment anyway except to sleep take a shower and then head back to lab. There’s something in your budget or spending that you may be able to adjust temporarily to help give you more funds to better live now but then also to be in better position in the long term. After all, for your long-term goals you want to reap every benefit of your hard work now by being able to use your new career funds how you want and without reliving your graduate past with every new paycheck (I told ya’ll Sallie Mae don’t play).
This is a topic that I honestly think we don’t spend enough time on in graduate school. There’s more to unpack here but for now know that you can make some wise decisions that will allow you to be in good financial position for this chapter and as you transition to your next career phase. I’d love to hear how you have found ways to best manage your money during graduate school or what more you’d like to know about things to consider related to finances as a graduate student.
Until next time,
Renã AS Robinson, PhD
