Key takeaways

• A college student spends over $400 a month on off-campus food, on average

• Companies are adjusting rewards and locations to appeal to Gen Z students

• Social media has brought new meaning to outfitting a dorm room, including luxury designs

Spending for the college years can be a chance for students to test their financial smarts.

Nearly two in five American 18- to 24-year-olds (39%) are enrolled in either college or graduate school, and over 15 million undergraduate students attended college in spring 2025.^1,2 As college students take on new educational and life changes, it’s important to keep a strong foundation of financial education.

Communication skills developed in the classroom can also translate to money talks: Empower research found that Gen Z is most likely to say budget conversations are the most stressful (43%) financial discussion to have as a family.

The younger generation has been making financial progress. As of July, Gen Zers have an average net worth of $89,659, according to Empower Personal Dashboard^TM data. They’re also planning for retirement, with an average 401(k) balance of $83,371.

As students transition into a new year, they’re being ushered into a space full of spending opportunities and companies ready to match their habits.

How college students are spending

Tuition may be the first thing that comes to mind when thinking about college spending, and it’s for good reason. The big-ticket expense can range from around $30,000 for state schools to as high as $95,000 at a private university annually.

But other necessary expenses are adding up: 45% of Gen Z say they’re spending more on back-to-school season than last year, with an average amount of $276, according to Empower research.

What’s going into those back-to-school online and campus shopping carts is dominated by two big categories: school supplies like notebooks and backpacks (42%), and clothing and shoes (41%).

What’s considered necessary and essential for a college student is also seeing a shift. Fear of missing out can play a bigger role for students fulfilling their school needs and perhaps also dorm or apartment needs.

Online influencers frequently curate ideas on décor and small-space organizing products, collecting varying amounts of affiliate revenue from eligible transactions, and interior designers have also offered planning services.³ Influencer marketing has grown into a $21.1 billion industry as of 2023. Social media has enabled the spread of luxury dorm decorating, where people could spend upwards of $10,000 in custom designs and furnishings.⁴

It’s up to students to balance splurges and expectations: Empower findings show that over half of people (57%) have made a financial decision after seeing others' lifestyles online.

Companies flex for college students’ attention

Additional everyday spending gets added to the mix outside of the classroom and dorm room. College students pay an average of $410 a month to eat off-campus.⁵

The college experience is not going unnoticed by fast-casual chain Chipotle. The company wants to stay in students’ wallets and homes, with a new rewards program for college students (requiring verification) that links a points system to their restaurant spending. In tandem, it’s paired up with Urban Outfitters to offer food-inspired furnishings like a $59 desk lamp in the shape of a Chipotle bag of tortilla chips.⁶

Bath & Body Works is bringing its scents straight to students, setting up shop with more than 600 new college campus locations opening in the fall.

Read more: Shopping with all senses: How brands build sales beyond looks

Hotels are looking for family visits, college tours, and university sports to help ramp up occupancy. Beyond providing rooms to stay in during busy times, the Graduate hotel chain’s 35 properties are decorated with each nearby school’s vibes in mind and have a restaurant to gather in — all within walking distance of the college. Hilton Hotels and Resorts doubled down on this strategy, acquiring the chain in 2024 for $210 million.⁷

Financial tips for college students (and their families)

Three in 10 adults have received financial assistance from their parents after the age of 18, according to an Empower study. So for some students, when they spend money, a wider family can be affected.

Invest toward educational expenses

As of mid-2025, Americans had around $500 billion in 529 education savings plans, which can be a tax-advantaged way to allocate spending during the college years. Contributions can be made by parents or set up to receive monetary gifts from friends and family. The earnings can compound and grow and potentially be withdrawn tax-free toward eligible expenses.

If a family already has a 529 account, having a college student assigned as the beneficiary can allow those funds to go toward education expenses like tuition, room and board, computers, and even some student loans. In turn, more of the typical budget can be redirected for everyday lifestyle spending like clothes and groceries.

Read more: What can 529 funds be used for? Get a Sense Check

Maximize student discounts

Student discounts aren’t limited to movie-theater tickets; the perks can save on both educational essentials and ongoing needs. It’s worth asking at both small businesses and bigger retailers about potential rewards, and often people can track them down online.

The free Unidays platform allows students to browse exclusive discounts to use online and in-store for brands including food delivery, warehouse clubs, and tech products. The app has reached more than 29 million people, and verification of being a student unlocks a year of access.⁸

Some major retailers offer storefronts tailored for students, like Apple’s Education Store that blends product offerings (laptops, smartwatches, tablets) with services (streaming and music perks).⁹ Through September 13, Target has a 50% discount for its Target 360 delivery service for verified college students, which is regularly $99 a year.¹⁰

Amazon Prime for Young Adults is open to 18- to 24-year-olds and offers the chance to earn 5% cash back on eligible purchases in certain categories, such as beauty and electronics purchases.¹¹

Keep credit in mind

More than half of college students (57%) have a credit card, and being responsible with spending needs to address how debt can accumulate.¹² For Americans with credit card debt who don’t pay their bill in full, 73% carry a balance of $1,000 or more, based on an Empower study.

Another way to pay with installments — Buy Now Pay Later services — is becoming increasingly popular across America and will soon be integrated into what goes into a credit score. Though student shoppers should remember the overall cost at checkout: Empower research found that 38% of people think BNPL makes shopping feel less financially “real” than using a debit or credit card.

Money management for college and beyond

As companies and colleges court students, it will be key for young adults to understand how their spending can affect their current budgets and their financial futures.