Living Expense Budget 2011
2011-12 low and moderate budgets for developing student expense budgets
The College Board's 2011-12 nine- and twelve-month living expense budgets show living expense costs by region and metropolitan areas. Both a moderate and a low budget are provided. The budgets reflect increases in the Consumer Price Index (calculated by the U.S. Bureau of Labor Statistics) of 2.7 percent for 2009, and an estimated adjustment of 1.9 percent for 2010.
The budgets are developed based on data from the most recent Consumer Expenditure Survey (CES) and the Indexes of Comparative Costs, both produced by the U.S. Bureau of Labor Statistics. Budget regions correspond to the metropolitan statistical areas (MSAs) defined by the U.S. Office of Management and Budget. The CES sample changes about every 10 years, which changes the MSAs for which indexes can be developed. There were 28 MSAs for the period from 1996 to 2004, but that number dropped to 24 for 2005. Therefore, the regional tables of the living expense budget now reflect only 24 MSAs. Also, since a factor could not be established for every region of the country, no region is adjusted by a value of less than 1.0.
Note that the budget values for 2011-12 are less than those calculated for 2010-11. Low inflation and reduced expenditures reported by consumers in the CES, resulted in lower calculated budget values.
The base budgets for 2011-12 are:
| Moderate (Prevailing) Budgets | |
|---|---|
| 12 Month | $23,770 |
| 9 Month | $17,820 |
| Low Budgets | |
|---|---|
| 12 Month | $15,920 |
| 9 Month | $11,940 |
The approximate breakdown of the living expense component is as follows:
- Housing: 47%
- Transportation: 18%
- Miscellaneous: 35%
The housing allowance breaks down between housing (including utilities) and food at approximately 72 percent and 28 percent.
These budgets are useful tools that will help you:
- Develop expense budgets for your independent commuting students
- Prepare debt management materials
- Exercise professional judgment