Each year, the Office of Financial Aid (OFA) compiles student budgets for the estimated annual costs of attending Michigan. These costs include not just tuition and fees, but also room and board, books, supplies, and miscellaneous living expenses. The Office of Financial Aid describes the budget as providing a "modest but adequate" standard of living. It does not provide for costs not directly related to school attendance, such as a car or credit card debt.

Tuition costs vary according to a student's year in school, field of study, and residency classification (in state/out of state). Living expenses will be affected by whether or not a student lives in a residence hall, how much he or she eats, and other personal habits. Each year, the costs of housing, food, and tuition increase. Increases have ranged from 2.9% to 7.9% in recent years.

Whether or not students are living in the residence halls, they will need spending money. How much they need depends on how often they buy clothes, go to movies and concerts, eat in restaurants, use long-distance phone services, etc. In comparison to other towns in this part of Michigan, Ann Arbor is an expensive place to live.

Parents can probably count on a student spending around $60 a week if he or she is not extravagant. Keeping track of expenses for a few weeks is one way for students to determine exactly how much they need. Some common expenses are: phone bills, snacks, laundry, entertainment, stamps, toiletries, etc.