The cost of education is rising, so the management of expenditures incurred by students in various institutions is crucial for both students and family members to ensure efficient financial management. This study focuses on students pursuing higher education in Pasighat, Arunachal Pradesh and includes students enrolled in Jawaharlal Nehru College, Arunachal Pradesh University, Daying Ering B.Ed. College and Apex Professional University. Primary data were collected from 120 students using structured questionnaires and stratified and simple random sampling techniques. The findings show that students are primarily dependent on their families to finance their education, while students’ budgeting and expenditure-tracking practices remain irregular. Indirect educational expenses, such as accommodation costs, study materials, food expenditure, and transportation, constitute the major components of educational expenditure. The study also found that financial problems frequently affect students’ academic performance. This study highlights the need for improved financial literacy, budgeting awareness, and institutional support mechanisms to promote effective expenditure management among students.