As far as I know, 「サークルで使う」 means "To spend (money) on a circle club". However I don't figure out why the particle で is used instead of に, since I have seen so many examples of "to spend on sth" and I would say that all or at least most of them the particle 「に」 is used instead.
The meaning of 「サークルで使う」 and 「サークルに使う」 is different from each other.
As you know, 「Xに使う」 is a common way to say "to spend on X". The 「に」 indicates the target of 「使う」. So, to have the meaning you expected, 「サークルに使う」 is preferable.
On the other hand, the meaning of 「で」 in 「サークルで使う」, in this case, is likely to be for the place, the time or the situation in which the action (「使う」 here) occurs. In this case, 「サークルで使う」 is "to spend during(/as part of) a club activity."
By the way, is there any context around this 「サークルで使う」? This single sentence does not necessarily indicate what is spent is money. Since 「で」 has many meanings, the meaning described above would be wrong in a certain context.