Learn to Balance Your Budget
Most students aren't prepared to handle their finances responsibly when they enter college.
Get practical advice on learning to manage your money and tips to save.
Photo courtesy of Flickr and viva la vibs
What'll You Find Here?
- Make a Plan for Your Money
- Where Does All My Money Go?
- Drum Roll Please!
- A Frank Talk About Credit Cards
- So What Can You Do to Save Money While at College?
- Cookbooks Just for You
- The Best Advice
- You'll Be Needing These When You Move Away from Home
- Squeeze Out A Few More Dollars
- Good Reading to Help You with College Life
- Did You Find Some Useful Budgeting Ideas Here?
Make a Plan for Your Money
Photo courtesy of Flickr and prettywar-stlYou have to have some sort of plan in place for the flow of your money, both in and out. You can't just spend until the bank tells you to stop. It doesn't work, and don't ask me how I know.
I know it's a real pain in the butt to keep track of your expenses, but it's really, really important to do that at least for a couple of months, to see where your money is being spent. Write down EVERYTHING! That snack from the vending machine, bus fare, pitchers of beer (you don't have to show your mom this list), everything.
Where Does All My Money Go?
Photo courtesy of Flickr and massdistractionAfter keeping track of spending for a couple of months, it's time to place all of those expenditures (not such a big word; you're in college now) into categories. Here are most of the categories that you'll need:
- Rent - how much do you pay each month for your housing?
Utilities - electricity, gas, water, garbage, phone and/or cell phone, cable TV, internet access.
Food - groceries, meals at restaurants, snacks from the vending machines, anything that you put into your mouth.
Auto - loan or lease payments, maintenance, repairs, parking, gas, that little air freshener thing that hangs from your rear-view mirror.
Insurance - any premiums that you pay for health, disability, dental, auto, and apartment. If you pay these quarterly or annually, divvie it up into monthly amounts for the sake of this exercise.
Education - (OMG!) tuition, books, lab fees, supplies, and student loans payments.
Entertainment - movies, parties, nightclubs, bus or taxi costs. This is where you put the beer tab.
Clothing - include dry cleaning and any repairs that you have to pay for.
Personal care - toiletries, haircuts. This may a good time to forego your gym membership and weekly massages.
Health - expenses not covered by insurance for office visits, treatment, prescriptions, and other medicines.
Credit card debt - if you carry a balance on your credit card(s), list the amount you pay off each month.
Miscellaneous - gifts, unanticipated small expenses, laundry. Be honest. If you spend money and can't find a place for it on the list above, this is the category. I tended to buy a lot of books for pleasure (see LIBRARY below).
Drum Roll Please!
Photo courtesy of Flickr and stshores24Now that you've got your expenses all listed and categorized, compare it with your monthly income (uh-oh).
If you have positive cash flow (you're making more than you spend), good deal. Start to pay off any debts and set up an account for savings, so you have a place to keep all of that dough.
If you have negative cash flow (you're spending more than you bring in), then you need to sit down and figure out what expenses can be whittled a bit. Even small savings can add up. Make you own fancy coffee at home instead of a daily Starbucks fix.
A Frank Talk About Credit Cards
Photo courtesy of Flickr and KM.It seems so easy. You fill out an application form, you're instantly approved even though you have zero credit history, and you can buy that great outfit you saw last week.
Don't fill out credit card applications just so you buy lunch or a new pair of shoes. It's SO tempting, but please do your best to resist.
If you do have a credit card, try to save it for emergencies. Emergencies do not include great shoe sales. Don't use your credit card to buy food. The food goes away, but the bill will still be waiting for you at the end of the month.
Credit card debt DOES have to be paid back. And if you can't pay it back, your credit score takes a real hit. Employers, landlords and insurance companies can and will check your credit score before hiring you, renting to you and insuring you.
If you can't pay your bills, creditors make your life miserable. You will be afraid to answer your phone and open your mail, because those companies WANT THEIR MONEY and will hound you to get it. Believe me, you DO NOT want to go there.
So What Can You Do to Save Money While at College?
Live Close to Campus -Walk, Bike or Ride the Bus
Photo courtesy of Flickr and Billie/PartsnpiecesHaving a car is awesome! Having a car when you're away at college is even better. But the truth is, you can live without it. Really. Take the bus, bicycle, skateboard or walk to class. Even if you have somehow conned your parents to keep paying your car payments and insurance, gas will eat up your extra cash.
As a bonus, studies show that students with cars tend to have lower grades than those without.
Get a Roommate
Photo courtesy of Flickr and b.ugYou can save a ton of money by splitting the cost of rent and possibly food. Just be sure to find someone with similar values. There may be a problem if you need total silence in order to study, but your roommate wants to play the bagpipes or invite over a dozen friends. Think about these things ahead of time.
Advice on choosing a roommate
College Roommate Etiquette Tips
Roommates and Money
Eat at Home
Photo courtesy of Flickr and Peter DavisYou don't have to be a gourmet cook to survive in the kitchen. Learn some basic skills, like how to cook spaghetti.
Remember those vending machines too. The food in those things is not only expensive but also unhealthy. Walk away.
Cookbooks Just for You
The Healthy College Cookbook: Quick. Cheap. Easy.
Amazon Price: $10.17 (as of 10/06/2008)
Cooking Outside the Pizza Box: Easy Recipes for Today's College Student
Amazon Price: $10.17 (as of 10/06/2008)
101 Things to Do with Ramen Noodles
Amazon Price: $9.99 (as of 10/06/2008)
The Everything College Cookbook: 300 Hassle-Free Recipes For Students On The Go (Everything: Cooking)
Amazon Price: $10.17 (as of 10/06/2008)
College Cooking: Feed Yourself and Your Friends
Amazon Price: $13.57 (as of 10/06/2008)
Buy Used Textbooks
Try to Get Financial Aid
FinAid
Financial Aid Finder
U.S. Department of Education - Explore Financial Aid
Financial Aid for College
College Board - Eligibility Calculator
Back to College
The Best Advice
What's your best advice to help college students (and the rest of us) save money?
You'll Be Needing These When You Move Away from Home
Rubbermaid FG4D0600NATUR Configurations 23-Inch Foldable Laundry Hamper, Natural
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Polder 1232-82 Deluxe Tabletop Ironing Board, Natural
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Amazon Price: $19.99 (as of 10/06/2008)
Rolling Shelf System - Organizer (Black/Silver) (45" H x 14" W x 14.45" D)
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Amazon Price: $47.74 (as of 10/06/2008)
Shower Bucket & Tote - Pink (More Colors Available)
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Amazon Price: $15.99 (as of 10/06/2008)
Squeeze Out A Few More Dollars
or maybe more than a few-lots more.
Know your bank account balance. Please don't wait for the bank to contact you and tell you there's a problem.
However, we're all human. Just in case, get overdraft protection on your bank account. If you overdraw, the penalty can be tremendous, and your credit rating can suffer, as well. Overdraft protection gives you a little padding. Don't abuse it.
Pay your bills ON TIME. Late fees suck. They can be $50 or more down the drain for no good reason other than you forgot to pay your bill on time.
If you are going out for a night on the town, take a limited amount of cash and leave your credit card at home. Alcohol and credit cards are a BAD combination. Sometimes, friends and credit cards can also be a bad combination.
Good Reading to Help You with College Life
"37 Ways to Prepare For College"- Don't Let College Intimidate You!
Avg. Customer Rating:
Amazon Price: $3.83 (as of 10/06/2008)
Personal Finance 101 - A Beginner's Guide: What Every High School and University Student Needs to Know About Debt, Credit, and Money!
Avg. Customer Rating:
Amazon Price: $7.95 (as of 10/06/2008)
Letting Go: A Parents' Guide to Understanding the College Years, Fourth Edition
Avg. Customer Rating:
Amazon Price: $10.17 (as of 10/06/2008)
The Smart Student's Guide to Healthy Dorm Living: How to Survive Stress, Late Nights, and the College Cafeteria
Avg. Customer Rating:
Amazon Price: $10.17 (as of 10/06/2008)
Living the College Life: Real Students. Real Experiences. Real Advice. (Cliffs Notes)
Avg. Customer Rating:
Amazon Price: $10.39 (as of 10/06/2008)
Did You Find Some Useful Budgeting Ideas Here?
Thanks for dropping by. Please let me know you were here.
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OhMe
Great info. Our son has 2 more months of law school and then he will be faced with paying back his student loans but we are all so thankful he got them. 5* fav Posted September 28, 2008 |
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annetteghallowell
Hi! I just found your lens and have lensrolled it to my 2 lenses: Posted July 31, 2008 |
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ArtSiren
Great lens! Pity it wasn't around when I was a student (ahem). Would have been useful. Budgets, yep, definitely the most important thing. Posted July 29, 2008 |
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triathlontraining
Great info! By the way, the image borders really make them SNAP. Very nice Posted July 29, 2008 |
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Susan52
Yes, good advice. It is possible to get a college education without student loans. Nothing wrong with working your way through. Even an extra year of school/work to avoid those years of student loan payments will be well worth it. Or, try the GI bill with its amazing payout for your $1000 investment. Posted July 29, 2008 |
