Budgeting

You already know how to manage your budget in the working world, and stretching that budget with an educational program doesn't have to be a difficult addition. Use the following tips to work your educational budget in with the rest of your life.

Create a Budget Worksheet
Your income and expenses may change while you're in school--if you're the head of your household, you know the unexpected demands family can put on a monthly budget. Create a budget worksheet to manage your funds while you're in school. Subtract all expenses from your household's available income in order to determine your financial future. Your educational expenses may be the most substantial, so start by looking at your available income after you pay your tuition or fees for the term. Your income should also include money from scholarships, grants, loans, income, and family support. 

It may help to list your expenses in two groups: essential and nonessential. Essential expenses include healthcare, rent or mortgage payments, and important family expenses. Your nonessential expenses are the indulgences and weekend expenses within your household. When listing your essential expenses, be sure to include:

• Housing
• Travel
• Transportation
• Laundry
• Meals
• Emergency funds

Balance Budget Spending
When you create your budget, it's important to account for all of your expenses. Subtract those expenses from your income, and divide the remainder by the number of months or weeks in your school term, and you'll have a more specific spending plan for your school term. Because your income and expenses may change, it's important to make a new budget before the beginning of each school term. 

Keep Accurate Records
Carry a small notebook to make it easy to record all of your purchases and ATM withdrawals. Accurate record keeping is essential to sticking to your new budget, and you might be surprised at how much you spend. By keeping track of receipts and purchases, you'll be better able to identify where you may need to cut back.

Money Saving Tips
Even the financially savvy find times when expenses threaten to grow greater than the income. Carrying cash on you could make you less discriminating about how you spend it. On the other hand, swiping a credit card can become dangerously automatic. Keep a financial diary to determine if your weakness is cash or plastic. Here are a few additional ways to save money and reclaim your budget:

• Compare banks to get the lowest fees
• Take advantage of student discounts
• Cook your meals instead of getting take-out
• Watch for sales and clip coupons
• Buy used textbooks
• Attend free concerts and other events
• Limit your ATM usage
• Avoid using credit cards

Build good financial habits now and you'll learn the willpower and restraint that will take you through financial challenges that arise at any time.