Budgeting Basics

Learning how to budget your money is a crucial survival skill for students at every step of your educational journey. By starting with good financial habits now, you'll be able to make the most of your money during and after your educational program.

Create Your Budget
Creating and maintaining a budget while you're attending school can be tricky, because your income and expenses can drastically change. Your first step should be to create a budget worksheet, which compares your available income with your estimated expenses. You may want to begin by looking at the income you have available after you have paid large ticket items like tuition and fees. Your income should include money from income and assets, family support, and financial aid resources.

Begin by listing your expenses in two groups: essential and nonessential. Don't forget the most essential expenses like educational fees, rent, and car or credit card payments. Try to make your list of expenses as accurate as possible, including:

• Meals
• Laundry and utilities
• Entertainment
• Transportation
• Home essentials

Create a Spending Plan
From your budget worksheet, you should be able to figure out the minimum and maximum funds you'll have to work with each term. Divide your minimum funds by the number of weeks or months in the term to create a reasonable spending plan customized for you. Create a new budget at the beginning of each term to account for changing expenses and resources.

Keep Accurate Records
Stick to your new budget by keeping accurate purchase records. Carry a small notebook with you for a few weeks, and record your purchases and ATM withdrawals. You may be surprised by how much you spend on incidental expenses or impulse purchases. By keeping track of your expenses, you'll be better able to identify your spending weaknesses.

Money Saving Tips
No matter how well organized your budget is, there may be times when your expenses outweigh your income. Use these popular student tips to save money and stick to your budget at any time of the year:

• Take advantage of discounts for students
• Attend free concerts and events
• Use coupons and look for sales
• Eating 'in' is generally more cost effective than eating 'out'
• Find deals on second-hand text books
• Compare banks to get the lowest loan fees
• Avoid credit cards purchases

Keeping a budget requires self-discipline and moderation, but the good financial habits you build while you're in school can save you money long after you complete your educational program.