Budgeting

Whether you're just starting out with your first bank account or you're looking for ways to save money while in school, learning how to budget your money is a crucial survival skill for any student. By starting with good financial habits now, you'll be able to make the most of your money during and after your educational program.

Budget Worksheet
Maintaining a budget while you attend school can be tricky, because your income can fluctuate and come from a variety of sources. The first step is to create a budget worksheet, which compares your available income to your expenses. Your biggest expense will probably be tuition and fees, so you may want to start by looking at the income you have available after you have paid your tuition and fees. Your income may include money from grants and loans, employment, and family support.

It may help to list your expenses in two groups: essential and nonessential. You should always pay essential expenses first, which include living expenses, like rent and utilities, and books. Try to make your list of expenses as accurate as possible. Some other examples are:

• Meals
• Laundry
• Transportation
• Toiletries

If you don't have income left over after you've covered essential expenses, nonessential expenses will probably have to take a backseat while you're getting your certificate.

Spending Plan
Once you've completed a budget worksheet, you should be able to figure out how much money you have to work with each term. You can divide that money by the number of months or weeks in the term to create a more specific spending plan. It's important to make a new budget at the beginning of each term because your income and expenses may change.

Record Keeping
Good record keeping is essential to sticking to your new budget. Carry a small notebook to make it easy to record all of your purchases and ATM withdrawals. You may be surprised by how much you spend on incidentals or impulse purchases, and by keeping track of these expenses, you'll be better able to identify where you may need to cut back.

Money Saving Tips
If you're like most students, there will be times when your expenses are greater than your income. Here are a few ways to save money so you can stick to your budget:

• Take advantage of student discounts
• Attend free events
• Limit how often you dine out or order food delivered
• Look for sales and use coupons
• Look for deals on second-hand text books
• Compare banks to get the lowest fees
• Limit your ATM usage
• Avoid using credit cards, whenever possible

Sticking to a budget requires willpower and restraint, but building good financial habits now can help you in the long run.