A Guide To Establishing A Budget For College Students

Oct 12, 2018 by

 

People, Men, Women, Graduation, School, University

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So, you are headed off to college? You are probably very excited and a little weary at the same time. That being said, this is going to be one of the most finically crucial times of your life. Depending on the school that you have chosen and your parent’s financial status, you are probably already looking at thousands of dollars in tuition fees. This isn’t going to leave you with much spending money for the necessities. This is why you have to know exactly how to set a budget that won’t drive you further in debt.

Know What Expenses To Expect

You already know that you are going to be looking at a hefty tuition fee. However, that is just the start of your spending spree. You are going to need to consider your books, pencils, folders, notepads, and other school supplies related expenses. You are also going to need to consider room and board. Are you going to be staying on campus? Maybe you are lucky enough to have a friend or relative that lives in the nearby area. Then this brings you to transportation. How are you going to get back and forth? You also will have to consider other weekly and daily expenses like food and laundry. You need to have at least a basic estimation of what these costs are going to run you weekly or monthly.

Always Track Your Spending

While there are personal loans for bad credit available, college is not the place where you want to start into a downward spiral of bad credit. It will likely follow you for the rest of your life. The basic principals of your budget will probably require you to live well below your means, but at least it will keep you from going in debt even further. Whether you are getting financial aid or help from your parents, you will always need to know how much money you have coming in and how much you are spending. Simple computer or handmade spreadsheets can help track this information. Tracking your spending habits will give you some ideal of where you might be able to cut back and save even more.

You Will Need To Plan For A Rainy Day

Just because you have reached a point where you are bringing in more money than what you are spending doesn’t mean that you can splurge or treat yourself. Remember things can turn at the drop of a hat. Maybe your car breaks or you get evicted due to a loud roommate. This is why it is imperative to take whatever savings you can and stash them away in an emergency fund of sorts. Even if you never have to pull from this fund, at least you will have a little cash accumulated that you can put toward paying back those hefty student loans.

Stay Away From Credit Cards

As a college student you are going to be bombarded with credit card offers. And, these offerings will seem convenient and handy at first. While credit cards are great for establishing credit, if you are not responsible enough to use them wisely, you will want to steer clear of these offers.

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