College Budgeting
Hanging onto your cash. That's what budgeting means.
While it's tempting to let the money flow out as fast as it comes in, that's the
worst way to manage your money. And, forget it if you're saving for something big,
like a car. It won't happen unless you decide to make your money count.
College Planning Calculators
- What will it take to save for a college education?
- What is the value of higher education?
- What investments can I use to save for college?
- What expenses do I face prior to attending college?
- Should I live on campus, off campus or at home?
- How much should I budget for college living expenses?
- Is a meal plan a good deal?
- What is an estimate on my Education Loan Payment?
How to begin
- Make a list of all the expenses you EXPECT to have in a week and give as accurate an estimate of costs for each one as you can.
Include items like:- Total automotive expenses: gas, oil, insurance, plus some money for repairs
- Transportation: if you don't have a car, estimate how much public transportation will cost you
- Entertainment money: movies, fast food and snacks, video arcade, movie or game rentals
- Clothing
- Haircuts, makeup, personal items
- Books, magazines and newspapers
- Any other items you might normally buy
- Next keep a list of all the expenses you ACTUALLY have in a week.
Write down EVERY amount that you spend and what it is for.(NO CHEATING!)
Now compare the two totals and lists. How on target were you? - Try to determine the percentage of your total weekly income each ACTUAL expense represents.
For example, if you have $100 in your paycheck for the week and you spent $20 on entertainment, create a pie chart showing 20% spent. Do the same thing with each category.
Once you can actually SEE where your money goes, you may be able to change your spending habits to make better use of your money. - Investigate more efficient ways to pay for things.
Instead of ALWAYS using cash, try these methods:- Use a debit card attached to your checking account rather than carrying "extra cash" that can be easily spent.
- Carry a phone card instead of phoning long distance to talk (especially if you're away at college)
- Use Internet Banking to monitor accounts and watch what you're spending.
Thinking before you spend and asking yourself "Is this worth it?" will go a long way towards helping you manage your funds.
