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Add budgeting 101 to your credit load this semester
Branch Manager
Citizens Bank- Stevens Point
The broke college student. The short supply of Ramen Noodles in a college store is a sure sign that this is the fate for many students. Even though a new school year just recently started, chances are, as a student, you may already be feeling strapped for cash having just paid for tuition, housing, books and meal plans.
The worst part is that you can’t go knocking on the financial aid office’s door until January! Believe it or not, if you are smart and learn how to budget, college doesn’t have to leave you penniless.
Here are some tips that will help free up some cash during college:
You’re going to want to write this down. The best place to start when creating a budget is save all receipts and statements for one month. It’s an easy way for you to assess what you’re spending your money on.
Next, write down your monthly income and list any non-reccurring expenses such as renters insurance. Also keep in mind any credit card balances. Are you making enough each month to satisfy your current lifestyle? Have you been able to save any money?
Time to cut back. If you answered “no” to the last questions, it’s time to make some cutbacks. Begin by eliminating non-essentials such as cable television or Internet access in your apartment or dorm. Rather than buying books or movies, head to the library on campus. Consider buying used textbooks instead of brand new books. Another obvious way to cut back expenses is to eat out less. To save at the grocery store, make a list before you go, stick to it and be sure to use coupons.
Make it a habit. Since funds will likely be tighter for the next few years, budgeting needs to become a habit. Over time you will feel cash flow freeing up, but rather than going on a spending spree, put this extra cash into your savings in case of an emergency, such as a car repair.
Ask for help. Budgeting can be difficult and, like anything, needs practice, so don’t be afraid to ask a friend or your parents for extra advice on ways to cut back or increase income. Also, be sure to talk with a trusted local banker as they can provide you with resources and options for making your money work smarter for you.
Remember, learning how to budget while in college is one lesson you don’t want to delay on, especially since you now have the support of your parents and the financial aid office. Best of all, this is one lesson you are sure to use throughout your life.
