Budgeting 101 for College Students

The college offers a platform to its students for nurturing their talent and prepares them to become responsible citizens of the country learning the basics of budgeting to become financially independent adults. Living away from home, students often find it difficult to handle their expenses and it may result in financial complications. Thus, while, in college, it is advisable to create a budget for managing the finances. Adapting to the following measures help you concentrate on your studies, get higher grades without worrying about the finances. Making and following a Budget in College

Making a budget is a very simple activity, but sticking to it is an uphill task for most of the students. Pull out some time from your schedule, list down the sources of income, fixed and variable expenses, calculate the disposable income and look if you are left, with anything to put in the savings kit for those rainy days when your sources of income become non-existent or your expenses shoot up due to unforeseen circumstances. Let's look at the steps to a budget:

List all sources of income:

  • Stipend, Part-time jobs, Sumer Internships/Jobs, work study
  • Money received from parents
  • Scholarships, student loans.
  • Miscellaneous sources

List of probable fixed costs:

List all sources of income:

  • College and tuition fees
  • Lodging and Rent
  • Books, Stationary items, laptops, gadgets
  • Car loan
  • Mobile Bill
  • Credit Card Bills
  • Insurance Premiums

Variable Costs: Subtracting fixed costs from the total income give an idea of the disposable income. Listing down all the variable costs, (try listing the smallest of the expenses) gives us an idea to prioritize such costs for better management of funds. For know more click here.

  • Restaurant, eating out, snacking, drinking expenses.
  • Recreational expenses like movies etc.
  • Healthcare

If calculations show that your disposable income is lesser than your flexible or variable costs then its time to take a call on cutting down your expenses., Flexible expenses need to be cut down to the extent that you are left with an amount which you can keep as savings. Doing so will not only give you relief but will also help you in times of emergency. As you progress in your studies and the more time you spend, you will be aware of your expense pattern and can tweak your budget accordingly. It is necessary to review and change your budget according to time and adhere to it by all means. Lot of budget making tools are available online. Nowadays even banks provide options to maintain a budget for your expenses,which you can, track online.

Copyright©2013 !! Studentdebtconsolidation.us