Budgeting

Even if you've already learned how to manage your budget in the real world, budgeting money for school is a crucial survival skill for any student. The good financial habits you learn while you are in school will help you make the most of your money during your educational program and after you graduate.

Budget Worksheet
Because your income or financial aid may fluctuate, maintaining a budget while you attend school can be tricky. The first step is to create a budget worksheet, which subtracts expenses from available income to determine your financial future. Your biggest expense will probably be tuition and fees, so you may want to start by looking at your available income after your school fees are paid for the term. Your income, in this case, should include money from scholarships, grants, loans, income, and family support.

It may help to list your expenses in two groups: essential and nonessential. Essential expenses may include books, tuition, room and board, and other payments. Your nonessential expenses can range from weekend spending to vacation plans. When listing your expenses, be sure to include:

• Housing
• Meals
• Laundry
• Entertainment
• Transportation
• Travel
• Emergency funds

Plan Your Spending
Account for all of your expenses on your budget worksheet. Subtract your income and divide the remainder by the number of months or weeks in the school term to create a more specific spending plan for the term. It's important to make a new budget before each term begins, because your income and expenses may change.

Keep Records
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 might be surprised at how much you spend. By keeping track of receipts and purchases, you'll be better able to identify where you may need to cut back.

Money Saving Tips
No matter how much you prepare, there may still be times when your expenses threaten to grow greater than your income. If you carry a lot of ready cash with you, you're probably more inclined to be less discriminating about how you spend it. If you have to think about going to an ATM or to the bank before you buy, you may decide you don't really need to spend the money. Here are a few additional ways to save money and reclaim your budget:

• Take advantage of student discounts
• Attend free concerts and other events
• Cook your meals instead of getting take-out
• Clip coupons and watch for sales
• Buy used textbooks
• Compare banks to get the lowest fees
• Limit your ATM usage
• Avoid using credit cards

Sticking to a budget requires willpower and restraint, but building good financial habits now can mean a lifetime of saving money.