Guide to Budgeting for College Students

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Attending college has never been more expensive, so it’s crucial to adopt good financial habits early and make plans to help you pay for a college education. Budgeting your money will help you to cover your expenses, and you should also designate money to set aside for the future. The earlier you learn financial responsibility, the better equipped you’ll be to succeed.

Importance of Saving Money

Saving money is an important part of becoming financially secure. You might save money for a specific purpose, such as college or retirement. You might also save money just to have some extra funds on hand to use if a financial emergency happens. Having an emergency fund is important to help you deal with things like car repairs or unexpected medical bills without having to go into debt. Choose how you save money so you can earn interest on your savings. Options include a savings account, a money market account, savings bonds, and certificates of deposit. Once saving money becomes a habit, you can watch your savings grow over time.

Part-Time Jobs While Going to School

Working while you’re going to school has a number of benefits. Having your own spending money will enable you to pay for incidental expenses such as gas, food, and clothing. You can also begin to build up your savings when you have regular earnings. Juggling a part-time job and keeping up with school can be challenging, but you’ll be learning important time management skills that you’ll use throughout your life. You can also gain important skills in a part-time job, some of which you might use in your future career.

Why Is Budgeting Important While in School?

Creating a budget and living within it is a crucial life skill. Finances tend to be tight during college, especially as tuition and other college expenses rise. As you create a budget, you’ll need to think about the ways you spend money. Some expenditures are for things you need, and other expenditures are for things you want. Separating needs and wants allows you to prioritize your expenses so that your needs are covered if your budget is tight. Track your income, calculate your expenses, and determine how much money you need to take care of basics like food, rent, and gas for your car. This will be the basis for your budget, and you can then determine how you want to use any money you have left over.

Finances After College

After you graduate from college, you’ll have the education you need to begin your career. After finding a job, it’s time to create a budget that factors in your new income level as well as any new expenses. You may also have some student loan debt that you will need to begin paying down as quickly as possible. Pay off debt that’s accruing the most interest first. It’s also never too early to begin contributing to a retirement fund. Many employers offer retirement plans. If your employer has such a plan, contribute enough each month to qualify for the employer match.

Budgeting Tools

A monthly budget will help you manage your finances and meet your financial goals. You’ll find online budget trackers that you can use to manage your funds. You can also print out a budget and keep track of your finances on paper if you prefer. After a month or two with a new budget, assess your progress and be ready to make adjustments if necessary.

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