How to Make a Budget for College

As an undergrad, your college student budget may be one of the most important tools to surviving college without incurring excessive credit card debt. It is important to make a workable college student budget and stick to the plan. Making a college student budget may be a first-time budgeting experience, so be sure to ask for help or another opinion. Here are the basics of creating a college student budget.

Difficulty: Moderately Easy

Instructions

1. Begin by determining your semester's income or available cash. Your college student budget will be determined primarily by this number. Include parental contributions, student earnings and any other sources of income.

2. Determine what will be included in your expenses each semester. Will the college student budget include rent, food, school supplies and books, or just personal needs and incidentals? Depending on the student's situation (on-campus or off, for example) and parental contributions (some parents pay all or some of students' housing costs) the budget categories will vary.

3. Determine the set expenses or bills for the college student budget. These are the categories that remain constant, such as car insurance, tuition payment plan agreements, etc. Include some money each month for an "emergency fund" for unforeseen necessities or emergencies.

4. Add to the college student budget all variable expenses--entertainment, snacks, incidentals, and other such expense categories.

5. Balance the college student budget. To make a zero-based budget, make sure that the income exactly matches the budgeted expenses for each month and each semester of college.

6. Stick to the college student budget, being careful to discipline yourself in your money habits.

Tips & Warnings

• Use a cash envelope system to limit your spending.
• Avoid signing up for student credit cards. Credit cards can add a large chunk to your college debt, and in this case, less is more.

Resources

• College Student Budget Calculator

Who Can Help Sponsored

• Earn your degree from industry experts at University of Phoenix. Take the next step in your career.

[dasbootjoe]

on 5/27/2008 Great Ideas! Nice Job...