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For many college students, attending college will be the first time they’ve managed their own money. Not having a budget in place leaves some students eating Ramen noodles and scraping under coach cushions for loose change. Investing time to create a budget will safeguard you against overspending. It will also help avoid common pitfalls, such as falling back on credit cards.
Instructions
- Make a list of your expenses. College expenses, such as housing, tuition, food and books are expensive. Budgeting for these items is your best strategy for preventing overspending. Break down these expenses each month. This will allow you to evenly distribute money throughout each term.
- Track the amount of funds spent on entertainment. Many students forget to adequately budget for entertainment costs, according to Bank Rate. These costs can add up quickly and easily bust the budget. When planning for entertainment expenses, be realistic. You’ll need some entertainment to minimize burnout.
- Pace spending when receiving a large amount of funds. Receiving a lot of money at the beginning of the term is a challenge for many college students. According to Bank Rate, it’s important to avoid the urge to spend funds. Instead, place the money in a savings account and pace yourself.
- Track your budgeting progress. A budget is a work in progress. The first time around, it might not be perfect. For example, perhaps you underspent on books but doubled spending on entertainment — making adjustments to your budget will help you manage expenses better in the future.
