by Jimi H
Students who have just graduated high school are now relaxed and eager to continue on with their life and studies, but let their relaxation distract them from what they will find to be one of the most important things in their lives; budgeting. Budgeting is a skill that will teach you to cut back on financial stress, overspending, as well as teach you overall responsibility with funds in the real world.
Let’s Talk Money
Before jumping straight into making a budget, there’s a few prerequisites. Usually if your parents are helping pay for your college education then you most definitely should have them around. Doing a discussion beforehand can help make sure everyone is on the same page and there’s no surprises. This will also assist you in gaining confidence in managing yourself and your finances.
Consider brainstorming about these topics first:
People involved in your payments (can be you or a collective amount of people like your parents): Who is going to pay for your college and living?
What Expenses Should I expect in the near future?: Will you have to pay for transportation and/or books and supplies?
Taxes: Do you file for your own or do your parents claim your taxes?
Banking: Discuss whether or not you have attained a stable and manageable income, and whether or not you will be able to maintain it whilst attending college.
What to expect
Expenses will catch you off guard and cause stress, so it is important to spend your funds wisely and anticipate bills and extra expenses.
Materials for your class course can be surprisingly hefty on your wallet. According to collegeboard.org, on average in 2020-21 college students in the USA pay $1240-$1460 in books and school supplies.
Second highest in expense amount is paying for room and board. On average you should expect to pay as low as $9k or around as high as $13k.
Typically, would you walk, bike, or drive to school? Can you afford it? If you live on campus, it would be smart to obtain a bike, skateboard, or just walk to school. Paying for car insurance, gas, and on top of that car payments would be detrimental to your wallet. Probably a smart one to just ‘take the extra mile’.
The expendable things like clothing and entertainment you can do whatever you please with. There are all types and price ranges for clothes, so really you can wear according to what you can afford or what someone else like your parents purchase for you. Participating in things like social and recreational activities after studying hardly can help relieve stress and clear your mind.
Don’t Get Buried Alive Upon the Mounds Of Spreadsheets! Be Proactive with your Own Future Needs in Mind!
The fundamental principles of budgeting involve lowering your standards and habits still should matter even if your source of money is greater than your peers. No matter how much money you make or how easily you make it: budgeting and keeping a grip and sense on your money is always a useful tool and skill.
Most believe budgeting involves heavy amounts of ‘homework’ and tasks that are unneeded. Setting aside just one day out of the month can greatly impact your spending and tracking of your money. Using a spreadsheet from Nerdwallet.com, or using apps such as Venmo or Cashapp can ease your effort into budgeting. Once you have started monitoring and managing your budget, you can effectively decide your needs and wants.
Congrats! You Have Now Educated Yourself on Budgeting!
Works Cited
Admin. “College Students and Budgeting: the Basics.” Winds of Change, 22 Jan. 2015, woc.aises.org/content/college-students-and-budgeting-basics.
“College Budget: How to Save Money & Cut Expenses in College.” Debt.org, 28 Jan. 2021, www.debt.org/students/college-budgeting-101/.
Like the alternatives to not spending money like taking a bike or a skateboard to class.
ReplyDeleteI really found this topic interesting as I an almost graduated high school student haven't really needed to budget much and probably won't have to until college. I think the idea of having a bike or other way to getting to classes besides a car is very insightful and not something I would've considered on my own. I found the statistics about costs for books and room and board very intriguing because I didn't expect the costs to be as high as they were. This definitely helps me relieve some stress because now I feel I have a better understanding of what surprise costs to prepare myself for.
ReplyDeleteAs a senior I need to start paying more attention to my finances and budgeting. Being financially responsible isn't as easy as it seems. It's very easy to go wrong if you are irresponsible with your money. Especially with college tuition coming up as a huge expense, the advice in this piece is extremely insightful and serves almost as advice for any one of us seniors!
ReplyDeleteI really appreciated the topic, as I am someone who this post is going to apply to very soon, and having tips like these helps me stay level-headed when thinking about my financial future. Understanding how to budget is very important to get right when you're first entering the financial world, because it makes it possible to stay on top of your money, and almost never run into a problem with it. How would you suggest that someone who hasn't been budgeting, and is already in the financial world, starts their budget?
ReplyDelete