August 26, 2009

Financial Survival Tips for College Students

Back to school means back to budget basics.
Hopefully you had a good summer- enjoyed the time off from classes, gained some experience interning with a major firm, or spent time with your family & friends. Unfortunately, this is often the time that we get a little off track with our spending. Here are some tips to get you adjusted or re-adjusted to living like a college student:

1. Create a list of the monthly expenses you expect to incur for the upcoming year: food, transportation, utilities (if applicable), etc.
2. Total all of the income you expect to receive on a monthly basis. This includes any allowance you receive from home.
3. Compare your monthly income with your monthly expenses to see if there is some money left or if there is a shortage. If there is a shortage, begin looking at expenses that can be reduced or eliminated.
4. Identify your needs (absolute expenses) vs. wants (non-absolute expenses). Spending money on items that are needed should take priority. Be realistic about your needs- you need electricity but you don't necessarily need a new IPOD for your daily stroll to campus.
5. Shop for your needed items with the objective of getting as much as you can on sale. Use coupons and split the cost for some items with roommates (if applicable).
6. Cash is King! Use cash as often as possible! This means leaving those credit cards in your apartment or dorm room. Credit cards should be used ONLY in emergency situations! Purchasing tickets for a concert you want to see is not considered an emergency.

Consistently tracking your monthly spending habits and making a concerted effort to stick to your budget is a key factor to breaking free from financial burden and constant worry.

Bernita Williams, M.B.A.
Assistant Director, Financial Fitness