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Budget Management

Budget Management
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Students in college need Budget Management skills to be able to budget and spend their money wisely. Most students pay for education when they are in college with loans and debts. If they fail to spend the money in necessities they may accumulate huge debts which they will pay after college. By budgeting the student will be able to control spending and learn financial management skills when they are in college. If you have not joined college or you are a freshman you can ask another student or the student affairs office to help you know the expenses which you are likely to incur. Use that information to make a budget.

There are Budget Management software in the market today but the student can still create a good budget using a pen and a notebook it does not have to be complicated. Make a budget of the money you receive monthly to pay for college. Breakdown the money received quarterly or annually into monthly figures and allocate to different categories as shown below-:

- Parent savings and loans
- Student's part-time income and personal savings
- Grants and scholarships
- Work-study
- Student loans
- College Saving Plans

Budget Management includes estimating how much you expect to use per month. Prioritize your expenses with the basic expenses coming first and include-:

- Tuition and fees
- Room and board or rent
- Transport
- Books
- Food and groceries
- Computer
- Supplies
- Clothing

Other expenses to be budgeted for include telephone, gasoline, laundry, utilities, entertainment etc. The budget should have categories of each expense allocated per month and should be compared with the actual amounts spent each month. Put a net column in your budget to show the difference between the budget and the actual spent in each category. The net at the end of the month should be zero or more. To avoid having a negative balance always add your expense up when you spend or daily and check against the budget, if you find you have spent all the money you had budgeted for one category, don't spend more for that expense.

You might need to move funds from one category to another when there are emergencies or unexpected expenses which are a priority. Learn to stick to your budget avoiding over-spending. In Budget Management you will need to track your spending and stop spending more money when you have exhausted the budget of a particular category such as entertainment. Look for part-time jobs and summer jobs to pay for your expenses.

When you go shopping or out with friends carry the only money you have budgeted for and leave the rest. Do not carry what you don't require because you might overspend. Budget Management involves looking for cheap alternatives like eating in the school cafeteria instead of eating out and buying textbooks where the prices are cheaper than in the school bookshop, travel with a friend's car and share the gasoline expense.

Last modified onTuesday, 02 April 2013 16:11
More in this category: « Education Funding

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