A budget, also known as a spending plan, is a must if you want to be in control of your money. You must design a realistic plan for spending your limited resources and be flexible to adapt to the changing circumstances of college life.
While designing a budget you need to:
- Identify all income sources
- List fixed and flexible expenses
- Set up a monthly estimated budget
- Add actual transactions
- Review and modify the plan on a regular basis
By building a budget, you may realize you are financially better off than you thought or you might discover you need to get a part-time job to bridge the gap between income and expenses while you are in school. Either way, a college budget puts you in control, teaches financial management skills and helps you avoid the serious consequences resulting from poorly managed personal finances.