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Introduction
Creating a budget for the academic year in college is one of the best things you can do when you’re in college. This may be the most important step after graduating from high school. A college budget is similar to an annual budget, but it is specifically designed to help students cope with tuition costs and various expenses throughout the year.
List of College Costs
As a college student, your biggest expenses are likely to be tuition fees and related costs of attending school each year. If you live in student housing, your housing costs will also be assigned as an annual expense.
List of Daily Expenses
Next, you need to record your monthly daily expenses. If you live off-campus, these costs may include rent, groceries, and utilities. You will need to create a category for clothing and entertainment (movies, weekend plans, parties, spring break trips), transportation, and other expenses. It’s important to budget for everything you plan to spend money on.
Creating a Total for the Academic Year
After that, you need to add these totals together to determine the overall cost for the entire academic year. Now you know what you’ll need to survive throughout the school year. This total gives you a specific goal to work towards with your summer job and other jobs.
Determining How to Find the Money
It is important to consider all the options available to help you pay for college. Your income list can include college savings, summer job earnings, part-time job earnings, scholarships, grants, and student loans. Student loans should be your last option and should be used only to fill gaps if you encounter problems earning enough money. If your parents have saved money for college, be sure to spread that out over the total time of your study. It is also worth the time and effort to search for scholarships through private institutions or look into tuition reimbursement through your job.
Following Your Budget
Once you have determined your expenses, the next challenge is to stick to your budget. Since you will have saved a lot of money or will receive the student loan or scholarship in one amount, you need to ensure it is distributed properly. Choosing the right accounts for a college student will make it easier to divide the money into monthly amounts.
Determine the amount you will transfer to your checking account each month to cover your monthly expenses and leave the rest of the amount unused. Avoid touching it in extreme emergencies, or you may spend the last weeks of your final semester hungry because you’ve run out of money for the semester.
It is important to find a balance between graduating quickly or progressing more slowly so you can work and graduate with minimal debt. Your college budget can help you with that. Make sure to continue looking for ways to save on daily expenses to reach your goals.
Source: https://www.thebalancemoney.com/create-a-budget-for-college-2386186
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