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Evaluate Your Budget
Budgeting is the key to successfully managing your money in college and beyond. The goal is to make the most of the resources you have and to minimize borrowing — throughout your lifetime.
The first step is to record all of your sources of income and then divide your expenses into two categories: fixed and flexible (or discretionary). Fixed expenses are items like rent, tuition, utilities — things you “need” to live. Flexible expenses are things you “want” — concert tickets, a new bag, or a week in Florida over spring break.
You can use any tool — a simple notebook, an Excel spreadsheet, budgeting software (like MS Money or Quicken) or our online budget calculator, or printable worksheet. Just do it! Set what you believe to be a realistic budget and then track your actual income and spending every month. Adjust where necessary to meet your goals.
Before you borrow:
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Research scholarships and grants available through Sallie Mae's online scholarship service at www.collegeanswer.com.
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Work during summers, school breaks, or part time during school to keep borrowing down.
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Stick with basic campus services; avoid expensive options for cable TV, telephone service, and meal plans.
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If possible, use public transportation instead of having a car on campus. You may be eligible for a student discount on public transportation. Many schools have free, on-campus shuttle buses.
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Use IM and email instead of phone calls.
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Consider living at home and commuting, if that is an option.
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Minimize credit card use, and make the required minimum monthly payment on time. Better yet, pay balances off in full each month.
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Use credit cards only for emergencies, not for entertainment.
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Attend entrance and exit counseling sessions at your college and save all handouts.
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Keep a record of all the student loans you have and save all documents you receive such as your promissory note, disclosure statement, and repayment schedule.
Reduce expenses:
» Cut back on eating out.» Scale back or eliminate vacation and travel expenses.»
Avoid replacing an older vehicle; get rid of an unnecessary car. You will save on car, fuel costs, and insurance costs.»
Reduce entertainment spending, such as cable/satellite TV, movies, and spectator sports.»
Reduce utility expenses by turning off unnecessary lights; lower the temperature on your water heater and thermostat in winter.» Reduce spending on the lottery or other forms of gambling.»
Eat before going grocery shopping. You buy more when you're hungry, leading to wasted food. Do your grocery shopping less frequently, reducing the opportunities for impulse buys. Use coupons when you shop.» Pay off your credit cards, instead of carrying a balance. Use cash to pay for your purchases.»
Shop around for major expenses, such as home repairs, car and homeowner's insurance, long distance telephone service, and mortgages.» Cut insurance costs by increasing the deductible on your insurance policies and installing dead-bolt locks on your doors and fire extinguishers in your house.» Buy used but quality products at garage sales and online. Use web search engines to comparison shop on major purchases.
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