Budget 101

Learning to Budget!

One very important aspect that comes with going off to college is the responsibility of budgeting and being smart about your money. While you are away at college, it is common you lose track of how much money you are actually spending. Before this can even happen, it is smart to have a set budget, whether it be weekly or monthly, and to stick with it!

College is meant for students to learn and grow, and one of the areas that come along with this new chapter in their lives is how to manage their finances. It is important to talk to your parents about what they will be paying for and what they expect you to be responsible for. Once you have set these specifics, you can then plan out how you will be spending your money and possible allowances.

You should determine on average how much one should be spending throughout a normal week and aim to stick to that number. Some weeks you may end up going over and some you may end up staying under budget. These fluctuations are normal and allow for some flexibility in spending. Another important aspect of being smart about your money is saving. Saving your money when you can, allows you to have extra on times when you really need it or even just for some extra weekend fun! Being in college gives you the freedom you need to learn how to navigate the real world and having the structure of a budget only helps you further!

When talking about budgeting with your parents, you should discuss if they would like you to get a job. There are plenty of job opportunities for students on or around campus. There are options for full-time jobs, part-time jobs, and internships that give some sort of compensation, so there truly is something for everyone. Being able to have your own extra disposable income allows you to show responsibility to your parents and allows you to have more money beyond your allowance. Getting a job as a student also allows you to have some financial freedom and lets you splurge on things you would like such as going out to dinner or a new clothing item.

Another great tip for your college student is having them get their own credit card. It is a great way for them to start learning how to budget themselves while building their credit for when they are out on their own. We’ve got some great credit card recommendations. Going back to the questions in the first paragraph, how much money should your child get?  While this is your choice, I recommend anywhere from $50-$100 per week. Should you give it to them weekly or monthly?  Recommend weekly to start and see how it goes. Should they get a job? That really depends on the course load and if they can manage both.

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