Yawn. This is what you could think when we start debating budgeting, but don't be mistaken, guaranteeing that you manage your financial affairs effectively can make the biggest difference between completing your degree or diploma with the remainder of your buddies and dropping out of college on your own as you couldn't afford to feed yourself.
Some scholars are more lucky than others and will be receiving financial help from family or funds. Others will be borrowing the largest amounts of money that they have ever borrowed so far in their lives (and just wait until you get a mortgage), accruing liabilities which will last for many years after graduation. It took me almost 8 years to complete paying back my Student Loan! While the paying back of any long term, low interest loans like Loans might be at the deepest depths of your intelligence at the moment, you'd be doing yourself a favour by reminding yourself when you are making an attempt to decide between the Gucci sunglasses or the Prada bag.
O.K. Let's assume that you're leaving home and are school bound, ready to take on the world. Now let's discuss how to make sure your finances don't hinder you from staying there!
Firstly , some thinking. Decide exactly what amount of money you are going to be receiving each month (doing it monthly gives us more significant numbers and allows for weekly fluctuations). Whether it's from a loan, savings, or family, just come up with a ballpark figure. Then create a list of everything you think you will be spending on in any particular month. At about that point, it's worth asking someone who owns their own house what they have to spend on. Try your mom and pop as they are quite likely willing to lead you to feel guilty about what sort of time you spend on the phone or how much more it costs them when you don't switch off the lights.
Here's a sample list of things for you to consider. Note that we are not providing any figures because these can alter greatly from person-to-person and different locations.
Inward bound
- Student Loan
- Family contribution
- Salary
- Other
Outgoing
- Tuition charges
- Accommodation charges
- Electricity
- Gas
- Water
- Landline telephone
- Mobile fone
- Television licence
- Insurance
- Transport (if you're taking your own car then break this down further e.g. Petrol, road tax, insurance)
- Toiletries
- Washing costs
- Clothing
- Course books
- Net connection
- Entertainment (think about all the things which you do for fun e.g. Theatre, beer, clubbing, mags, cigarettes)
Once you have your list, input it into your spreadsheet or pad and beginning assigning some values to them.
Sum up your predicted outgoings and subtract them from your inbound. Hopefully, you'll have a positive number left over. If not, then it's time to start pruning that outgoings list and dropping what you can or get thinking about earning some extra money from a part-time job.
If you're already working and still feel uncomfortable about your financials then try chatting to your Student Welfare Officer. They might be able to give you particular information about your given situation. It is also worth speaking to your bank's student consultant as they will frequently prepare for things like interest free overdrafts.
Whatever you do, don't take the hiding-under-the-blanket-will-make-it-go-away approach because racking up big amounts of debt now will come back to haunt you at some later date. Naturally, I want you to enjoy yourself , but just be aware of your (financial) limits!
Some scholars are more lucky than others and will be receiving financial help from family or funds. Others will be borrowing the largest amounts of money that they have ever borrowed so far in their lives (and just wait until you get a mortgage), accruing liabilities which will last for many years after graduation. It took me almost 8 years to complete paying back my Student Loan! While the paying back of any long term, low interest loans like Loans might be at the deepest depths of your intelligence at the moment, you'd be doing yourself a favour by reminding yourself when you are making an attempt to decide between the Gucci sunglasses or the Prada bag.
O.K. Let's assume that you're leaving home and are school bound, ready to take on the world. Now let's discuss how to make sure your finances don't hinder you from staying there!
Firstly , some thinking. Decide exactly what amount of money you are going to be receiving each month (doing it monthly gives us more significant numbers and allows for weekly fluctuations). Whether it's from a loan, savings, or family, just come up with a ballpark figure. Then create a list of everything you think you will be spending on in any particular month. At about that point, it's worth asking someone who owns their own house what they have to spend on. Try your mom and pop as they are quite likely willing to lead you to feel guilty about what sort of time you spend on the phone or how much more it costs them when you don't switch off the lights.
Here's a sample list of things for you to consider. Note that we are not providing any figures because these can alter greatly from person-to-person and different locations.
Inward bound
- Student Loan
- Family contribution
- Salary
- Other
Outgoing
- Tuition charges
- Accommodation charges
- Electricity
- Gas
- Water
- Landline telephone
- Mobile fone
- Television licence
- Insurance
- Transport (if you're taking your own car then break this down further e.g. Petrol, road tax, insurance)
- Toiletries
- Washing costs
- Clothing
- Course books
- Net connection
- Entertainment (think about all the things which you do for fun e.g. Theatre, beer, clubbing, mags, cigarettes)
Once you have your list, input it into your spreadsheet or pad and beginning assigning some values to them.
Sum up your predicted outgoings and subtract them from your inbound. Hopefully, you'll have a positive number left over. If not, then it's time to start pruning that outgoings list and dropping what you can or get thinking about earning some extra money from a part-time job.
If you're already working and still feel uncomfortable about your financials then try chatting to your Student Welfare Officer. They might be able to give you particular information about your given situation. It is also worth speaking to your bank's student consultant as they will frequently prepare for things like interest free overdrafts.
Whatever you do, don't take the hiding-under-the-blanket-will-make-it-go-away approach because racking up big amounts of debt now will come back to haunt you at some later date. Naturally, I want you to enjoy yourself , but just be aware of your (financial) limits!
About the Author:
Rachael Takase, is a loan officer in a Universiry in Japan. She has been working there for several years and was promtoed to become a boss for the scholar department. She latterly stepped down to be a credit manager instead after her first child Toby was born so she may have more regular work hours.
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