Good Spending Habits

All students, not just students receiving financial aid, need to establish good spending habits. It is critical for you to know how much money you have and keep your spending under control.

• Evaluating your income and expenses.
• Decide on the planning period to be covered — a month, quarter, or year.
• List all anticipated income sources and expenses item by item.
• Rank your expenses to establish their relative importance.

Which expenses will need the largest amounts of time, money, and attention? You may have to forgo some expenses if your income is not sufficient.

After assigning dollar amounts to each item, you may need to make adjustments. Budget surpluses allows bills to be paid off early or puts money into savings to be used as a contingency fund for future emergencies. In the case of a budget shortfall, options include cutting down variable expenses like utility and telephone bills, clothing, recreation and entertainment, etc. Also, increase your income through a part-time job, additional loans, or family assistance.

Monitor expenses closely. Variable expenses can quickly take over the budget. By keeping accurate records of income and expenses, you can tell how well you are sticking to your financial plan. You can determine reasons for surpluses or shortfalls and begin to better anticipate them.

Compare actual income and expense figures to the ones budgeted. Make adjustments during the next planning period. Continued planning and good evaluation of your plan will ensure meeting your financial obligations now and in the future.

Continually ask yourself "Can I do without this?"

The hardest thing to do may be defining needs v. wants. Try to live as frugally while in college so as to limit debt and make for a better life in the future.

And remember, credit cards are debt -- not income. Use them wisely and in a limited fashion.