How to Prepare a Budget for a College Student
- 1). List your income on one side of a budget ledger, or input it using budget software. Income can include student loans and salaries, wages or tips. Don't include money you can't rely on. Essentially, you want to know the amount of cash you're sure to have at the end of each month.
- 2). Input your expenses on the other side of your spreadsheet. Include the standard rent, utilities, food, car payments and entertainment, and then make an allocation for big expenses that come up every few months, such as tuition and books. For example, if you have to spend $5,000 in tuition and books every six months, divide $5,000 by 6 to get your monthly book and tuition expense.
- 3). Arrange your finances like a basic income statement. Total your income sources and your expenses. Subtract your total expenses from your total income to come up with a value. If the value is a positive number, you have a workable budget. If the value is negative, you must adjust your budget.
- 4). Make adjustments to either increase your income or decrease your expenses. This can be difficult as a college student, but it is very possible. Ask Mom and Dad for some extra money, look for a second job, cut your entertainment expenses, look for a cheaper apartment or join a carpool.
- 5). Revise your budget as necessary, and review it to watch for trends in your spending that you can adjust. Make your budget flexible.
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