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August 22, 2023 by

 

Having a budget that you can stick to can be a bit tricky sometimes — especially during college. Friends want to go out and go bowling, watch a movie, or to dinner, but you feel as though you do not have the means to do so. There are many ways to improve your budgeting so you don’t have to skip out on a fun night every time. Let’s talk about some basic terms first when it comes to budgeting.

 

To budget means to create a spending plan for a certain time. Income is the money you receive. Fixed expenses will routinely cost the same amount each month (think rent or car payments). Debt is something owed to someone else. Unplanned expenses are just as it sounds. This could be a surprise trip to the emergency room, car troubles, or anything you did not see coming. Savings is what is left after you have spent money on your needs and wants. In college, it may be hard to have an income or a steady flow of cash coming in, so treat every dollar with care. The following are a few tips that could help you budget well:

 

  1. Give to your church. This may be a tithe (10% of your income) or money set aside. Giving back to your church allows you to honor and thank God for what He has gifted you with. Try to make it a habit of at least giving something back to the church. 
  2. Spend less than you make. Putting the rest in savings can help down the road on future purchases or if there is an unplanned expense. 
  3. Always spend money on what you need first. After you have covered these, try to prioritize wants, but save some of the money as well.  
  4. Create a sheet or document that records your spending amount and what you have bought or paid for. Many people use Excel sheets or download apps to do this.  
  5. Set realistic goals. These goals can change but make both long-term and short-term goals. For instance, if you know you really want to buy an iPad to take notes on for classes, set a financial goal for it and save little by little until you have that money. Goals do not need to be huge (like paying off all college loans by the time you are 25 — that most likely will not happen). But, if you have a certain amount that you want to have paid off by 25, it is more realistic than having everything paid off. College debt can be labeled as “good” debt because you are actively working to create a specific career path. “Bad” debt can be too much shopping (do you need that third pair of Birkenstocks?) or vacationing and not having enough money for an emergency. Avoid bad debt.  
  6. Review your spending habits to see if there is anything you do not need or have not used. If you are paying for something like a Netflix subscription but do not have time to watch anything, get rid of your subscription. You can always create another account if you want.  
  7. If you get cash, put it in a savings account or you can even have a jar to put it in that is designated toward a goal or vacation.  
  8. Avoid impulse buys — be intentional and thoughtful about any purchase you make. Impulse buys are almost always “wants.” 
  9. Understand how interest and credit cards work. They typically carry higher interest rates and you can start paying interest on top of interest if you don’t pay it off monthly. This is an extremely difficult cycle to escape.  

 

The 50/30/20 rule is recommended for people to use to make budgeting a little easier. It is important to keep giving to churches and organizations in the forefront of your mind as you think of these categories. For the remainder, “needs” take the biggest chunk at 50%. This can include housing, groceries, and car payments. The 30% category is for your “wants.” This includes doing fun things with friends, shopping, and taking vacations. The remaining 20% goes into savings. This would be an emergency fund, paying off that college debt, and overall making sure you are setting yourself up well for the future.
Budgeting does not have to be a tedious process; if maintained, it is easy to keep yourself on track. Develop healthy habits concerning your money, and they will last a lifetime.

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