Making a college budget checklist

How to make a budget in College

A budget checklist for going to school
Graduating from college without student debt almost sounds stranger than fiction these days. But a lot of people can, and do, make it to the finish line without a pile of loans waiting for them.

How can you avoid college debt?

Hint: It Rhymes with “Smudget”
Here’s what you need to know to make a budget plan before you head to school.

Don’t have an annual budget plan?

You’re not alone.
Only 1 in 3 people prepare a detailed household budget.

Save money by avoiding these common budget breakers

How we spend money

• 79% Thats the percent of income the average american spends (Before Taxes)

Making Minimum Payments

Making minimum credit card payments on a $500 purchase with a 15% interest rate (the average the US) can cost nearly $800.

• Original Cost: $500
• Months to Pay Off: 79 (6.6 Years)
• Total Interest Paid: $289.56
• True Cost: $789.56

Impulse Purchases

• 3 out of 4
  People say they have made impulse purchases
  They are most often magazines or candy bars

Eating Out

• The average american eats lunch out 2x per week which averages $18 per week on average. This costs $936 per year on average.
• Coffee is just as costly. $3 each day to buy a cup of coffee costs over $1000 annually.

Budget Checklist

Follow these quick tips to set a budget for you and your family before you enroll in college:

• Track your money for a month to see how you’re spending it and whee you can cut back
• Make a list of your income as well as recurring monthly and annual expense - don’t forget the cost of tuition!
• Leave room for unexpected expenses (about 10% of your budget)
• Include all your debts.
• Don’t be too hard on yourself - set realistic goals. Get the family involved and make everyone accountable so you stick to the budget.
• Balance your budget every month.
• Nothing is set in stone - make adjustments regularly.