How do I correctly start up a budget for college? I was told this is the best way to succeed, is this true?
#work-life-balance #money
3 answers
Luke Ilijevski, CPA
Luke’s Answer
This is absolutely crucial for your success in college if money is a constraint! Mapping out the costs associated with housing (if not local), food, supplies, books (can be expensive), etc will allow you to know the final cost for attending a particular school. This might also help you better forecast the debt you'll have, and one you have all the forecasted costs mapped out you'll be able to make the most educated decision and reduce the risk of "getting surprised" by the cost of college like some students. I would first create an excel worksheet where you put all the expected fixed costs you would experience during a given semester (as mentioned above the housing, food, etc). Next, continue to make this out for as long as you expect to be in college.
Some things to consider might be if you have AP credits or plan to take classes/semesters at a community college, you might be able to cut costs or even graduate early! This would certainly save money and help with your budget. Additionally, you may look into being a resident assistant or being a student worker during the year. This would be a "cash inflow" and may provide some income to better support yourself while in school. As an example, I worked as a resident assistant for 1.5 years and received free housing, free food, and some work experience to add into my resume. In doing so, I saved approximately $4,000 in housing and $2,000 in food a semester, which resulted in over $18,000 expenses saved just by working a flexible job on campus! I didn't need a car as I lived and worked on campus, so that actually yielded further savings.
Get creative, map out everything you can think of, be mindful of the budget you have to work with, and I'm sure you'll set yourself up for success!