Kentucky Higher Education Assistance Authority
July Money Tip for Students
College students should have a budget, and it is not a bad idea for high school students either.
A budget is a tool for tracking the money you make compared with the money you spend. Many people would say a budget is a spending plan, but that doesn’t take into account savings or investments. So, let’s consider it a money plan.
Unless you are an independent student, your parents probably cover most of your living expenses. But if you have a job, they may expect you to contribute toward what they consider nonessentials such as video games, new clothes, car payments and insurance or concert and movie tickets.
You can create a budget by estimating how much money you will make and spend each month. It is a great way to avoid running out of money when you need it the most.
Best of all, a budget will show you how long it will take to save for a big-ticket item you really want.
The biggest financial goal is to have money left over at the end of the month after all of your expenses have been covered. For college students, the goal should be to graduate with as little debt as possible. But financial goals may also include saving for a trip or new car. List your short-term and long-term goals, estimating how much money you can reasonably set aside per week or paycheck. When you break down your goals and how long it takes to save to meet them, you will get a better idea of how financing really works.
To learn how to plan and prepare for higher education, go to www.gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602; or call (800) 928-8926, ext. 6-7372.