Managing money on a budget (or student loans)

So not all of us received a pat on the head and Daddy’s credit card in our wallets before we were sent off to our first year of college.  A lot of us are here on student loans, financial aid and scholarships. 

So how do you keep track of the little money that you have per month?  Some students have jobs, some have a monthly allowance to help them buy what they need, and a few are just flat broke. 

However much you have, there are a lot of ways to make sure you do not have to make the stereotypical call home begging Mommy and Daddy for some more cash.  Keep track of what you have.  If you go out and buy dinner write it down.  Whether you write down all your expenses in a checkbook or just a sheet of paper, it’s important to see what are you spending your money on. 

Keep track of yourself for a couple weeks then go back and look at where most of your money is spent, and ask yourself whether those purchases were really necessary.  Next you need to set yourself a budget.  Write down how much spending money you have a month, then split it up by weeks, and then write down what you have to buy for the week in a separate place from where you write down what you want for the week.  Wants and needs are different.  You need toothpaste and deodorant, Starbucks and ice cream a couple times a week is optional. 

Once you have budgeted out what you need, then you can set aside some money to save for a good time, to buy that new cd, or to go out to dinner with your friends Friday night.  Next, everyone needs to realize this: stuff happens.  You break something, you lose something, a friend needs to borrow money really badly. These things need to be taken into account.  Allow yourself some “oops” money so that when something happens out of the blue you don’t have to cry because of debt. 

Do you have a credit card? Or two? Be careful with these tiny plastic objects.  It is very easy to slip into the habit of reaching for this piece of plastic every time you spend a little too much money, and it’s easier to say credit instead of debit.  There is nothing wrong with having a credit card.  Using it every now and then paying off the debt quickly builds up your credit score, which will help you later on in life. 

But many college students wind up in debt from spending more then they actually have.  Once again, keep track of what you are spending and when you spend money via your credit card. Mentally take away that amount from your checking account to allow for a smaller margin of error that would result in you going into debt. 

Are you signed up on Fastweb.com? Why not? Just because you are in college doesn’t mean you should stop looking for scholarship opportunities. When you have no money you cannot be picky about where it comes from.  Log on to any of the numerous scholarship sites, and instead of going out Wednesday night , do some work on saving you and your parents some money. 

Next time you go grocery shopping, check out the ads in The Dallas Morning News.  Your grandma is the smartest woman in the world when she clips those coupons everyday.  Every dollar you don’t spend is a dollar that you have to spend later.  So check for coupons and other great deals in the paper. 

If you have a car, then you are probably excited gas prices are slowly going down–but not enough to celebrate too much.  If you can, leave it parked unless you need it to go somewhere that isn’t within walking distance.  SMU students can ride both Mustang Express and the DART for free. Both of these services will take you almost anywhere in the city for free, and free is good when you’re a poor college student.  So leave the car keys in your room and jump on the bus to go see that movie. 

And finally, if you are in debt and have spent all your money, tell your parents.  It may be scary, but they need to know so they can help you out.  Ruining your credit and having no food to eat are worse punishments then getting a lecture from your parents about responsibility. 

None of these ideas are impossible. They may take that much extra effort, but they will save you money.  

And if you are one of those lucky people with your parents’ credit card, realize that the cash flow is probably going to end soon, so you may as well start off your life right and debt free.

Rachel Carey is a freshman journalism major. She can be reached at [email protected].