College kids are notorious for being broke, it's their first time on their own and it can all be a little overwhelming, which may lead to them spending a little too much money. Here are some budgeting tips.
First of all, students must determine what budgeting strategy they're going to use. A well known strategy is the 50/30/20 strategy. 50% goes to needs, 30% to wants, and 20% into savings. While it isn't one everyone follows, it's an easy way to budget. Students using this technique must determine how much money they're going to spend each month. This all depends on what lifestyle they are living. For example if a student lives on campus they only have to pay for housing at the beginning of the semester, and the same goes with meal plans. While off campus students will have more monthly bills they need to cover. So students will need to determine their monthly expenses.
They should begin by covering the necessities. Once those are determined and money is set aside they should set money aside for things they want to do, for example eating out or going on dates. Then once they have set aside money for wants, they should put money in savings. "I think that it's best to try to not go into debt whenever possible.” Says Benjamin Seamons, a student at Snow, “Obviously there are some cases like buying a house where you may have to find some other sort of accommodations. And for reasons like that trying to get a good credit score is good. But in general I would say try to only spend what you have."
In conclusion, while budgeting can differ from person to person, it’s important to know how to keep track of finances. And some basics are to set money aside for needs, wants, and savings.