Budgeting For College Students and its Implications

By Annmarie Edwards

Secrets of Budgeting For The College Students

Budgeting gives college students the tool to manage their daily expenses as well as enables them to become more financial conscious of their spending and saving habits.

The time for college students to make sound decisions on how to manage their expense is now. Research shows that college students have more debts than ever before.


College Students Debt Out of Control

According to the Journal of Financial Service Professionals, "More than 80% of college undergraduate students have at least one credit card, with an average credit card balance of $2,327. By the time they hit graduate school, students have racked up an average credit card debt of $7,831 and have an average of six credit cards each" (Antes, W. L (2004) Financial Illiteracy in America: A Perfect Storm, a Perfect Opportunity).

Far too many college students are in debt. Whose fault is it? College students need financial literacy to survive our spiral economy. Budgeting not only save college students time and money but helps them to make inform decisions on their financial future.


Ways For College Students to Budget

College students should have a clear picture of how much money they have on hand. This money can include wages, gifts, and savings. They should begin their budget by calculating all their expenses.

Keep track of all your bills by saving all your receipts and statements. This information is central in helping you to organize your finance according to your weekly and monthly expenses.

Categorize expenses based on your weekly and monthly spending. Expenses calculated this way will give you a clear picture of your spending. By taking stock of what you have by managing your budget, you're on your way to become financial independent.


The Benefits of Budgeting

In short, college students who plan early by managing their budget experience less stress and have more time to do the things they enjoy. In essence, college students live a more balance life by being in control of their finances.

Finally, the cost of easy spending has major implications for the financial illiterate. College students who take the time to manage their money are ahead of the game in securing a stable financial future.


© Copyrighted by Annmarie Edwards 2008