Let’s face it; most of us are experiencing what is known as the Poor College Student Syndrome. Luckily, this stress and anxiety-inducing ailment has a simple cure: budgeting and managing money.
On Jan. 26 the Institute for Women’s Leadership held a program called, “Women and Money,” where Linda Mielke, a financial adviser, from Thrivent Financial for Lutherans shared her skills with students and gave hints on how to successfully budget.
It all starts with knowing the big-picture view of your financial situation by looking at your net worth. First, combine all of your assets (everything you own including investments and traditional bank accounts.) Then subtract the asset value from your liabilities, or everything you owe.
After you analyze your net worth, you can develop a budget by looking at and recording the inflows and outflows of your money. It is helpful to create a monthly budget, a way that you can look back at your expenses and income to determine if you are financially stable. If you end up being short on money, the budget will help show where cuts can be made in your spending habits.
There are many ways to cut back on expenses. Instead of driving to the movie theatre, rent a movie from either library. Plan a cheap date by taking advantage of the arboretum and packing a picnic or attending on campus activities. Rather than paying money to get your nails done at a salon, have a girl’s night and paint each other’s nails. Buying used textbooks and making a shopping list is also helpful. If times are really tough, try to limit the amount of Gary’s consumption every weekend.
The next part of managing money deals with making and defining an attainable financial goal, such as buying books, purchasing a car, or saving $25 a month. Write down and plan how to reach these goals to make them a reality.
“Simple, affordable and doable steps are necessary to accomplish your goals. The biggest mistake I see students doing with budgeting is not thinking ahead and sticking to their financial goals. These goals require ongoing planning and organizing,” Mielke said.
Creating a file system of expenses and keeping records will help you stay organized and savvy with budgeting. Some other helpful hints include: prioritizing needs from wants, planning for emergencies, using caution with credit cards, keeping track of spending, and getting into the habit of saving.
“Students must learn how to be responsible with their money management, especially if they want to be financially successful. Following easy steps and committing to budgeting will help ensure financial security,” Mielke said.