Hi

It is the beginning of June, summer is fast approaching and many students are getting ready to take that big step….attending college.

If this describes you, then the first thing you should do is to read my report on how to pay for college .

Equally as important is coming up with a budget or spending plan for college.

If you are not yet working or your parents are going to be involved in financing your studies, then sitting down with them and working on a budget is important.

If you’re going to be taking a campus degree you should already have an idea of the tuition and boarding costs. What you need to work on are your indirect costs such as food, books, entertainment, transportation, phone, buying a computer etc.

To get an idea of these costs, consult with an experienced college student or have a talk with the student affairs office at the college of your choice.

At the start of the term, priority should be given to meeting with your roommates and deciding how expenses should be shared.

Also, for the first two or three months of the semester, log every expense down to the last pencil. This would allow you to adjust your budget where necessary.

If you decide to enroll with an online university , tuition is the major cost since you probably wouldn’t have to alter your other expenses that much.

For example, your laundry, transportation and room and board expenses should still be the same. You can take your classes at home (where you already live), you won’t have to get dressed for classes (so laundry expenses remain unchanged) and you won’t have to drive or take the bus to school.

However, you may have to buy books and stationery, pay back a loan you took out to help pay your tuition and so on.

When you have assigned a dollar amount to your expenses add another 10% or an amount that you are comfortable with for miscellaneous expenses. Now you can set up a plan for spending and saving.

This is also a good time to discuss credit use or abuse with your parents. Many students are offered credit cards in college and go hog wild, ending up with massive debts. You don’t want to fall in this trap.

A credit card can provide some relief in tight situations so discuss with your parents the idea of getting a secured credit or a card linked to their financial situation. This would allow them to monitor your spending and teach you financial responsibility at the same time.

Overall, careful spending during your college years is a good precedent for a healthy financial life throughout your adulthood.

Make it a great week

David