College can be busy, and during this time, it is important to spend and save your money wisely to set yourself up for the future. Here are some budgeting tips to help the transition go smoothly:
Understand your income
The first step to figuring out how to budget your money is to understand your income and how much you can spend, considering jobs, internships, scholarships and any potential financial aid from family.
SMART goalsetting
If you do not have a source of income, consider following the SMART (specific, measurable, achievable, relevant, and time-bound) goal-setting method to start the budgeting process. Start by setting a specific goal for income.
Let’s say your specific goal is to become a server at one of your favorite Bloomington restaurants. Think about how many restaurants you would apply to, and how your goal can be achieved, such as creating a resume to improve your chances. Finally, think about why you are applying for this job, and create a time frame for when you want your goal to be achieved.
Create a spending plan
When thinking about how to budget and allocate your funds, it is crucial to establish a spending plan, which consists of creating a monthly budget, and distinguishing necessary vs unnecessary costs. Necessary costs are necessities, such as food, rent, transportation and other utilities. On the other hand, non-essential expenses are driven by desires, rather than needs. For example, money spent on items such as luxury clothing or experiences like concerts should be planned for and cut if they do not fit in with your monthly budget.
Make a saving plan
The 50/30/20 rule serves as a popular budget framework, and it suggests saving about 20% of your monthly income. It is best to start these saving habits early to provide reassurance and remove some financial burdens post-college.
Creating a spreadsheet of your income and monthly expenses will keep you organized, while aiding in figuring out what to save and what is needed for necessary costs.
Take Advantage of on-campus events
To help relieve some of the pressure of figuring out how to budget for food, take advantage of on-campus events that hand out free meals and snacks.
Be on the lookout for these occurrences in places like Hodge Hall Undergraduate Center, Franklin Hall and the Indiana Memorial Union. This fall, there was an Uber Eats truck handing out free pizza and Uber Eats coupons in front of Showalter Fountain. On the same day, there was a group of students promoting a club, and handing out bags of chips to pedestrians walking by in front of Ernie Pyle Hall. You never truly know what you will find on campus, and when you do discover free opportunities, take advantage.
Sign up for student discounts and reward programs
Many companies and brands offer student discounts if you sign up through a university email. Download apps, such as Student Beans, to stay up to date on which brands offer these student discounts, which can help you save. Also, sign up rewards programs when able, as stores often charge discount rates for members. Kroger offers free memberships, which enables customers to shop for exclusive deals and discounts.
MoneySmarts
Indiana University offers a free financial advisory service called MoneySmarts. This program allows students to connect with advisors to help with their financial goals. Indiana students also have access to CashCourse, an online financial advisory platform that provides important information about beginning your financial journey.
While budgeting and financial independence can be intimidating, creating a plan and taking advantage of free opportunities will relieve some of this burden, while setting you up for future financial success and responsibility.
This article was originally published in the Housing & Living Guide, an IDS special publication.
