Students: how we 'life up' the money

Money..Money..Money....

You're in college, so it's too early to be thinking of having a personal financial plan. That's for after you graduate and you're making the big bucks, right?

Unfortunately, many college graduates who believe this start their new lives after graduation weighed down with debt that often follows them for the rest of their lives. You don't need to be one of them, but now is the time to make sure that you don't start down that road. According to an advisor at a major university, more students drop out of college due to credit card debt than to academic failure. The best way to prevent this is to adopt a spending plan early in your first semester, and stick to it.

Like anybody else, college students are usually surprised at how much the little expenses add up to. A cup of coffee at the local coffee shop before classes each morning can total RM36 a month, or nearly RM216 a semester. Smoking is one of the most costly habits. At RM6.90 a pack, a pack-a-day habit can total well over RM1242 within a semester!! It doesn't take much to reach thousands of dollars a semester on incidentals. Students who get a handle on their spending and their available funds early can avoid the stress of being unable to pay off their bills and having to work more and more hours during college in order to juggle their finances.

The basics of budgeting are the same for students as they are for anybody else: list the sources of your income, such as savings from your summer jobs, financial support from your parents, financial aid from the school, scholarships, and income from your job if you have one. Then list your expenses, such as tuition, books, groceries, gas, entertainment, etc., in as much detail as possible. Print out the budget worksheets listed in the link box at the top right of this page, or make your own.If your expenses are less than your income, you're in good shape as long as you stick to your spending plan. If your expenses are MORE than your income, you need to find ways to cut spending or increase your income. In this new year, try to make a new mission in managing your own financial plan as to make sure that you have a real deep pocket till the and of each month..=)