The "poor college student" lifestyle may be a cliché, but that does not mean it is any less depressing. Perhaps you have exhausted a 48-count ramen supply or considered using ketchup as a condiment since a jar of pasta sauce is just too expensive. You slyly slip apples into your bag from the dining hall to replenish that empty fruit bowl at home. You even attend free events at the University, as long as pizza and soda are provided. We have all heard similar tales of financial distress, but with a plan about how to budget your income and expenses, you can avoid being reduced to such a state.
First of all, you should determine your sources of income: Do you have a part-time job? Do your parents provide you with financial support? Did you receive refund checks from the government or student loans?
"Always try to be thinking about your income and what kind of money you've got coming in," said Mel Stephens, a money management consultant with the National Student Loan Program.
The next step in calculating your budget is to figure out what your expenses are, keeping in mind that prices of some goods (such as gasoline) can fluctuate. Categorize your expenses for a typical month and determine what percentage of your monthly income should be allocated for each expense.
"The key is this: How do I look at this month to month, and what changes can be made?" Stephens said.
Although it is important to divide your income into distinct categories to pay for each of your expenses, it is also important to control your expenses: identify which purchases are necessary and cut back on the amount you spend on them. For example, check the bookstore's Web site to find the textbook list for each of your classes and scour the Internet -- or at least look through the used textbook section -- before submitting to the high prices of new books. Chances are, you'll find what you need at a reasonable price -- or at least a book that is less highlighted than the others.
It would also be helpful to refrain from impulse buying, Stephens said. Don't be lured by promotional items that come when you sign up for a credit card with an outrageous 20-percent interest rate, because that free T-shirt or water bottle isn't worth the enormous debt you could possibly face. In addition, remember that just because something is on sale doesn't mean you should buy it. Not only is it likely you don't need that item, but if you charge it on your credit card, the interest you have to pay later can reduce -- or even cancel out -- the money that you "saved."
Moreover, you should always do research on what you want to buy before you buy it, as well as read up on loan rates and banks with free checking or savings accounts. Sure, anyone who has taken Economics 201 knows that search costs will eventually exceed the benefits. In the meantime, though, you might come across huge price discrepancies, such as the price of an item at a solely online store versus at a major retailer. It's better to spend a little more time now comparing prices than kicking yourself later for paying more than was necessary.
You also don't have to spend a lot of money when you go on a date. With most movie theaters charging up to $10 per ticket nowadays, Newcomb Hall Theater offers a happy alternative at $3 a ticket and some of the latest releases, all within walking distance. Better yet, find a sunny afternoon and have a picnic on the Lawn, or take a walk on the Downtown Mall and bask in some of its old-town charm. With a little creativity, you can make dating on a budget feel like anything but dating on a budget. After all, everybody knows that it's really about the person you're with, right?
With budget management and income planning, as well as a little control on spending, you can live on a college budget -- without overdosing on ramen.
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