Budgeting can be one of the most important parts of a financial plan. In order to manage your money most effectively, not go into debt, and in order to save for future expenses, like a home or college, you must have a budget. The budget will allow you to allocate specific amounts of money towards different expenses, like college tuition payments, car payments, student loan payments, and variable costs, like food or clothing. Especially with the growing cost of tuition and college expenses, it is more than ever important to keep to your budget.
One of the first things you can do is list your monthly income, from a job for example. Then, add up all your expenses, which can include student loan payments, car payments, housing payments, food, clothing, and entertainment. Then, subtract your expenses from your income. If you have a positive number, that is good and you'll be able to save money every month. If you come up with a negative number, look through your monthly expenses and try to see where you can reduce them so you'll get out of that negative number. If you do have a negative number, that means you will actually be spending more than you take in, which over time, adds up to a lot of debt and could end up being a financial disaster in the future.
Keeping a budget is the best way to manage your money in college.
Money Smart Kid