The Basics of a Budget - For College Students

A short and easy to understand budgeting guide for college students.

So, you get out of work on Friday from your average summer job with an average sized paycheck. You have some cash now. You also have a decision to make. You could spend this week's paycheck on entertainment, food, clothing, or any other one of these things that make having money so much fun. Unfortunately, buying soda, DVD's, bubble tea, and sunglasses will not help you pay for college at all. Each week when you get your paycheck you need to have a plan (which is more commonly known as a budget to the older generations). I have outline a simple on below. Feel free to tinker with it as necessary - because we all have different lives.

1. Pay yourself first! I don't mean go out and spend a bunch, I mean take between 5 and 15% out of each paycheck and put it in a savings account. You will be thankful to have this money should you ever happen upon a rainy day. By the way - The easiest way to become a millionaire is to pay yourself first and save your money. (If you belong to a religion or faith, and you feel you should tithe or give money to your place of worship or organization, this is usually done first as well).

2. Cover the essentials . Make sure you have enough food, gas, heat, and electricity to make it through. If you live with your parents, this should be less of an issue, but if you are out on your own you will need to cover the essentials before anything else.

3. Pay the bills . This is where you get to make some payments on those loans and credit cards (the easiest way not to have to make payments on credit cards is to steer clear!!!). If you can, try to pay more than just the minimum on your loans and bills. The faster you get rid of them the better!

4. If by this point you have anything left, revisit the other categories and see if you can contribute more. Debt is not pleasant. Treat it like the plague. Get rid of it as soon as possible.

5. By this point you should have about $2.89 left. Just enough for a large coffee at Starbucks!