Financial Wellbeing: Budgeting

Between classes, work, and everything else that pops up, keeping track of your finances as a student can be a real challenge. Bills pile up, unexpected expenses happen, and it’s easy to feel like you’re just trying to keep your head above water. These are some ways to manage your money to help you get organized and feel more in control of your spending.

Why Budget in College?

• Financial Structure: College is a time of transition. Budgeting provides the structure you need to navigate your finances to lay down the groundwork for future financial stability.
• Plug Spending Leaks: Those 'small' expenses (the daily coffee, the impulse purchases) can add up. Budgeting helps you identify and plug these spending leaks, freeing up money for what truly matters.
• Achieve Your Goals: Whether it's saving for a spring break trip, paying down student loans, or building an emergency fund, budgeting helps you achieve your short and long-term goals.
• Reduce Financial Stress: Financial worries can be a significant source of stress. Budgeting empowers you to take control of your finances, reducing anxiety and promoting peace of mind.

Key Components

In order to set up a budget, you should set goals. These goals are the cornerstones of your budget and make them SMART.

• Specific: Clearly define what you want to achieve.
• Measurable: Quantify your goals so you can track your progress.
• Achievable: Set realistic goals that are within your reach.  
• Relevant: Ensure your goals align with your values and priorities.  
• Time-bound: Set deadlines for achieving your goals.

Then, consider breaking down your goals into income and expenses.

• Income: Only include consistent sources of income, such as part-time jobs, scholarships, or regular allowances.
• Expenses: Divide your expenses into fixed and flexible categories. Fixed expenses are your non-negotiable costs, like rent, student loan payments, and phone bills. Flexible expenses are costs that can be adjusted, such as groceries, transportation, and entertainment. You can even create a fixed expense out of a flexible expense by setting a spending cap.

Crafting Your Budgeting Strategy

• Track Your Spending: For two weeks, track every expense. This will reveal your spending patterns and highlight areas where you can cut back.
• Keep Your Goals in Sight: Regularly review your goals to stay motivated. Share them with a friend or write them down where you'll see them daily.
• Be Honest with Yourself: Accurate budgeting requires honesty. Don't underestimate your spending or overestimate your income.
• Build Good Habits: Consistent budgeting leads to good financial habits that will benefit you for years to come.

Tools for Planning, Organizing, and Tracking Your Budget

• Budgeting Apps: Explore apps like Pocketguard or GrooveMoney for user-friendly budgeting.
• Spreadsheets: Microsoft Excel or Google Sheets offer customizable budgeting templates.
• Canva Templates: Canva provides visually appealing and easy-to-use budgeting templates.
• Carolina Financial Well-Being Center: This is a fantastic resource on campus that offers students assistance with several financial topics. You can schedule one-on-one help with their peer financial coaches through Zoom or in-person!

By creating and sticking to a budget, you're not just managing your money; you're building a solid foundation for your financial future.