In addition to the steps below, FinAid offers a calculator that you can utilize.
It’s important to plan for college expenses. Creating and following a budget will play a large role in ensuring the financial stability necessary to complete a degree.
At its core, a budget is simply a prediction of two things:
- The amount of money you will have to spend
- What you will spend your money on
To begin, list every source of income you will have available each month after taxes (financial aid, support from parents, part-time job, etc.) and immediately deduct 10% for savings to cover unexpected emergencies like car repairs. The amount left over is what you will have to spend each month.
Next, list every monthly mandatory cost (tuition, books, groceries, etc.) and deduct that from what you have to spend. What is left over will be your disposable income.
As a final step, list the areas where you choose to spend your money. Entertainment, new clothing and eating out are all areas where most people choose to spend. Make sure these expenses are less than your disposable income and you will be all set for a financially stable future.