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What advice would you give to a student moving away from home on budgeting skills?


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Kim’s Answer

Monick,

You will need to learn to distinguish between "wants" and "needs." You "need" to eat, preferably something nutritional. It does not need to be at a nice restaurant where you end up paying $15- $25. That is a "want." You do need to factor in some enjoyment - but, it might be a movie instead of a concert. Or, you might allow yourself one concert per semester. The same goes for clothes. There are lots of good deals at second hand stores. If you are really into clothes, you might want to check these out! Also, learn to use coupons. Check on-line for any deals. Be wary of credit cards! Everybody wants to give students cards! Try not to use them.


As to the budget, you simply make a list of everything you have to spend. Start with the "fixed" expenses first - they are always the same, month to month: rent, utilities, phone, internet, car insurance, etc. Variable items are the personal expenses: clothes, food, healthcare, entertainment, haircuts, laundry.


Make a spreadsheet, and track your expenses (oh, wait, there's probably an app for that !) Knowing where your money is going is the most important step in getting it under control. Different things work for different people. My parents actually used to use cash. They would put it in envelopes... one for food, one for entertainment, etc. If the envelope was empty, they were not supposed to borrow from another envelope. But, my Dad caught my Mom doing exactly that !


Find what works for you. Also, try to start putting a little aside for savings or emergencies. If you learn to do that now, it will carry forward into your adult life. Even if it is only $10 a week, just try to put it in a separate account, and let it keep building up.


It's great that you are thinking about this! You will do well!!!


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Karyn’s Answer

Great question! As a parent it annoys me that this very critical life skill is not taught in high school! Having said that there are many other places to learn how to budget you money. If you will be attending college I would recommend that you take a personal finance class your very 1st semester, be sure to review the syllabus to see that it includes budgeting. A good well rounded class will include budgeting, investing, and insurance since all (3) have a direct impact on your personal wealth. If you are not going to college or you just want to get a head start I have viewed several really good You Tube videos that teach budgeting skills for young people. I have listed a few below for your review. What is really, really, important is to be sure to put money away in case of emergency. You want to be sure to have money if your car breaks down or if you have to go to the doctor. I hope you find these helpful, there are tons more out there but these are the few that I really liked.

Karyn recommends the following next steps:

https://youtu.be/Ammv8QnPnS8
https://youtu.be/LRb7Rp0r5fs
https://youtu.be/2sWI-EQZPjI

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Ashish’s Answer

Hello dear,good question.

I have also faced the budgeting problem when I was left my home. But believe me if you successfully do that it will help you a lot into your life.

When we are at home,we are at comfortable zone and we get what we want,right. But now you are going to get out of comfortable zone. So main problem you gonna face will be no control on your food habits.

The only way is to add strict discipline into you.

So first, set your daily budget on food. It also means eat less or necessity.

Second, set your monthly transportation budget.

Third, set your monthly shopping budget.

Not spent more than that limit and you have to comply that strictly.

If you comply strictly,it will make you discipline,tolerant and stable.



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