Debt



Most college students graduate with two Ds: a diploma and debt. Fortunately, that second D doesn't have to end with disaster if you do two things:

1. Make a budget and stick to it
2. Stretch every dollar

How To Make A Budget

  Step 1: Income- figure out how much money you have

•  Estimate your income by semester and month.
• Your income source may include: scholarships, grants, family contributions, student loans, job salary, and/or savings
• Calculate how much money you will have each semester. Then divide the total by the number of months in that semester. This total will tell you the average amount of money you have each month.

  Step 2: Expenses- figure out how much money you spend

• Add up all the money you spend during a semester and month
• Your expenses may include: tuition, books, school supplies, housing, phone, food, entertainment, and/or health
• It’s a good idea to record all your expenses for a month to get an idea of you spending habits.
• To help record all your expenses it is also a good idea to keep all your receipts

  Step 3: Balance- Subtract your expenses from your income

• Subtract the total from step 2 from the total from step 1.
• If you come out with a positive number that is a good sign.
• But if you come out with zero or a negative number you will definitely need to make a few

  Step 4: Adjust-Cut your expenses

• To cut your expenses consider these ideas:
• Go to free activities on campus
• Collect coupons and use them
• Use free internet on campus
• Walk as much as possible
• Cut back on things like junk food, CDs, and entertainment

  

Stretch Every Dollar

For example:

•  Leave your debit or credit card in your room and only use them on planned occasions.
• Have your paycheck automatically deposited to your bank account.
• Don’t withdraw more than your budget amount
• Avoid convenience food store
• Make gifts instead of buying them
• Use student discounts

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