Living in the heart of Los Angeles can literally cost a leg and
foot. A tank of gas costs more than $20, a pretzel $3, and the
expenses go on.
But they shouldn’t. College students should start creating
weekly or monthly budgets before signing themselves into credit
debt or bouncing checks.
Making a budget can not only help save money, but also allow
students to spend on items they actually want. In addition, budgets
give students more credibility with parents when asking for
emergency money.
Apartment-mates and relatives may also be keener to share
financial burdens when students show they have cost-conscious
budgets.Â
But before projecting a budget for the future, students should
keep track, organize, and look into their spending history.
Organization can start with grabbing a few hanging file folders
and labeling them with designations such as: cell phone bills,
credit statements, insurance bills, and miscellaneous. Apartment
residents should have folders for water, landline, gas and
electricity bills. And then of course, fill these folders with past
bills and receipts in chronological order.
Accessing free online accounts that most banks offer can be a
helpful resource in keeping track of daily expenses.Â
Such online registers include credits, debits and even show
scanned pictures of cashed checks. They balance both credit, debit
and credit card accounts without ever requiring students to pen in
numbers and descriptions of purchases.
Looking back critically on a year’s bills month by month
can help students budget to save up for a rainy day and for extra
spending money for the summer or spring break.
The real budgeting work begins with compiling monthly costs with
either an Excel spreadsheet or good old pen and paper by listing
the months in respect to the different spending categories.
Fill in all possible blanks and calculate the average monthly
cost and income. Then students should look to see which months had
over- or under-spending and figure out why.
After doing those calculations, students should begin setting
reasonable spending limits in their expenses column. Then, they
should draw up a savings column for all the extra dollars they cut
off expenses.
But students should be aware of normal discrepancies in their
spending history while drawing up their upcoming budget. For
example, students should take note that the gas bill might increase
in the winter months and that at the beginning of every quarter,
textbooks are purchased and the optional school insurance plan is
billed for.
Students working part-time and seasonally need to take into
consideration that their income is different every month.
Nevertheless, students should try to cut a few dollars or more
off each expenses column, if possible.
Making sure all appliances are off when not in use can save a
good $10 per month. In addition, students should start capping
their spending in the miscellaneous and food expenses if they find
themselves splurging on impulse.
Dorm residents should try to stick to their meal plans as much
as possible. Food is expensive anywhere, so they should not be
shelling out extra money for meals they are already paying for in
their housing plans. If eating at a campus eatery is a must, then
students should try to cut costs by obtaining meal coupons at the
front desk.
Bruins living in apartments should try cooking instead of
ordering in or eating out every night. Bringing snacks, such
as cereal and chips, onto campus can also be an effective way to
save money.
Lastly, it is important that students set consequences for
themselves when they overspend. These “punishments” can
include making up the difference the next month or not eating out
for the next week.
At the end of the day, month, or year, students who budget their
costs are much more aware of how to save money by limiting
unnecessary expenses.
After all, a penny saved is a penny earned.
E-mail Chen at echen@media.ucla.edu if you’re saving
money by reading the Daily Bruin.