|
College is all about preparing for your future. In
addition to preparing for a career, it's important to
build a strong financial future.
Developing a Spending Plan
With a spending plan, you determine how you want to
use every dollar of your income. A spending plan can
help you:
- Set goals.
- Stay on track with your goals. Whatever your goal
- save more, pay off debt or make a major purchase
- your spending plan is the map to you help you reach
it.
- Choose to spend money on the things that matter
to you. With a spending plan, you assign priorities
and budget money accordingly.
- Avoid over spending on things that don't really
matter to you.
- Live within your means.
Here's how to get started:
- Determine income.
- Next, track your spending for a month (include
bills you pay, and money you spend other than bills).
- Then categorize your spending. Categories may include
savings, housing, utilities, transportation, clothing,
entertainment, food - any categories that emerge when
you examine your spending.
- Calculate what you're currently spending in each
category as a percentage of your income.
- Then determine what you want your priorities to
be, and how much of your income you want to direct
to each priority.
- Use this as a guide to adjust your spending.
Use our Budgeting
Worksheet to help you track your spending plan.
Keeping Good Records
The key elements of financial record keeping should
include:
- A spending log that helps you keep track
of the money you spend day-to-day
- A record of all bills paid, including the
payee, date, amount and method of payment
- Income records, such as paycheck stubs
- Tax records, including tax returns, W-2s,
1099s and deductible items such as charitable contributions
- Insurance records, including car, home,
health and life insurance
- Detailed checking account records, either
on paper or online
- Savings & investment account records, including
statements and transaction confirmations
Borrowing Wisely
Borrowing can be a great tool to help you achieve your
goals - for example, buying a house or a car. Learn
more about borrowing wisely.
Building Good Credit
Good credit is important to your financial health.
Learn
more about building good credit.
Saving for Your Future
Whatever your goals - a home, a college education or
a dream vacation - a disciplined savings plan will help
make them happen. Learn
more about saving for your future.
Banking Safely
It's important to take steps to protect yourself at
an ATM, and to protect your financial information and
your identity.
|
