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 Calculator 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.
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