A Cure for the Budgeting Blues

There are so many choices when it comes to colleges, from deciding if a Christian school is right for you to choosing a major to finding housing to decorating your dorm room. In between praying about all of the above, filling out the paperwork and actually executing the plan one step at a time, there's still another very important element that's essential to consider.

Yes, it's indeed the looming cloud of finances, more specifically, budgeting one's money for the very first time outside of Mom and Dad's comfy nest. It certainly can be a scary scenario, especially with the temptations of wanting to buy top-notch items and going out on the town. Thankfully, CollegeBound combed the country for some experts who are willing to lend a hand.

"Differentiate your spending between wants and needs," suggests William W. Dean, director of admissions for Judson College in suburban Chicagoland. "Ask yourself before spending if this is something you want or really need. Be honest with yourself. It's really OK not to have the latest and greatest things on the market."

From the moment one steps foot out of the house and into the freedom of campus, he'll be hit from left and right with choices and challenges—places to go, people to see, restaurants to eat at, movies to view, shopping malls to conquer, groceries to buy, and (perhaps even more appropriate to the purpose at hand) the need for textbooks and school supplies. Without having a plan and a vision set up on paper, the options can look like a tangled web that not only will drive a student up the wall but also send his or her bank book straight into overdrive.

"Create a budget [listing] all income, as well as your expenses," continues Dean. "Income can come from your job, financial aid [and] parents… Track your spending for a period of time to see where your money is going. Typically, your spending will decrease if you can visualize where you are spending a lot of money, whether it is for CDs or coffee. These are fun things that help relieve the stress of life. However, students need to learn to live within reason and draw boundaries on how much they will spend for entertainment and food."

One particular payment plan a lot of students turn to is a wallet full of credit cards, which can be a blessing and a curse at the same time. While it can be a lifeline during lean times at the supermarket, it also can be a crutch at Best Buy when U2, Jars of Clay and Casting Crowns are all releasing CDs on the same day. A responsible game plan prior to applying for a credit card can make for much more effective and responsible use once they arrive in the mail.

"I would recommend that if students are going to use a credit card, they should use it wisely and be able to pay off the balance at the time a payment is due," said Donald Dugas, vice president of business administration at Alaska Bible College. "It's a matter of personal discipline, especially when a student has limited income. That's why it's so important to have a budget established and to follow up with discipline. A lot of people get into trouble by breaking out of that good habit, though those who stick with the plan wind up with good credit ratings, which go a long way when it's time to apply for consumer loans or home mortgages."

Though that type of thinking may be a bit further down the road than starting off the school year with a bang, such conscientious behavior will lead to smooth sailing for the next four years and beyond. While we're on the subject of responsibility, another option to keep the cash flowing is to get a job, whether on or off campus. Some spending money will result from this process, along with opportunities for advancement and enjoyment.

"Getting a job is wonderful because a lot of students need extra money, whether for books, helping their parents or just to cover incidentals," said Ozzie Ingram, associate vice president for administrative affairs at Dallas Baptist University. "Working can relieve a bit of those burdens, from taking care of gas to a trip to the movies, just like an allowance did for students in high school."

There are several other ways to cut down on costs and pinch pennies, such as in the social spectrum. Look for alternative on-campus activities, such as renting movies, watching a ballgame or taking a trip to the athletic field for intramural interaction. Plus, eating out alone is never as fun as throwing a pizza party (where the costs are split, of course), cooking in groups or carpooling when taking an excursion.

"Most campus-sponsored activities are generally free, and there's no travel involved," said Paul Johnston, director of financial aid at Taylor University in Fort Wayne, Indiana. "If students have a meal plan, I'd suggest they utilize it rather than heading off campus.

Working also can be helpful, and we encourage students to stay on campus. The wages may not be the best, but there's no travel cost—and there's lots of flexibility. Understanding how the dollars flow will help improve one's understanding of financial responsibility."