How to Set Up a College Budget when Funds Are Limited

Many college students have already headed back for the new school year. However the difference this school year is that many families are still living in a recession. So the solution for your college student is to set up a budget with them. You don't want to set up a budget for them. Below you will find some tips and suggestions on how you can go about helping your college student set up the right budget for them.

What are you working with

First you will want to figure out how much money you are going to be working with on a monthly basis. For example if your child has a part time job like many college students they will need to figure out how much money they will be making on a weekly basis. Sit down and write up the numbers. When you know the amount of money you have each month, it will be easier to set up a workable budget.

Use coupons

There is nothing wrong with college students using coupons. Mom can even help them out, by clipping the coupons for them, and sending them to their college student. Although it would be better if they learned how to clip coupons themselves. Show them how to look for weekly food deals using the markets in their area. Most college students need to have plenty of snacks on hand, but they don't need to spend a lot of money.

Start a savings

You can also help your college student to set up a savings account. Each week they can put a certain amount of money into their savings. Even if it is just ten dollars a week, they will learn to start building up for those rainy days. This way when something happens and they need a little extra money they will already have something in savings to work with.

Stay away from credit

One of the biggest mistakes that many college students make is that they instantly apply for credit. This automatically puts you in way over your head in most cases. Especially since we are currently living in such a bad economy. It is much better to live by paying cash, until you have enough saved up to start building your credit. For example once you have enough money in savings get your first credit card. This way when you start using your card you can pay off the balance before any serious problems arise.