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Numerous national surveys indicate that the majority of college students cite financial difficulties as the number one reason for dropping out of school. One such survey, reported in the Washington Post by Jenna Johnson, stated that “when students decided to drop out, 70 percent said they did so because they needed to work.”
Considering the dismal economic state of our union and the fact that the 2010-2011 school year is ready to begin, it is increasingly obvious that it is time for all of us to tighten our belts and take a long, hard look at our spending habits. I’m guessing that no one wants to be just another statistic.
For many of you, college may be the first experience you have of managing your own finances. Unfortunately, students are often given a large financial aid check all at once. This is the equivalent of being paid twice a year. Handling this money effectively and responsibly is difficult for even the most frugal of penny-pinchers.
Whatever the situation, college students are always in need of creative ways to get by financially in order to one day graduate; hopefully without too much debt, if any.
When seeking financial help, from books to fiscal planners, all sources begin with the same mantra: Create a budget. This does not have to be a daunting task. Simply add up all of your income sources and then add up your monthly expenses to see if there is any money left over. Then look carefully to see where you can cut costs. There will always be an unexpected expenditure on the horizon, from a flat tire to an organization fee for something that you were hoping to join. If you do have a little money left over in your budget, put that money aside in order to get in the practice of saving something for the unexpected.
A difficult task for most of us is determining what is considered an essential item versus what is considered a non-essential item. Essentials are things you cannot live without, such as housing, tuition, books, and food. The easiest way to tell if it’s a necessity is to ask yourself, “Do I really need this?” If the answer is no, then, well, it’s probably not an essential item. The non-essential items are a little trickier. No one wants to go without them completely. My theory is that if you cut back, not cut out, you will be more likely to stick to your budget while still being able to enjoy some of your personal pleasures along the way. It is best to be aware of how quickly these items add up: For example, a bottle of Coke generally costs about $1.50.
Take that, multiply it by twelve, and you will begin to realize how spending on non-essential items can rapidly add up to big bucks. Take cigarettes, for example. At roughly a pack a day, that adds up to $1,440 a year, which will almost pay for a semester of school. Just cutting this number in half can greatly improve the status of your financial state and possibly even pay for necessities such as school books, housing or tuition.
Also explore the Georgia State Perks program for discounts on everything from Six Flags tickets to auto insurance: gsu.edu/images/HR/Panther_PERQs_Website.pdf
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