Speaker 1: Let's talk about money. I know it's taboo and can be a bit awkward to discuss, but it's important to become familiar with your financial situation, especially as a college student. As a student, your expenses can feel overwhelming between housing, food and school-related costs. How you manage these expenses now can impact your future finances. Becoming more financially literate and creating a workable budget may impact the amount of loans you need to borrow and thus, the length of time and monthly obligation to repay them. So let's break it down step by step and create your budget. Then we'll talk about ways you can save money as a student. You'll need to find the right tools to create your budget. The most widely used software is Microsoft Excel, which has handy budget templates like the one you see here. If you prefer a web-based application, try Google Sheets and their selection of templates, like this one. There are also many free mobile applications available to help you track your spending and create a working budget. Choose the tool that makes the most sense for you. When you've found your preferred tools, it's time to start plugging in some numbers. First, let's add up your income from all your sources. As a student, you may have income from various places, including part-time or full-time employment, work-study programs, or perhaps financial assistance from your family. Make a list of all your sources of monthly income and the amount of money from each. Use your best estimate if the income from a source fluctuates from month to month. Here's a tip. If you get a lump sum payment from one of your sources or if you have money saved up, divide that income throughout the number of months you need it to last. Your next step is determining your expenses. What are your fixed expenses and what may vary month to month? What are your one-time expenses and what recurs every month? Your fixed expenses will likely include housing and utilities like internet and phone services. Perhaps you have a gym membership or a streaming service subscription that costs the same amount every month. Variable expenses might include necessities like groceries, clothing, and leisure activities. You may have expenses that only come up once or twice a year, like tuition, fees, or books in college. It's important to set aside money to plan for the times that your expenses are increased and save money in the event an unexpected expense arises. It's also important to be clear about needs and wants and to separate these expenses as you make your assessment. As an example, housing is a need. A new shirt from your favorite store is a want. Okay, it's time to do the math. Now that you've added up your income and expenses and determined what is a necessity versus a want, let's see where you stand. You'll want to subtract your expenses from your income. If your expenses are less than your income, great. You have money that you can set aside in case of an emergency. If your expenses are higher than your income, you may need to go back and determine where you can cut some of your costs or consider how you might be able to employ some of our money-saving tips. It's time for the final but perhaps most intricate step of the process, creating your college budget. You already have your income and expenses, so let's review your work to make sure your numbers are right and that you haven't left anything out. Then, find places where you might be able to cut or make adjustments to your spending. One rule that some people use when creating a budget is the 50-30-20 rule. This means 50% of your income is allotted to your needs, 30% to your wants, and 20% to save. Savings could include contributions to a 401k or IRA, or adding money to a savings account. Before contributing to a retirement account, it's best to first set funds aside in case of an emergency or unforeseen expense. Now it's important to recognize that this is only one budgeting model, and it may not account for the rising costs of housing and other necessities. It simply may not be possible to save 20% of your monthly income during many periods of your life. So what are some ways to cut your expenses in order to get closer to that 50-30-20 rule? Fortunately, there are some easy and sometimes even fun ways to save money on your everyday expenses. Here are three ways you can save money. Number one, shop used. One of your big college expenses is probably textbooks. While your university likely has its own bookstore, buying books used from online sources can sometimes save you hundreds of dollars. Sites like Chegg, Abe Books, or Amazon can help you find the materials you need at a fraction of the cost. You may even be able to rent your books. Ebooks also tend to be less expensive. Just make sure to use the ISBN to search for your books so you know you have the correct edition. Then, when you're done with your books, you can use the same sites to sell them to another student, likely making back more of the money you spent than you would selling your used book to your university bookstore. What about clothing or household goods? Shopping at thrift stores can not only save you money, but it is also more environmentally friendly. Your local thrift store is likely stocked full of clothes, shoes, and even things like cookware. You can also search online marketplaces for deals on the items you need. You never know what you'll find when you start thrifting. Number two, don't forget about student discounts. From car insurance and computers to museums and theaters, there are several businesses and organizations that offer student discounts on things you need, things you want, and even some exciting experiences. Your college or university may have a list of places near you that offer student discounts. Or if you're not sure, it never hurts to ask. Number three, minimize eating out. I know going to your favorite restaurant is something we all enjoy, or grabbing that bagel and coffee on your way to class might be an easier option. But when you're working with a monthly budget, all of those things add up. Buying groceries and meal planning and prepping can save you a lot of money every month, and you can explore fun recipes and meal ideas. Building a workable budget as a student can be a challenge, and sometimes it's a little scary. But remember, living within a budget can not only help you to reduce stress in your present, but it also builds financial success in your future.