Column: Making the most of B-Town on a budget

Question
Help! I am very lucky that my parents are helping me with pay for my tuition, my room and board and even extra spending. I work during the summers but not much during the school year and have a really hard time budgeting the money I have to spend. What are some tips on budgeting that I can learn now before entering the real world?

Answer
It’s true. Everyone has to learn how to budget, and it isn’t easy. Unfortunately, most of us don’t have cash to waste on a regular basis and are trying to get by with a small cash flow.

The best thing you can do in college is work with your resources and learn how to spend reasonably so that when you are running low, have a new salary or are trying to save, you know how to do it.

The first thing you must do is commit to living on a budget. Mom and dad may be helping now, but that won’t always be the case, and budgeting is the only way to stay out of trouble. The first step is adopting will power. You don’t need to buy everything you see or always treat yourself. A new outfit, a concert and a nice dinner out are all nice things, but you have to learn to say yes less often than you say no. Pick one big treat a month and then save so that you don’t end up being broke.

Think of all the extra purchases you bought last week that could have been saved: a trip to the vending machine, a new blouse, late-night eating? Learning how to say no will not only help you from being broke, it will build up your will power and make you a much stronger and more disciplined person.

Here are a few tips on how to be more responsible when working with budgeting funds.
1. Stick to a plan. Make a budget for several necessities and stick to it. If your parents give you $200, decide how much of the money will go to food, activities, groceries, savings, etc. before you start to spend. For example, say you will only spend $40 on eating out every week. Once you commit to this range, stick to it and plan early so that you get to go out for the most enjoyable nights and you have time and resources to cook for yourself when the extra funds are not available. Getting familiar with a budget, doing the math and enforcing discipline is one of the best lessons you can learn in college.

2. Always have backup money. I was taught to never, ever go without $20 in my pocket. If I were ever stuck or in an emergency, I would not need to worry about my safety. Having the will power to never spend that last $20 and always keep it for emergency situations helped me develop a much better sense of control and the ability to say no, which is the first step to success.

3. Find a mentor. There are too many students who become broke in college, but there are many students who can be a resource to you who have mastered the art of budgeting. Find someone in a situation similar to your own and ask them for advice. Look at the way they budget, what they consider “necessities” and follow the leader. You can always learn how to say no together.

­— espitzer@indiana.edu

This question was submitted to Eshley by a reader. To submit your own question, email her or arts@idsnews.com.