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Budgeting and Saving (While U Are in School)

Keeping current with financial education takes practice — and here at UMe, we totally believe U can master it! Knowing even just simple things about money is a small but important step. Budgeting is all about being mindful of your spending and making smart financial decisions. 

It’s important to maintain good financial habits and to start early — and we are here to help U get a jump start. Check out the topics below (basics, budgeting, and smart saving) or click below to your preferred area of interest!

I WANT TO KNOW ABOUT:

MONEY BASICS | BUDGETING TIPS | SAVE FOR PROM

 

WHAT ARE MONEY BASICS THAT I NEED TO KNOW?

  1. It’s never too early — or too late — to start learning about personal finance. 
  2. Saving money is important! So is knowing how to save in the best way possible, and a savings account is a secure way to keep and grow your money safely.
  3. Plan it out! If you want to make a big purchase (like a car, tuition, or vacation) having a budget plan can help you save enough and also not overspend.
  4. Be careful borrowing. 
    1. Loans and credit cards can benefit you, but there can also be pretty big consequences if you don’t manage them properly. Understanding how they work can help you keep up with payments in the smartest way possible!
    2. If you are planning to take out a student loan or credit card to help with college expenses like tuition, definitely learn about credit scores and how they work!
  5. Try your best and keep going! Patience and consistency with your saving and budget habits will keep you on your way to a bright and healthy financial future!

 

WHAT ARE SOME BUDGETING TIPS FOR ME?

  1. Track your transactions: Keep track of all your expenses, even small purchases like snacks and drinks. This will help you see where your money is going and quickly spot areas where you can cut back.
  2. Prioritize your expenses: Make a list of your expenses in order of importance, then assign amounts accordingly. For example, if you need to buy books for school, prioritize that entire expense over buying a new ‘fit.
  3. Look for ways to save money: Find new ways to save on everyday expenses, such as trying generic brands instead of name brands, using coupons and discount codes, and shopping during a sale.
  4. Avoid unnecessary expenses: Avoid impulse purchases and unnecessary expenses, such as buying items you don’t need or going out to eat frequently.
  5. Plan your meals: Planning your dishes in advance can help you save a surprising amount of money on this necessity. You can also bring your lunch to school instead of buying food on campus. Doing this even 2-3 times a week makes a difference!
  6. Use free resources: There are plenty of free resources available online or in your community that can help you save money. For example, you can borrow books from the library instead of buying them. Or check out if a museum has a free entry day before buying tickets!
  7. Be credit card smart: It’s too easy to overspend with a credit card, so it’s best to avoid using them for just any purchase. Use credit wisely, and know that it’s a tool to build your credit and for emergencies, rather than treating it like extra cash (it’s not extra cash). It’s super important to make sure to pay off the balance — in full — each month to avoid amassing debt.
  8. Save for emergencies: It’s so important to have an emergency fund, in case unexpected expenses arise. Try to set aside a portion of your income each month into a savings account. And don’t skip doing it because you feel that the amount you can save is too small. That’s not a thing! Saving something is always better than nothing!
  9. Use a budgeting app: There are many helpful budgeting apps available that can help you track your spending, set savings goals, and create a budget.

 

HOW DO I BUDGET?

EXAMPLE: BUDGETING FOR PROM

Saving for prom can be a useful exercise for you to develop great financial habits. Here are some tips on how ton save for prom:

  1. Create a budget: Once you have a budget, you can determine how much you need to save. Include estimating the cost of prom tickets, transportation (even if you’re not hiring a limo, consider gas and parking!), clothing, and any other expenses you know of. The total of all these costs is your budget! 
  2. Use a savings account: Here at UMe, we have really great savings account options for U. We make it easy to open one for you to make deposits for your prom budget. This will help keep your money safe — and — you earn interest on your savings, making your money work for you!
  3. Save money on clothing: Instead of buying a brand-new dress or suit, consider borrowing one from a rental service such as Rent-The-Runway or The Black Tux. You can even borrow from a friend or buy a gently used one from a second-hand store. Burbank has so many great shops (like It’s A Wrap!) that gets wardrobe from the film and tv productions in town! This can help save U a lot of money.
  4. Save early: The earlier U start saving, the more time U have to reach your goal. So, start saving as soon as possible, even if it’s just a small amount each week because every little bit adds up!
  5. Cut out unnecessary expenses: Anything you spend money on that is a ‘nice to have’ and not a ‘need to have’ could be taken away from your budget. These funds can be put towards your prom savings, and getting closer to your budget goal is gonna help you feel accomplished and successful!
  6. Find a part-time job: Consider finding a part-time job to earn extra money for prom. This will look great on your college transcripts, build up your resume, and who doesn’t love making their own money?! If you’re social media savvy, offer your services to a local retailer to help them boost their business online.

Saving money takes practice and patience. By learning good money habits and developing your financial responsibilities, U will be set up for a successful financial future. Just like how it may take a bit of time and practice to get into the habit of budgeting, it’s a valuable skill that will benefit you for many years to come. Keep your goals in mind and stay focused on the long-term benefits of being smart about your money. 

Check out our student banking page for financial options just for U!

Helping is our favorite, and seriously, it’s why we’re here. So, if you need additional help or have specific questions, just send us an email or give us a call! We’re here to help U get ahead and stay financially strong.

 

Disclaimer: U matter to Me (all of us) at UMe — and that’s why we do our best to deliver helpful information on our blog. Please note the following: (1) UMe Credit Union works hard to make certain that the information we post here is as accurate as humanly possible. But as you know, information can change and evolve quickly. While we try to update the blog on a regular basis, the content of some older posts may not be correct or up-to-date. (2) Some destinations on the World Wide Web that we link you to will exist on external websites. UMe Credit Union does not officially endorse any connected sites, nor do/did we compensate or get compensated by any entities to be featured in our posts (unless otherwise noted). (3) Everyone’s situation is unique and we advise you to consult with our personal bankers or your finance, tax, or legal professional for advice individualized to you!