Budgeting
It is strongly recommended that all families first develop a budget before determining how much in additional loans they want to borrow. Please note that while it takes time to develop an effective budget, maintaining it can reward you greatly.
Tips for Developing a Personal Budget
- Collect at least 3 months worth of pay stubs, other income statements (e.g. disability, social security, unemployment, etc.), bank statements, credit card bills, receipts, and your check register.
- Keep track of all expenses paid for in cash.
- Don't forget about expenses that are paid on a semiannual or annual basis, e.g. auto and homeowners insurance.
- If you don't have 3 months worth of collected income and expense data, use the data that you have available and start putting together a budget that you can improve upon as time goes by.
- Put your budget on a spreadsheet and update it each month. A budget is a tool that works best when it is continuously used and updated.
There are calculators available on various websites that help families develop a budgeting plan to assist in freeing up current income to be used in addressing college costs. Please click on the Calculators link to be directed to such websites and to start your family budget process.
