Budgeting for the College Student

One of the concepts that I touched upon during our webinar a few weeks ago was a budget plan for the college student. I want to reiterate these concepts and add some more details. Every college student should be adhering to the plan below:

1. Save $500. This should be the first thing that you do when you enter college. This is an emergency fund that you keep in a separate account that isn’t touched unless an emergency happens. How you define an emergency is open, but be aware that choosing to go out to eat with your friends vs. eating ramen noodles at home doesn’t constitute as an emergency.

2. Save ahead for your tuition/books. After you’ve finished step 1, ¬†you should be saving for next semester’s tuition/books ahead of time. I know this may sound weird or crazy to a lot of you, but even if that requires taking off for a semester to save money for that expense you should.

3. Pay off credit cards. This may sound really simple to do, however the average college student carries a credit card balance of approximately $700. Your goal is to graduate college with ZERO credit card debt. (For more information on how to pay off your debts, we cover the “debt snowball” system in our eBook. If you haven’t picked up a copy, don’t worry, it’s free).

Adam Taufique

Adam Taufique is a founding member of Qur'an Weekly and Debt Free Muslims. He is a regular khateeb in his community and has served in Masjids from being a weekend school teacher to youth coordinator. You can follow him on Google+ or on Twitter @adamtaufique.

One Comment

  1. dana, arwa, sarah
    November 12, 2013

    we think that this article was very helpful and it gave us an idea on how to be prepared for college

    Reply

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