| Students Neglect to Budget for Future |
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By Kristina Dailing, Daily Egyptian, Southern Illinois University (U-WIRE) CARBONDALE, Ill. - Recent research from the Consumer Federation of America proved that one fifth of undergraduates that carry credit cards have a debt of $10,000 or more -- that is money that wasn't planned, budgeted and will have to be repaid. Tim Mocking, an undeclared Southern Illinois University freshman from Decatur, Ill., has credit card bills he is trying to pay off. However, he does not have a problem with bills because he has budgeted enough money to pay off his bills on time. "I have to pay my credit card bills on time because I can't afford to lose the credit," Mocking said. Many college students budget their money well enough to pay off their monthly debts and bills. But many students do not take into consideration budgeting for their future or for emergencies. Taniesha Prentice, an SIU junior in industrial engineering from Chicago, does not have to pay for room and board because she is a resident adviser in Schneider Hall. She has monthly credit card bills that she pays off with her paycheck, but any money leftover she spends on extras for herself. "I do think that it is important to budget, but for me, if I want something, I buy it," Prentice said. Prentice said that she knows she should try to save money in case of an emergency or just so she will have money for later in life. "I probably should save my money, but it is too easy to get into the habit of spending," she said. According to the University of Melbourne Web site, critical thinking is the key to money management. Students must decide before they buy something whether it is a need or a want. When students are trying to budget their money, it is important for them to first, keep track of expenses for a couple of weeks or a month. They should write down all costs in a student diary and at the end of the period divide the costs into categories (groceries, lunch, transportation fares, etc.) and add them up. The results will give a "real life" indication of what is costing the most money. A student will then be able to make some decisions on any expenses that are a 'waste of cash' and can be avoided. Simyra Campbell, an SIU senior in radio-television from Chicago, said that she spends the most money on food and rent. But other than those expenses, she does not have trouble budgeting her money on the extras, such as clothing. "As long as the clothes are cute, I don't care where they are from," Campbell said. Students may have to consider some sacrifices to help "balance the budget." Students can set up time periods when they have a quiet time studying, or with friends -- eat-in, borrow videos from the library on campus, see how cheaply they can make a good meal, limit travel by walking whenever possible, find some free entertainment or try making lunch. One way for students to figure out how much they need to budget is to divide up income and savings into "chunks" by percentage. This will help students meet regular costs and plan for future bills while still using some cash on social and recreational activities. Campbell said that she thinks that it would be useful for every college student to get tips on how to budget their money. Sometimes she spends money on things that are not necessarily economical and she said that she thinks many college students do the same. But by being at college and experiencing money management problems, she is learning how to budget for the future. "If I don't have something, I don't have it," Campbell said. "I am just trying to make it so I can afford those luxury items later." |
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