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Budgeting 101

CBD College Financial Literacy

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Learning Objectives

  • Discover where your money is really going
  • Convert as many expenses as possible into “fixed” expenses
  • Make a realistic budget
  • Lear how to reduce unnecessary spending

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Budgeting Benefits

  • Money available to pay your bills
  • Helps establish good credit history via a record of paying bills on time
  • Lowers stress over finances
  • Allows you to better focus on your classes

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Part 1: Where does money go?

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Tracking Your Spending

  • Record all purchases for a whole month.
    • Use an expenses app or notes on your phone
      • Mint
      • Check your online banking app!
    • Keep receipts in an envelope
    • Use a notebook
    • Utilize the “Spending Detective Worksheet” in this module to help you track your spending.

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Fixed Vs. Variable Expenses

  • Fixed:
    • Housing
    • Tuition
    • Car Insurance
    • Cell Phone
    • Loan Payments

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  • Variable:
    • Gas/transportation
    • Food
    • Entertainment

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Fixed Vs. Variable Expenses

  • Set spending caps for variable expenses!
    • Gas/Transportation: Limit or consolidate trips.
    • Food: Prepare food at home and limit restaurants/take out.
    • Entertainment: Prioritize your favorite activities.

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Step 1: Identifying Monthly Income

  • Income includes:
    • Income from employment
    • Financial aid funds (scholarships, grants, loans)
    • Family contributions

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Step 2: Identifying Monthly Expenses

  • Education related: Tuition/fees, supplies, transportation…etc.
  • Life related: Rent, child care, clothing, insurance…etc.

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Comparing Income and Expenses

  • Do you have money left over at the end of the month?
    • Place in savings!
    • Use the “Savings Goal Worksheet” in this module to help you save smarter.

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  • More expenses than money?
    • Get back on track!

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The “Earn More” Option

  • Pro: More income to help with expenses.
  • Con: Decreases amount of time available for school.

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  • Job possibilities
    • Work Study: Works with student’s class schedule, but must qualify.
    • Off Campus: Less flexibility, but available to most students.

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The “Spend Less” Option

  • Cut non-essential expenses!
    • Cancel subscriptions
    • Reduce eating out
    • Shop with a list
    • Restrict online shopping…etc.

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    • Use the “Needs vs. Wants Worksheet” in this moduleto identify areas where you may be able to reduce spending!

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Questions? Contact us!

CBD College Financial Aid Office

Email: fa@cbd.edu

Phone:213-427-2200

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