College Student Budgeting…
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So Luke worked 16 days over the break and is going back to school with $4500 in his account. He is also working about 10 hours a week on campus, making $150 - $200 or so per week. I am trying to work on a budget with him so that he starts getting that habit going now.
My suggestion to him is:
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Put $800 aside as an emergency reserve to be used for car repair and maintenance. It can also be applied towards car replacement.
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Set aside $1K for books and online fees for class work.
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$1200 to be applied towards his student loan principal (we’re covering the interest). I’m suggesting he set up automatic monthly payments so it has a positive impact on his credit score.
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$600 spending cash on hand/reserve for clothes, trips, whatever…above and beyond his weekly spending.
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$500 to open a retirement account.
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$400 savings account.
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Use $100 per week from his campus job for day to day (remember that the school provides 3 hots and a cot). Split the remainder between savings and retirement account.
Thoughts? Anything you would change? Remember that he will be getting cash from Mom & Dad as needed and this is to get him through May. In June he will be socking in more hours and adding more to the car fund, savings, and tuition.
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