There’s a right and wrong way for budgeting money in your collegiate years. Budgeting money the wrong way involves living it up today, spending inordinate sums on beer, partying and dining out, on the assumption that you’ll pull down a big salary after graduating. Budgeting money the right way means taking a realistic approach to projecting your income so that you will be able to afford tuition. Read on for a few tips on budgeting money when you are in college.

The first step is to actual plan a budget.  Budgeting money when you are in college is in some ways simpler than budgeting money when you are in the working world. Because you know where you’ll be living, how much food will cost and how much you’ll be paying in tuition, you can figure out how much money you’ll need ahead of time. Also, if you are receiving financial aid, you’ll likely have this figured out before the semester begins. Sit down and chart out all your expenses and your income and find out how much extra money you’ll have. Save it for an emergency while budgeting money for social activities and entertainment. Do this for the whole semester – knowing you aren’t bankrupting yourself will actually make it easier to enjoy yourself!

You also may want to take on a part time job. Budgeting money can help you determine if you need to start working to gain income or if you simply need to cut back on expenses. You may be surprised at how quickly a daily latte, pack of smokes and delivery pizza can cost you each month. By kicking these habits, you may be able to avoid working your way through college.

Another great way to help with budgeting money in college is to bank locally and avoid credit cards. Credit cards are aggressively marketed towards college students, often attached to freebies and other offers. But credit cards can quickly rack up insurmountable debt that lingers long after graduation. Instead of relying on credit cards, open up a checking account at a local branch and use a debit card. This will help you avoid those “emergency situations” that often drive you to break the disciplined habits that you forged through budgeting money.

In addition to budgeting money, it’s also a good idea to develop cost-effective habits. If you can learn how to cook, opt to stay in with a few friends instead of hitting the bars, apply for scholarships and grants and live close to campus, you can save hundreds of dollars each year. It may be difficult to transition to cooking for yourself or riding a bike instead of driving, but these habits may make the difference between making ends meet and being forced to drop out because of overwhelming debt.

Budgeting money correctly is the key to making it through college. Most of us who get into college have the academic ability to pass the tests – but few students are well-versed in money management. Budgeting money can mean the difference between graduating with a degree and a clean balance sheet and dropping out with a huge burden of debt.