Why is attending college in India so expensive?
Attending college in India can prove to be quite expensive, especially if you come from a middle-class family. Unlike school fees, most college fees take a steep rise every successive year. Apart from the education fees, parents are supposed to pay for the hostel and accommodation as well, in case their child decides to be a hotelier. Everyday demands of a college student are also more than that of a school student. In many cases, children have to move out of their city to attend college and that adds transportation costs to the budget. All of these financial requirements can be very difficult for parents from the lower middle class to afford. Fortunately, there are a few budgeting strategies and careful financial choices made by the parents early on that can assist children in budgeting and planning for future education.
A lot of families have to take out loans for getting a degree in a prestigious college that demands high fees. Not getting an education loan easily often makes it difficult for families to make ends meet and result in bigger problems. Here comes budget planning or budgeting into play. It aids students in debt management by encouraging prudent financial planning and careful economic choices. Adults can use budgeting to discover and limit needless expenditures that would otherwise go unnoticed. A smart college student budget also accounts for money for plans and crises, preventing students from accumulating loans or credit card debt in the event of these occurrences.
Why is planning a Budget important?
But why is budgeting the solution to this problem? Why is it important in the current scenario of finances? Let’s look at an example. Imagine a weight scale machine that greengrocers use to weigh the accurate amount of vegetables while selling them. If you look at the working of a weight scale machine, you will realise that they try to balance the weight of the vegetable/fruits to that of a particular amount to make the machine scale balance. That is exactly how budgeting your finances also works. In simple words, it implies balancing your expenses with your income. People struggle because often they don’t balance and spend more than they earn. Many people are often unaware that they spend more than they earn and are accumulating debt, as a result, year after year.
A budget plan for college students can help them make better financial decisions. It can educate budgeters on how they can keep their budget under control by planning and monitoring their income and expenditure. Essentially for a college student budget, one can assist students in staying out of debt and making financial plans for the future. These techniques are usually well worth the time and effort they demand.
Another thing that can help to organise your expenses beforehand. One way to approach that is by dividing your expenses into two categories: fixed and variable. Before starting to allot your expenditure into categories, you need to have a list of your monthly expenses. This can also mean having a general idea about how you are going to spend money in a month. Once you have a sense of that, it’s time to categorize which one comes under what. Fixed bills consist of expenditures that you can’t afford to avoid at any cost, this should include all the necessary spending like paying your rent, electricity bills, debt repayment etc. Variable expenses are the ones that you can consider a little flexible and usually include your ‘wants’ instead of ‘needs’ like restaurant bills, vacation, and entertainment spending. If your income drops, you can not compromise with paying rent or school fees for your children, however, you are always free to postpone a vacation, or cut back on your takeaway spending without too much of a negative impact. This is the difference between the two since you’ll almost certainly have to pay for rent/room and board, transportation, and insurance at some point.
What are the challenges faced while Budgeting?
However, like everything else, budgeting also comes with its share of difficulties and challenges. A lot of people easily set a budgeting plan, but when it comes to maintaining your expenses accordingly, they realise that it’s not a cakewalk. A thoughtful budgeter should always realise the difference between his wants and needs and make financial plans accordingly. Sticking to a budget requires a great deal of self-control. Moreover, what plays an important role in a college student’s budget are two things: precise revenue and expenses estimates. Drop-in income and unexpected expenses, on the other hand, are common occurrences that necessitate budget modifications.
How do we tackle these problems?
Now that you have a sense of where the difficulty lies once you start budgeting, we can start working on the challenges one by one. Students can stay on budget by keeping track of their expenses regularly, but it takes some structure and self-discipline to keep track of everything. You might’ve seen someone from the older generation making records of their weekly or monthly expenses. Needless to say, traditional budgeting approaches are outdated in today’s world and we want everything to get done easily and quickly. Fortunately, with the advancement in technology in the current world, everything has become a lot easier. There are several software applications and programs that make life easier. Their work includes keeping a track of the expenditure in a given time. Some examples of such applications are YouNeedABudget, PocketGuard, and Mint.
There are some clear-cut ways you can cut down on your expenses in college. Such a list would include taking advantage of college amenities, if possible, hustling side by side or going the extra mile by getting a part-time job. Besides, students should also be aware of the various student discount policies started by the government to make life easier for students in a financial crisis. Student discounts are available at some entertainment venues and businesses. Students can save money by taking advantage of these incentives. In addition, students can work part-time on campus or at connected organisations that promote the public good through federal work-study programmes. Based on the student’s FAFSA information, the federal government evaluates work-study eligibility and pays half of the student’s wage.
The final step when you’re budgeting your finances is to examine all of the data acquired and double-check that the figures add up. This step is crucial because it tells you if you have enough money coming in to meet all of your costs each day. Realising you can’t afford your current lifestyle or your desired life implies that it’s time for taking some action to make changes. To achieve that, you can do several things by thinking about ways to generate more money, such as working longer hours. At the same time, minimizing loss is always beneficial. Hence, you can also explore strategies to save money. This may entail lowering your variable expenses, such as cancelling streaming subscriptions that you don’t utilise regularly. Some fixed expenses may need to be adjusted to account for fluctuating charges. To save money at the grocery store, clip discount coupons in advance and choose store-brand items over name-brand. If you’re seeking to relocate, look for a less expensive apartment.
Conversations are underrated. If you want to get a solution to a problem, just simply communicating with your family or friends about it can give you unexpected results. Thus, students should start conversations about money by talking about how to manage college fees, and then use that as an opportunity to talk about money with their families. They might want to consider having financial check-ins with their family after each semester and throughout each school break. This method of financial communication can become commonplace if approached from a mature, realistic perspective.
In conclusion, budgeting ensures that you always have enough money for the things you need and the things that are essential to you since it helps you to set a spending plan for your money. It’s essential to stay within your budget now that you’ve put in the effort to create one. Following your budget while in college will help you pay off debt and graduate with strong financial habits that will aid you in achieving your long-term goals. Keep yourself accountable by setting up daily reminders to enter costs into your budget. Set alerts for when you near your spending limit for different expense categories if you elect to utilise a budgeting tool. You can also set up transaction alerts with your bank or credit union to receive notifications when you reach a spending restriction. If your income or an expense fluctuates, make sure to alter your budget accordingly.
