Income
First, take a look at what’s coming in. Ignore your savings or any investments for now – they exist to build upon, or as a cushion for the future, should you experience an unexpected shortfall. What counts as income?
- Grants – Money you don’t have to repay, such as a Pell Grant or a TAP (tuition assistance program)
- Paychecks – From full- or part-time employment or work-study programs
- Parents – Or generous family members offering regular financial support
- Sales – If you don't need your car while you're in school, your athletic or electronic equipment, sell it!
- Scholarships – Funds awarded for tuition or other expenses
- Student loans – Money that will see you through school expenses, like tuition and books, but will have to paid back, plus interest.
- Stipends – Small amounts of money paid to keep up with expenses. Financial aid programs, such as your state’s Educational Opportunity Program, may pay stipends. So might internships.
Now consider your anticipated cash flow. How long do you expect any of these income streams to continue? Income from a job may be temporary – during the school year or the summer. A scholarship might be for one year – is it renewable? Remember that certain grants may be dropped if you fall below the minimum GPA or the program is discontinued.
Average it out. You could total your income and divide by 12 to view your monthly income picture. However, some of your money may not be available at certain times of year. You may see a bulge in the summer if you have a job you can count on, or your income may dip during that time if you’re getting more money during the school year. Because of these fluctuations, align your budget along time periods, such as the academic term.