Many students financially overextend themselves while in college, so that managing their debt becomes a full-time commitment. Not only are normal bills (tuition, books, rent, utilities, insurance) piling up, all with different payment dates, but credit cards, car expenses and other debts must also be paid. Financial aid can be a bridge to help meet your educational expenses, but it may not cover all of your expenses. This information is presented to help you make the financial transition from living at home to handling your finances at SIUC.

One of the most effective ways to manage your money is to develop a realistic budget, put it in writing and stick to it. A budget may seem unnecessary, but it is very easy for a person just entering school to "live beyond their means". In fact, the key is to live "just below your means". Your budget can help you keep track of the money you earn and/or receive in financial aid and how you spend it.

Using a budget makes it easier to stay within your financial guidelines. Budgeting your money will allow you to:

• Make sure that your income is sufficient to meet all expenses
• Identify areas where you can reduce spending and increase savings
• Reduce your reliance on financial aid, especially student loans

To prepare a budget, estimate your income and the expenses you expect to incur. Try keeping track of your daily expenses for a month. You might be surprised at how much you actually spend! You may have to include expenses that you did not have before starting at SIUC. You need to include:

• Housing (rent and utilities)
• Transportation (car expenses, maintenance, bus or train fares)
• Food and entertainment
• Savings
• Credit card payments

THINGS YOU CAN DO TO STAY WITHIN YOUR BUDGET

• Eat before you go grocery shopping and only go once a week.
• Pack a lunch to eat at school.
• Eat your leftovers!
• Don't be reluctant to enjoy a buffet.
• If you live in a residence hall, minimize the meals you replace by eating out (you've already paid for the meals).
• Set a timer and limit the number of long distance calls you make.
• Purchase a pre-paid long distance calling card.
• Look for free entertainment around campus (concerts, lectures).
• Contribute to a savings account to be used for emergencies.

Many students find it helpful to open a checking account to help keep track of their money. By being aware of the balance, you can know when you are spending beyond your budget. Shop around to find the best deal for a checking account and use it. Many students do not use checks to pay for expenses, such as books, preferring to use credit cards.

Students are tempted to use credit cards to solve all financial difficulties. Remember: credit cards are like loans. You are using borrowed money that you will have to pay back. Before you borrow using your credit card, consider how much your borrowing will cost you. These are legal obligations that must be repaid. You must repay both the amount you borrow (the principal) and the amount charged by the lender loaning you the funds (the interest). Think carefully and borrow only what you need. Consider using your check register to record each credit card purchase so that you can monitor how much you are borrowing.

Making the minimum payment may be convenient if it is all that you can afford at the time. However, if you continue to make the minimum payment, you will pay much more in interest charges. For example, if you have an 18.5% interest rate card, it will take you more than 11 years to pay off a debt of $2,000. During that time, you will pay interest charges of over $1,900 (interest will almost double the amount that you pay for the original purchase)!

Trying to decide between a card with no annual fee and an 18% interest rate and another with a $40 annual fee and an 8.9% interest rate is not as simple as it may appear. Just because the first card has no annual fee, does not mean that it will be free for you. The card may have other fees, such as cash advance, late payment or over-limit fees, that may exceed the annual fee of other cards.

While it may seem tempting to get a cash advance from an ATM machine, be aware that many credit cards charge a higher interest rate on cash advances and that the interest begins immediately. So, the cash advance may be more expensive than you think.

Be careful who you give your credit card number to; don't write it on checks or give it over the phone to anyone that you did not call. Also, make sure you save your receipts; don't throw them in the garbage without tearing them up first. If you lose your credit card, report it IMMEDIATELY. The quicker you report the loss, the less that you may be liable for purchases made with the card.

Over 5,400 students work on campus each year to help pay for their education. There are several good reasons for choosing work on campus. In addition to earnings, students often gain valuable experience in their area of academic interest. Studies show that students who work up to 20 hours a week while in college tend to have higher grade point averages and are more likely to graduate than non-working students.

SIUC student employees usually work between 10 to 20 hours per week. Many students find that student employment helps them manage their money better because it can provide a reliable, consistent cash flow. To apply for on-campus student employment, you should have a processed Free Application for Federal Student Aid (FAFSA) on file in the Financial Aid Office. The financial aid application will indicate whether your wages should be paid from federal, state or local funds. Even though you may not qualify for financial aid, you may still work on campus. You should come to the Financial Aid Office to obtain a Student Employment Referral, and review jobs posted under Student Employment on this web site to select the positions for which you would like to interview.