College is filled with many new experiences, meeting new people, late night study sessions, and unfortunately, unexpected expenses. Whether it’s an expensive textbook, a car repair, or an unforeseen medical expense, life can get expensive quickly. As students we have so many important things to worry about, and money can be one of them. Here’s a guide on how to navigate these unexpected costs to give you peace of mind and not derail your budget.
- Understanding and Creating a Budget
Unexpected expenses or not, you want to have a clear idea of how you are allocating your money and making sure you can pay for your current expenses. You want to have a budget that includes any income you may have, (job income, scholarships, family support, etc.) and all expenses you incur on a monthly basis. Include fixed expenses, such as rent, a car payment, or tuition, as well as variable expenses that can vary each time, such as groceries or entertainment. Keeping track and setting goals for yourself can help you plan for the future and identify where you are potentially spending too much. You can always schedule an appointment with us here at Powercat Financial and we’d love to help!
- Building an Emergency Fund
An emergency fund is your financial safety net. Emergency funds are meant to cover your planned expenses in the event an emergency occurs. Ideally, your emergency fund should cover 3-6 months of your living expenses, enough to keep you afloat while you navigate the situation. Start small- set aside a small amount each month to work towards your goal. Even a few hundred dollars can make a difference in an emergency, some money is always better than nothing!
- Plan For the Unexpected
While sometimes expenses can be completely unexpected- some costs you are able to roughly plan for. Things like lab fees or textbooks, may be unexpected but you can research potential costs to better plan for things, even if you don’t know exact amounts. Similarly with your living arrangement or car, if you regularly have unexpected maintenance, consider allocating a part of your budget to help cover these costs when they arise.
- Use Student Discounts and Resources
Take full advantage of student discounts and aid resources! Many businesses and online services provide student discounts, and utilizing these discounts can help reduce everyday expenses, allowing you to allocate more money towards emergency savings. As well as discounts, utilize resources here on campus! Financial Aid, CAPS (on-campus mental health services), Powercat Financial and more are all here to help provide support to you in various ways.
- Communicate
If you find yourself in tight spot financially, consider reaching out to your friends, family, or other support system. They may be able to provide financial support, but also may be able to provide advice, resources, or other ways to help that aren’t monetary. Having a network of people to help physically during a crisis is important, but having emotional support during troubled times is equally important!
Unexpected expenses are a part of college and a part of life! By creating a budget, establishing an emergency fund, and taking advantage of resources available to you, these challenges can be much easier to navigate. Remember that it is ok to ask for help- college is a time for learning, including your finances. As long as you stay on top of your responsibilities and are proactive in your financial decisions, you’ll be better prepared for unexpected challenges thrown your way!
Shayna Vlock
Peer Counselor I
Powercat Financial
