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Powercat Financial

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Importance of a Financial Plan

With any event, it is important to have a map of where you are and where you are going. Managing your finances is no different. Not only is it responsible to have a financial plan, it also comes with many benefits and few costs. I would like to focus on the importance of having a financial plan upon entering college and the urgency of creating one if you are student who does not currently have one.

When you step onto campus for the first semester of your freshman year, hopefully you have some savings from part time jobs in high school, graduation gifts, scholarships, some support from your parents, education funds, and maybe a few student loans to help you have enough cash to make it through your first year of school. However, as you progress through school, the tuition bills begin to add up, the scholarship money tends to get smaller for upperclassmen, and mom and dad may feel the need to teach you financial responsibility by letting you support yourself.

Without a financial plan, it is very difficult to know if you have sufficient funding and it is very convenient to spend money freely on eating out, going to concerts or movies, and other recreational events. Also, it is difficult to foresee upcoming problems with your finances if you neglect to take the time to consider what your financial future will look like. In the instance of not looking ahead, when problems do show up, they can be very hard to overcome. You may have used up all of your savings, scholarship money, and student loan money that was intended to last you through the entire semester before you realize you have a problem. In order to have the cash to pay the bills to get through the semester you might have to take on a job or even a second job if you already had one. Another option is to accept more student loan money, which can be difficult and can set you back upon graduation. Most students would agree, working while going to school and trying to juggle a social life can be extremely stressful. As you can see, not properly allocating your money has many adverse effects that go beyond not having enough cash. You can lose your free time, struggle to do well in your classes, and add unnecessary stress to your life all by not having a financial plan.

However, there is good news. With a few hours of time and some number crunching, you can be on the road to responsibility and financial success.  With a financial plan there is potential to save yourself time, money, and stress. With all the benefits and such little cost, it seems silly not to have a financial plan.

Developing a financial plan is simple. First, you need to find out where you are. Take a look at your current resources and expected expenses for the upcoming semester. Calculate the savings you expect to use, your expected income and expected expenses on a monthly basis. If your resources do not meet your expenses, you know in advance that you will need to find sources to finance your need. By knowing this before it is an emergency situation, you give yourself the luxury of time to solve your problem. Once you have your plan in place, you have to execute and track your progress. Keep records of all your expenses (receipts, bank statements) and income (pay stubs, loans). By comparing your actual amounts with your estimates on a monthly basis you can see where you are going and if adjustments need to be made.

It is my encouragement to you to develop a financial plan and follow it closely. If you already have one and have not been utilizing it, please start. By being responsible with your money in college you are putting yourself on the track to get a fulfilling college experience, graduate with minimal student loan debt, and the potential to start saving and investing for retirement at an earlier age. However, it all starts with a financial plan so save yourself time, money, and stress and develop a financial plan.

If you’d like to meet with a Powercat Financial Counseling peer counselor to get free assistance in developing your college financial plan, please contact us at powercatfinancial@k-state.edu or call us at 532-2889.  We’re students just like you and are here to help.  We have more information about this subject on our website at http://www.k-state.edu/pfc/planning.

Matt Kiehl
Peer Financial Counselor I
Powercat Financial Counseling
www.k-state.edu/pfc

Tips for Spring Break Trip Planning

You have finally made it to Spring Break and a much-needed reprieve from the stresses of college life.  Spring Break should be a fun time for sure, but it is important to not go overboard on spending during this week.  There are many ways to go into Spring Break financially savvy and not come out broke.  Planning your trip and expenses is essential to having a good time and not worrying about the impact your vacation will have on your finances.  Here are just a few tips on how to prepare for Spring Break financially.

Start saving early.  If you know that you want to go on a trip of any kind for Spring Break, it is a good idea to start saving up early.  A good time to start thinking about saving is once you are getting back from winter break and planning for what the spring semester is going to look like.  Any amount that you can set aside from each paycheck can help you get started.  The earlier you start this the better.  Once you have a solid idea of your Spring Break plans, then you can save accordingly.  You will be more at ease knowing your trip is paid off rather than sitting on credit card debt.

Plan travel and lodging expenses early.  The sooner that you are able to book hotels and flights the cheaper they will be.  If you plan on going somewhere for Spring Break, be sure to look up good deals as early as possible and from multiple websites or companies.  Travel and lodging are the most expensive parts of Spring Break, so it is a good idea to find any way to lessen the financial impact.

Set a limit on your spending.  Once you have your expenses covered for traveling and lodging it is also important to set a limit for yourself on how much you are going to spend during the trip.  Things like gas, air fare, and lodging are set prices but meals, souvenirs, and entertainment can also be very expensive additional costs.  Limit yourself to a certain amount of money to spend during the trip.  A good way of doing this is to have a certain amount of cash of hand specifically for the additional trip expenses.

Make your meals ahead of time.  Depending on the trip you are taking, it can be very beneficial to make meals ahead of time and bring them with you.  If meals are not included with your activities, you can make simple snacks and lunch food to have during the day so that not every meal is spent eating out.  Eating out at every meal for a week can get very expensive.

Carpool and plan out stops. If you are going with friends and not flying, why not start the fun earlier by road tripping with them.  Carpooling can save money on gas and help defray the costs between those in the car.  Also a lot of popular Spring Break locations will charge for parking and having fewer cars will make parking costs less.

Spring Break should be a great time to get away and enjoy yourself with friends, but it should not bankrupt you.  Hopefully these tips will inspire you to think of new and creative ways to  be smart about your money during Spring Break!

Adam Clement
Peer Counselor I
Powercat Financial Counseling
www.k-state.edu/pfc

Tips to Save on Valentine’s Day

Have a significant other and want to make this a special Valentine’s Day?  In college and have a limited income?  With Valentine’s Day just around the corner you should look for ways to get the most out of V-Day while sticking to your budget.  Here are some tips to making this year’s V-Day special and cost effective.

Set a budget.   This can help curb your impulses while shopping or taking someone out.  A good way not to over spend is to take out the money you want to spend on V-Day out in cash and only spend that amount.  This will ensure you spend only what you have budgeted for.

Don’t buy gifts at the last minute.  Start shopping early so you can get the perfect gift for your significant other without paying a fortune.  Decide on a great gift and then start shopping around.  Look in stores and online to find your gift on sale or buy it with a coupon.  Make sure you get the best price for your gift.

Create your own gift.  This can be a great way to save your money while giving a gift that is meaningful.  One way to accomplish this is to create a custom made card on the computer. You can personalize it with pictures and a love letter.  Another example is making chocolate covered strawberries or other desert to give as a gift.  You could even make a deal with your partner that all gifts have to be handmade.  Handmade gifts can be much more meaningful and romantic than generic store bought gifts.

Look for Valentine’s Day specials.  Many restaurants offer specials for this special day.  You can often save money by taking advantage of these deals.  Generally you have to book in advance for these places so make sure you plan ahead.

Plan a romantic evening at home.  You can make your loved ones favorite meal and enjoy a glass of wine together in the quiet and comfort of your own home.  You could rent a movie, play a board game, or just gaze lovingly into each other’s eyes.  This option could save you a bundle and be more intimate and romantic than a crowded restaurant.

You don’t need to blow your savings or rack up credit card debt to show someone you care on Valentine’s Day.  Use these tips to have a romantic evening while being financial responsible.

I hope you have a happy Valentine’s Day!

Andrew Witter, Peer Counselor
Powercat Financial Counseling
www.k-state.edu/pfc