The questions above are examples of financial goals that you may want to establish while attending school. Each student has different obligations and lifestyles outside of the classroom that will impact their financial goals. In the previous chapter you learned about financial aid and the different type of aid that is available for students to pay for college. It is important to establish how you will pay for college as well as your living expenses. It is important to establish what your financial needs versus your financial wants are. This way you can identify the expenses that are critical for you to pay each month. It is also important to see how your financial goals align with your academic goals. As a college student you have an academic goal to graduate and enter your career path. It is important to have those plans in place so you will be able to complete your degree and avoid excess debt. While it is advisable to work to graduate in four years to avoid additional fees and expenses, some people will be going to school while working full-time or acting as caregivers which might impact their time to completion. It is important to consult your advisor to create your own plan to graduate.

### Budgeting

Once you have established your financial goals, creating a budget is the next step in accomplishing these goals. A budget is a guide that keeps you on the path to reach your financial goals. Budgeting keeps your finances under control, gives you a tool to evaluate your spending, and helps you determine where your money goes instead of wondering where it all went.

######## Budgeting helps you answer these important questions:

- • money do I have coming in? • money do I have coming in?
- • does my money go? • does my money go?
- • there a way to spend less money? • there a way to spend less money?
- • will I handle unexpected expenses? • will I handle unexpected expenses?
- • can putting money into savings help me with some of my bigger financial goals? • can putting money into savings help me with some of my bigger financial goals?

######## In addition, budgeting can help you:

- • your personal, academic, career and financial goals. Writing down your • your personal, academic, career and financial goals. Writing down your financial goal is the first step in creating a plan to make them into reality. Abudget will help you prepare for unexpected expenses and obstacles. Budgeting involves challenging decision-making, but setting goals makes your goals more realistic and attainable. As you create a budget, you'll want to set short -, medium-, and long-term financial goals and track your progress toward achieving them.
- • save, and control your expenses . When you set up your budget, you will be able • save, and control your expenses . When you set up your budget, you will be able to see whether your expenses exceed your income and then identify expenses that can be reduced. Once you are aware of your income and spending, you can make informed decisions that will help you meet your financial goals. Following a budget can help you save money for the things that really matter to you.
- • debt and improve your credit . Whenyou stick to a budget, you minimize spending • debt and improve your credit . Whenyou stick to a budget, you minimize spending more than you earn and which can help lower or reduce your debt. If you have received student loans to pay for your tuition, fees and/or living expenses, a budget will help you