Ideally, budgets will be set for periods of one month, one semester, and one year. The shorter periods will allow more precision, while the longer periods can help provide insight on how to stretch your money to the fullest extent possible. Prepare an analysis of your present financial situation, listing all anticipated income sources and expenses. After assigning dollar amounts to each item listed, adjust the budget if there is a difference between income and expenses. If there is a budget surplus, the options include paying off bills or putting the money into a savings account to be used as a contingency fund for future emergencies.
Monitor expenses closely.
By keeping accurate records of income and expenses, you can tell how well you are sticking to the financial plan. In this way, you can determine the reasons for surpluses or shortfalls. Compare actual income and expense figures to those which were budgeted. Make adjustments accordingly. As you already know, the Family Contribution is based upon the self-reported information which you provided on the Free Application for Federal Student Aid.