Chapter 13: managing your money

• budget: spending plan that tracks all sources of income & expenses during a set pd. of time
• creating a budget:

1. gather basic info: learn more about income & spending behaviors, how much $ is coming in & when? write it all down, track spending for a couple of weeks, record every bill & purchase
2. build a plan: make columns of income, expected cost, & actual cost
3. do a test run: use budget plan to see how things go
4. make adjustments: improve budget, reallocate funds

• fixed expense: will cost you the same amount every time you pay it
• variable expense: one that may change
• recognize difference btwn needs & wants: need= something you must have, wants= goods, services, experiences. NEEDS BEFORE WANTS.
• live w others & share costs
• consider pros & cons of living closer to campus, to save gas, time, etc.
• use lost-cost transportation
• seek out discount entertainment options- student discounts
• embrace secondhand goods
• avoid unnecessary fees
• types of financial aid:

-need based scholarships: based on talent (past accomplishments, sports, arts, potential, etc.) & financial need, don't have to be repaid
-merit scholarships: based on talent but not necessarily financial need, don't have to be repaid
-grants: based on financial need, don't have to be repaid, students meed academic qualifications for grants by being admitted to college & maintaining acceptable grades
-work study: for students w financial need, job at the school
-student loans: best option is subsidized federal student loan

• subsidized federal student loans: backed by gov., interest paid on your behalf
• unsubsidized federal student loans: require you to make interest payments while you're enrolled
• ^if not, interest is added to amount you owe (capitalization)
• parent loan for undergraduate students (PLUS) loans: applied for & owed by parents, disbursed directly to students, higher interest
• private student loans: stricter credit requirements, higher interest than federal loans, interest payments begin immediately
• to qualify for aid, fill out FAFSA (free application for federal student aid) 
• to avoid losing funding, meet grade requirements, complete courses, & finish degree on time
• file for financial aid every year
• meet filing deadlines
• credit score: numerical representation of your fiscal responsibility derived from credit report w info about accounts in your name
• w a credit card, don't just make minimum payment bc the remaining balance will be charged interest
• don't use credit card to fund a lifestyle you can't afford
• debit cards are good form of constraint on your spending