Back to school budget: 11 ways to maximize your money

SALT LAKE CITY — You are on your own now, and with that freedom comes a lot of responsibility. In most cases, mom and dad will not be there to pay for stuff anymore. Or at least as much stuff. It is time to get real about your finances and learn to manage your own budget, no matter how big or small, and make it work to your benefit. These 11 tips will get you started on the right track to financial independence.

1. Know needs vs. wants. There is a big difference between what you need to survive and succeed, and what you want. You need food, water, shelter, and clothes. Tuition. Textbooks. And in this day and age, internet access and a cell phone. A new video game console? Nope. Guitar or keyboard? Not really, unless you are planning to be a professional musician. A car? Debatable. Learn to distinguish necessities from desires and put the essentials first.

1. Build your budget. Figure out how much your needs will cost you each month, and make sure you have enough in the bank to cover them. There are lots of free resources out there to help you do the math, from online budget calculators to apps and books. Find the one that is right for you, plug in the numbers, and make sure the dollars add up. You might have to get a part-time job, or better manage a stipend through your scholarship or parents, but now it is your responsibility to live within your means.
2. Set up autopay. Do not get behind on bills. Ever. Maybe you have utilities, a cell phone, internet, cable, car insurance, or rent. Possibly a credit card bill. Regardless, missing payments damages your credit and disrupts life. The last thing you want is to be without internet when you are cramming for your Psychology 101 paper and need access to online sources. Or have your phone is shut off while you are waiting to for a text back from that certain guy or girl in your English course about a study date.
3. Save up. For the wants, you have to set aside funds. There is simply no way around it. Start a part-time job, tuck away your summer babysitting or landscaping checks, and hunker down until you have enough cash to pay for that new video game system. You are not saving for a down payment on a new car or home yet, but this is good practice for bigger purchases down the road.
4. Build credit. One day soon you are going to want a nicer apartment. A phone upgrade and a better computer. And eventually some new wheels and home. All of these purchases require a credit check, and having a low credit score means you will receive a higher interest rate or be declined altogether. To build good credit, financial experts recommend having three separate lines of credit all in good standing. For example, a student loan; a phone, car, or computer payment; and a credit card.
5. Practice safe plastic. Credit cards make it entirely too easy to spend money you do not have. If you do not have a steady income, you are not ready to have a credit card. When you are ready, seek out a card with a competitive, preferably fixed, rate and only make purchases that can be paid in full monthly without carrying a balance. Seriously, shop around for the best rates. Credit unions typically offer the most competitive annual percentage rates. Cash withdrawals from your credit account are off limits. These carry the highest interest rates, and in the long run can end up costing you double or more than the actual withdrawal.
6. Minimize borrowing. Tuition is a major expense, but there are ways to cut back on how much you barrow. Carefully research your student loan options—not all are created equally. Contact your schools financial aid office to see what payment plans they offer, what loans they recommend, and ask about additional scholarship and grant opportunities.

1. Buy used. Textbooks are not cheap and can easily cost you five hundred dollars or more each semester. Whenever possible, purchase used books at campus or online bookstores. Even if your parents are paying, there is no reason to get new textbooks that you will only use for four months then put on a bookshelf to collect dust. And if you will not need certain books after the semester ends, resell them back to the same bookstore or online retailer and put that money towards the next stack.
2. Get a meal plan and use it. The dining hall might not be as good as the pizza place on Main Street, but eating out adds up. Campus dining is very cost-effective and offers a variety of options. You should also go to the grocery store once a month and stock up on snacks and quick, low-cost non-perishable (and preferably healthy) meals to keep in your dorm for necessary study-binge fuel to fend off any temptation to order delivery.
3. Find a part-time job. There are lots of on-campus jobs with flexible work hours for students. Take advantage of them. And whenever possible, apply for jobs that also serve as resume builders. Put the most effort into applying for jobs and paid internships that relate to your area of study, but also pursue positions that will keep cash flowing. There is a lot of competition out there, but do not be discouraged and keep applying and interviewing until you find the right fit, meaning a job that understands your education comes first.
4. Get involved. Opportunities to volunteer and contribute to university culture exist, and they are usually free. Seek them out. They are a great way to network and make friends, help build your resume, and keep you from spending cash. Got any tips to maximize your dollar? Share your thoughts on the comment board. Sharon Cook is the senior vice president of Marketing and Public Relations for Mountain America Credit Union

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