Page 316 - Keys To Community College Success

KEY 11.3 Where money comes from . . . and where it goes.

Common Sources of Income Common Expenses

• Take-home pay from a full-time or • Tuition you are paying now
part-time job
• Books and other course materials
• Take-home pay from summer and • Rent or mortgage
holiday employment
• Utilities (electric, gas, oil, water)
• Money earned from work-study or paid
internship • Telephone (cell phone and/or landline)
• Money from parents or other relatives • Food
• Scholarships • Clothing, toiletries, household supplies
• Grants • Transportation and auto expenses
(gas, maintenance, service)
• Loans
• Credit cards and other payments on
credit (car payment)
• Childcare
• Entertainment (cable TV, movies,
eating out, books and magazines,
music downloads)
• Computer-related expenses, including
online service costs
• Insurance (health, auto, homeowner’s
or renter’s, life)
• Miscellaneous expenses

11
CHAPTER ■ Expenses. Did you forget to budget for recurring expenses such as the cost for

semi-annual dental visits or car insurance? Or was your budget derailed by an
emergency expense?
■ Spending patterns and priorities. Did you spend money wisely during the month,
or did you overspend on wants?
■ Income. Do you bring in enough money? Do you need another income source or
better job?

Adjust Spending or Earning
If you spend more than you are earning, you can earn more, spend less, or better yet, do
both. You will explore ways to increase income through jobs and/or financial aid in the
next section.
There are many ways to decrease spending. Perhaps the most important one is think-
ing before you buy: Do I really need this? Is the expense worth it? Just answering those
questions will reduce unnecessary purchases. Here are other ways to manage spending:

Set up automatic payments. If you set up electronic monthly payments for bills and
tuition and schedule regular automatic transfers of small amounts into your savings,
you will take care of your needs first without thinking about it. Then, you can look at
what is left over and decide how you want to spend or save it.

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