Kara Martin
Assistant Director of Financial Aid &
Financial Literacy Coordinator
[email protected]
ICE
BREAKER!
What is your earliest
money memory?
These early
experiences can
shape your money
behaviors as an
adult.
The Importance of a Budget:
Looking to Your Future
 Nearly 70% of consumers live paycheck to paycheck
 68% of Americans could not cover a $5,000 emergency
without having to go into debt for it
 55% of Americans “always” or “sometimes” worry
about their money
 Nearly 30% of Americans spent more time watching
reality TV last month than they spent planning and
preparing for retirement over the past 10 years
 Habits you form now will affect the rest of your life
As You Begin the Budget Journey
Take responsibility for
your money:
 Spend money wisely
 You are accountable for
your choices
 Get help
Behavior matters—
become mindful:
 Practice financial selfawareness
 Observe thoughts,
feelings, and behavior
 Watch yourself and
others and be honest
 Beware the 24-hour
marketplace
Budgeting Rewards
 Ability to maintain or improve your standard of living
 Controlled spending allows you to live well today and
tomorrow
 Accumulate wealth—Remember, whatever your
income, you can spend it or save it
 Hope of avoiding much of the havoc that money
problems wreak on your personal life—Conflict over
money is the leading cause of divorce
What is Your Biggest Obstacle to
Sticking to a Budget?
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Little things adding up
Impulse purchases (coffee, clothes)
Not knowing how to start a budget
Having trouble creating a budget that adequately reflects
all of my expenses, debts, etc.
Monitoring spending/tracking expenditures
Unexpected expenses—friends want to eat out, etc.
Not having a clear food budget
Feeling overconfident in my current spending habits
Not actually taking the time to make one
Problem being able to say “no” to things that don’t fit my
budget
Budgeting 101
1
• Develop a plan
• Keep it simple & realistic!
2
• Make a list of all sources of income
• Make a list of all anticipated expenses
3
• Identify shortfalls
• Do you have a Plan B for emergencies?
4
• Implement plan!
• Revisit and revise quarterly
Budgeting in Action
 A 1st year MD student will have a ten-month $24,897 cost of
living allowance built into the financial aid budget:
$24,897/12=~$2075 per month
*Per federal regulations, we are not allowed to provide you with financial aid for the months you
are not enrolled as a student, so you will need to ration your funds to make it last the full 12 mo.
*This is the gross amount disbursed to the student, not including the origination fees
This student would use $2075 as the amount coming in each
month, and subtract all obligations from this amount.
FINANCIAL AID EXPERT TIP: When you receive your loan
disbursement at the beginning of the semester, put the entire
amount into your savings account. Then, each month, pull
only that month’s worth of funds into your checking account.
Based on recent survey results:
Expense
Average Spent Per Month
Rent (with avg. of 1-2 roommates)
$1,000
Utilities
$125
Laundry/Dry Cleaning
$16
Groceries/Eating Out
$342
Clothing
$40
Toiletries/Personal Care
$33
Monthly Charlie Card
$63
Entertainment
$60
Other
$44
Total
$1723
If the student in the example stuck to this budget, s/he would have ~$352 in excess
each month.
FA EXPERT TIP: Return unneeded funds within 120 days of disbursement and
there will be no origination fees or interest accrued on that amount!
Types of Budget Plans
 Traditional—example to follow
 Zero-based
 Every dollar is given a purpose
 Every category is evaluated
 Tends to be a bit more work
 DsBudget is a useful website for this type
 Envelope method
 You can use “spreadsheet envelopes” instead of cash, or set up
separate bank accounts for groups of expenses
 50/30/20: Essentials/Goals/Wants
 Event-based
 Vacation, wedding, holiday spending
Traditional Budget Plan
Budgeting Tools
 Mint.com
 Budgetpulse.com
 AAMC’s FIRST page
 BudgetTracker.com
 MoneyStrands.com
 Buxfer.com
*These sites are not Tufts “endorsed”
Don’t Have Too Much Month Left at
the End of Your Money!
 Clip coupons to save money on groceries
 Carpool or use public transportation
 Buy clothes at end-of-season sales
 Buy generic brands rather than name brands products
 Buy non-perishable items in bulk
 Cut out the daily latte or frequent dining out
 The 30 Minute Rule: If you see something you “have to
have,” wait 30 minutes, then if you still can’t live
without it—make the purchase.
Student Discounts
 Several student discounts available both nationwide
and locally in Boston
 bostononbudget.com/college-discounts/
 www.giftcardgranny.com/blog/student-discounts/
 Amazon Prime for Students
 Amazon Subscribe & Save
Student Discounts: Clothing
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LOFT: 15% off
Ann Taylor: 20% off
Banana Republic: 15% off
J. Crew: 15% off regular-priced items
The Limited: 15% off
The North Face: 10% off
Marathon Sports: 10% off
But remember, just because something is discounted, does not
automatically mean it is budget friendly!
Entertainment
 Take advantage of happy hour food specials
 Use Groupon/LivingSocial/GiltCity for events and
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entertainment
Boston Public Library for movies, museum passes,
tourist site tours, and more with membership
AMC Loews Boston Common 19
ZipCar—TUSM students join for only $15
Seek out free or cheap events on
thebostoncalender.com
I’m not the only expert here…
Let’s help each other!
What tricks do you use to
save money?
Your Homework
 Determine your income/funds available per month
 Look at budgeting tools such as Mint.com or
budgetpulse.com (*these sites are not Tufts “endorsed”)
 Look at your monthly spending
 Determine the items that are costing you the most
 Make a plan…if you are spending $15 a week on an item
like eating out or coffee, make a plan to reduce it and
to reward yourself for sticking to it
Gift Card Raffle!
Bring us a copy of a sample budget you have created for
your expenses by Thursday, October 6th and you will be
entered to win a $15 Whole Foods or Amazon gift card
(winner’s choice)!
*You can also email the budget to [email protected]
with the subject “Budget”