Importance of Preparing a Student Budget

Preparing a budget is necessary for students for personal finance purposes, applying for student loans  and applying for foreign student visa, among others. As a student, you need to know the state of your personal finances. In the aspect of applying for student loans, you need to show the financial institutions that your financial position is feasible for the loan and your studies can be continued. The government agency issuing student visas also need to make sure that your finances are feasible before they permit you to study abroad.

Entries – Your student budget should include tuition, housing or rent, meals, health insurance, books, technology fees, transportation, communications, clothing, personal items, family expenses, personal expenses, recreation, travel and taxes among others.

Estimates Set by Government and Financial Institutions – The government agencies and private financial institutions who require your financial budget have set standards which are usually reliable and accurate. International students are expected to have their finances planned well and meet the standards set by the government. Financial institutions also require applicants for student loans to be able to give them correct budget figures so that they will be able to extend loans which can help the students not only in the aspect of defraying their expenses but also in the aspect of paying the instalments.

International Students – The budget is very important because international students do not usually get more financial aid by the time they start the school term. Thus, for example, a graduate student who is in an assistantship should understand its provisions as they would involve out of pocket expenses.