FEBRUARY 1988

U. THE NATIONAL COLLEGE NEWSPAPER 11

FEBRUARY 1988 U. THE NATIONAL COLLEGE NEWSPAPER 11

I

Why slum it when you can budget?


By Phoenicia Miracle
College Heights Herald
Western Kentucky U.
Each year students take out loans,
receive grants, have their parents send
them money and search for part-time
jobs-all in an attempt to get money.
But once they get the money, some
students don't know howto make it last.
"If you want to have choices, you've
got to have a budget," said Peggy Keck,
a personal finance instructor.
To form a budget, students need to
decide what expenses they will have be-
sides their room, board and tuition. If
not sure of all the expenses, students
should keep a list of everything they
spend their money on for at least one
week. This way they can categorize
their expenses, said Craig Heller, chair-
man of the Kentucky Society of Certi-
fied Public Accountants.
After the costs for all items are tal-
lied, 10 percent should be added to the
budget in case the figures were under-
estimated.
The student should total all sources of
income. If expenses cannot be covered
by the income, students have to in-
crease the income or decrease spending.
The ABC's of
getting credit
By Cynthia Williams
College Heights Herald
Western Kentucky U.
Getting credit can be exasperating.
It's hard to get credit unless you
already owe somebody.
It's a Catch-22.
When students apply for loans or cre-
dit cards, they're likely to find that hav-
ing a blank history makes that first loan
or major credit card hard to get.
Long or short, good or bad, a person's
credit rating will be consulted every
time a loan is needed or a credit card is
applied for. Lou Sepulueda, manager of
the Credit Bureau in Bowling Green,
said the information is provided by cre-
dit granters-banks, department stores
and credit card companies. Included is
information about monthly payments
and how they are managed.
To begin a credit rating, Sepulueda
suggested opening a checking or sav-
ings account at a bank.
"This will establish you at the bank,"
he said, "but they are seldom reported to
Pa credit bureau."
Sepulueda recommends always mak-
ing loan payments on the first deadline
rather than using grace periods allowed
for late payments.
Major credit cards may be difficult for
students to obtain because they require
a regular income.
But department stores issue cards to
students, and J.C. Penney and Sears
often have special promotions to en-
courage students to apply for cards.
Sepulueda said the department stores
report to credit bureaus, thus getting
the student's credit history started.
"The trick with credit is to never over-
extend yourself," Sepulueda said. "Once
you have messed up your credit, it will
remain on your credit rating for seven
years."
If the computer screen shows major
,credit cards at their limit, late loan pay-
ments or even too many active accounts,
you may be turned down, he said.

Many students do not have a written
budget but keep a mental calculation of
their incomes and expenses.
Senior Glen Stikeleather said he
doesn't have a budget. He said he keeps
account of his money on a weekly basis.
"I just try to keep in mind how much
money I have in my account," he said. "I
consider whether I really need some-
thing or whether I just want it."
Graduate student Mike Nichols said
he doesn't keep a budget either. "I just
keep an idea of how much money I have
and try to think ahead."
Nichols said he receives his money
from his parents in one lump sum. Be-
cause he doesn't have a budget, he said,
"I may go hungry the last part of the
semester."
Junior Melissa Hester plans a budget
for each week .

MELISSA HESTER: Plans MIKE NICHOLS: Thinks GLEN STIKELEATHER:
weekly budgets ahead; may go hungry Thinks need or want
"I've got to have a budget. I've got tain amount of time," he said.
payments each week," Hester said. "I The amount of a student's resources
always pay my bills first." and income should have nothing to do
There are a couple of ways to stick to a with whether or not the student forms a
budget, said Heller. budget, said Certified Public Accoun-
"A method that may work for some is tant Kim Kirby. "I think that itis impor-
to set aside the money in a certain bank tant for everyone to havea budget ... to
account and only check it out for a cer- be able to manage his cash flow."

Until you taste KUDOS yourself
this will have to describe it.
You've never been here before. No one has ever put rich
milk chocolate, crunchy nuts and moist, chewy granola
into a snack so right. With a taste this good. In nutty
fudge, chocolate chip or peanut butter.
It's tomorrow's snack, today.