Hey friends, and welcome back to another lesson with CBC! Today, as you can see, CBC has become
ACBC. Artist college-bound Caroline. She's been wanting some new art for her bedroom
but can't afford to buy any. So she's using one of her budget saving tricks by painting over an
old canvas to make a new creation. What do you think she should paint? A still
life of some flowers and fruit, or an ocean landscape? Or maybe just this little guy.
While she's painting, CBC is also considering other budget saving tips and tricks she can use
when she goes off to college. Maybe she can share some with you! CBC's penny pinching painting is
created through setting a budget, seeking savings, and searching for financial hacks.
Grab a smock, a fancy hat, and your paints and let's get started!
Now, CBC knows that when she's at college her parents won't be around. So it'll be up to her to
mind her money, and the first way she can do that is through setting a budget. CBC starts her budget
by calculating her monthly income. All of the money she will receive in a month.
With her income, she will consider all the possible ways that she will be earning money. CBC
has already applied for and received a work-study job. So she will put that amount into her budget.
She will also count several side jobs she will be working as a writing tutor, piano teacher,
and gymnastics coach. That is all of CBC's income, but other students should also consider adding
money received from caregivers and loans. Once CBC finishes feeling super rich with all of her
income - are you done? Not yet? Okay, we're moving on. Now, CBC's tuition is fully covered through
scholarships and grants, but others may also need to factor in that additional cost. While
she doesn't have a tuition payment, CBC does have a lot of other expenses. CBC's monthly expenses
include things such as rent or college housing costs, groceries or a college meal plan cost, gas,
school supplies, cell phone bills, insurance for both car and health, internet, utilities,
memberships for gyms and streaming services,
and miscellaneous items like gifts, clothing, and eating out.
Not feeling so rich now, are we? After CBC has listed all of her expenses, she organizes them
into necessaries and extras. Necessaries are those that she absolutely must have in order to live,
such as rent and groceries. Extras are the things that she wants but doesn't necessarily
need, like a streaming service membership or eating out at restaurants. While she doesn't
know exactly how much her expenses might be, CBC can calculate a rough estimate.
When in doubt, she always calculates her expenses higher rather than lower.
Since she has created her budget, CBC is ready to move on to the next step of her penny-pinching
painting, seeking savings. The first thing she must do is make adjustments to her budget.
CBC compares her income to her expenses. Obviously she doesn't want her expenses to exceed her
income, so it's time to make some adjustments. Which of her extra expenses can she cut down on
or completely delete? CBC has decided to end her gym membership and use the college's free gym.
Her older sister has also graciously agreed to share her streaming password. Shh, don't tell
anyone! So CBC can mark that off her list as well. CBC's college meal plan covers two meals a day.
So she plans on getting some breakfast bars in her dorm room for the mornings.
That'll help her cut back on eating out. No more mid-afternoon taco runs.
Now, she still has the necessaries, but maybe CBC can adjust some of those expenses down a
little. For her school supplies, she can buy or rent used textbooks instead of paying for brand
new ones. Digital textbooks are also widely available now. Plus, get ready for a top secret
known to seasoned college students. Used textbooks are sometimes better than new ones,
because they have all the notes inside from past students. Sometimes assigned textbooks aren't
actually used in the class. Ask previous students if they ever cracked open that spine. One of the
biggest expenses for CBC is health insurance. Some of her friends consider this expense to
be an extra, but for CBC health insurance is necessary due to her asthma. Fortunately, CBC
like other young adults can be on her caregiver's health insurance plan until she's 26 years old.
Another way CBC can seek savings through her budget is by getting a credit card. What? I know
that sounds like the opposite of saving money. However, many credit cards come with something
called cash back. With CBC's credit card she can get one percent cash back on all purchases.
So if she spends $100 on groceries, she will get $1 back. Every month there is also a special
category that gets five percent cash back. If that category is gas stations, and CBC spends another
$100 on gas, she will receive $5 back. Now, that may not seem like much money. I mean, that's only
$6 overall. But hey, that's some taco spending money! Another pro to having a credit card is that
CBC is building her credit score. So when she is ready to be on her own and apply for apartments,
buy cars, and all that other fun adult stuff, she will have a decent credit score already built up.
But a serious warning for CBC and other soon-to-be university students.
Having a credit card may not be good for those who struggle with overspending. CBC must always make
sure to pay her credit card in full every month. She has set up automatic payments,
so she never forgets. If you aren't sure you have the discipline to not overspend on a credit card,
it's probably best to wait until you're sure. Talk to your caregivers to see what they think.
CBC makes it her mission to never spend money that she doesn't have.
Which is why the final step to CBC's penny pinching painting is searching for financial
hacks. Once CBC receives her college's student ID, she will always keep it in
her wallet. Many places like restaurants, movie theaters, and even some grocery stores
offer student discounts. So CBC is always prepared to show she's a student to get those savings.
CBC can also get savings through her textbooks. When she has to buy books for a class, CBC can
resell them after she has completed the course. She can either list them online, or sell them
directly to other students who will be taking the same course. But CBC won't be spending all
her time with her textbooks, because she's found another financial hack. Like lots of young adults,
CBC loves going out and having a good time. But she's also trying to tighten her purse strings,
spend less money. Guess what? There's a way to do both! There are actually a lot of free events
and activities in most cities. These can range from park openings, to music festivals, to art
exhibitions and more! And who knows? These events may even have some free food, or dare I say,
tacos? And while we're on the subject of food, one of CBC's favorite subjects, let's talk about
financial hacks for groceries. First, CBC will get a membership. Lots of grocery stores offer
memberships. With some places, the more groceries you buy from them, the more points you earn.
These points can be translated into discounts on gas. Some grocery stores also put out bakery
carts on specific days with items that are close to expiring. These are usually given a
hefty discount. So CBC can get a bag of rolls for just $1. Putting baked
goods in the fridge or freezer will keep them from molding. CBC can also cut coupons. She
can either do this physically or online. Many grocery stores have apps with coupons as well.
CBC may also be able to receive free food and groceries. Some college organizations,
churches, and local businesses will offer food drives or potlucks for students. Finally, tacos!
Well, we better let CBC enjoy her taco while you check out the practice questions for this
lesson to prepare for our next unit where we will learn all about creating a community
at college. Until then, keep your fingers and your paintbrush crossed for college-bound Caroline.