Budget advice: spend a little, save a little
- Jack Kraettli shared the fact that U.S. citizens have spent more than they have with a group of students during a recent Brown Bag Lunch that focused on students’ budgeting habits.
- Kraettli also discussed the importance of planning for the future and having a retirement plan.
By Jill Dankbar, News Writing Student
“For the last eight years, the citizens of the U.S. have spent more than they have.”
Jack Kraettli, Extended Services administrator, shared this fact with a group of students during a recent Brown Bag Lunch that focused on students’ budgeting habits.
“Budgeting is a necessary exercise and application that must be learned to ensure a person’s best and extended lifestyle,” Kraettli said.
He then offered several steps to achieve budgeting bliss:
• Students must live within their means and remember to not spend every penny they make. Many students try to live a lifestyle they can’t afford, he said.
• Students need to track their money to make the best budgeting decisions for their lifestyle. Keeping receipts is key to making good budgeting decisions.
• Students must prioritize. Kraettli said students should try cutting back on less important items.
• Saving should be a part of a student’s monthly budget. Before spending, students should set aside a portion toward savings.
• Students also should avoid racking up credit debt. Kraettli said never purchase items on credit that decrease in value, such as clothing, food, entertainment and vacations.
It is smart to always try paying with cash, he said, especially for everyday items. He said this is an easier way to see exactly where a student’s money is going.
•As a basis for budgeting, a student should always record every expenditure. It also is helpful to categorize expenditures and then total each category, Kraettli said. Students can then analyze where the majority of their spending is focused.
•Have a safety net. Kraettli said it’s a good idea to have an emergency fund to serve as a financial cushion.
He also discussed the importance of planning for the future and having a retirement plan.
“What you do today will affect what you are able to do in the future,” he said.
During the presentation, Kraettli shared the website moneycentral.msn.com/retire/planner.aspx.
He said the site offers help planning for retirement.
Student Greg Edwards said he will be able to use the information presented.
“The information on the website is going to be very beneficial …,” he said.
Student Lacey Scott said she left more informed as well.
“The budgeting tools presented have opened my eyes to the future,” she said.”
Kraettli said he enjoys helping students learn about budgeting their lifestyles.
“When I see students that are growing in life and lifestyles, I feel generously rewarded for my time.”
