Leaving for College? Rachel Cruze Shares 3 Tips for Gen Z Budgeters
Written by
Crystal Mayer
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Bestselling author and financial guru Rachel Cruze is known for providing no-nonsense advice for people of every generation. Whether you are just starting out and need easy steps to follow for saving money or are nearing retirement and want to boost your nest egg, Cruze’s advice is generally considered sound by most experts.
As the daughter of famed money expert Dave Ramsey, Cruze is no stranger to living on a budget. She regularly tells her followers about ways that she cuts back or shares recommendations on how to live a more frugal lifestyle. Recently, Cruze offered insight into how first-time budgeters can get started. Here are the three tips she shared for Gen Z budgeters who might be leaving for college soon and are looking to get their finances in order.
Establish a Zero-Based Budget
The first tip Cruze shared for first-time budgeters is to establish a “zero-based budget.” A zero-based budget requires that you allocate every dollar of your take-home pay each month. Every dollar is accounted for, whether you are saving it or spending it.
Therefore, if you take home $3,000 a month, all of your expenses should equal up to $3,000. Now, this does not mean that you actually spend all of your income, it just means that every dollar has a category of where it is used or spent.
Making a zero-based budget, or any budget for that matter, begins with listing your total monthly income and all of your expenses. For a zero-based budget, this includes what you put into savings, debt, entertainment, etc. Cruze then recommended tracking your transactions to ensure that you are staying on track and on budget.
Consider Using an App
The next tip Cruze offered to new budgeters is to consider using a budgeting app. While you can always take pen to paper to write out your budget, an app will make it much easier, according to the financial expert.
She suggested using EveryDollar. Created by Dave Ramsey, this app allows you to create a customized budget and easily track your transactions. There is a free version of the app with limited features or you can opt for the premium subscription.
There are a number of budgeting apps available, so it is recommended that you do your research before opting to purchase one. For Gen Zers who may be off to college and trying to figure out their own finances for the first time, an app can do wonders. It will give you a blueprint for how to track your spending and help to ensure you stay accountable to your goals.
Don’t Beat Yourself Up
Finally, the famed podcaster said you’ll want to give yourself a little grace. Budgeting for the first time is a big step, but it isn’t always easy. She said to “be proud of yourself” and know that it takes many people at least three months to feel comfortable budgeting.
As you dive in you may notice that you need to make adjustments to your spending, she explained. But once you have the hang of it, you may even “feel like you got a raise.” You will undoubtedly feel more confident spending money since it is already accounted for and you know what you need to do to meet your goals.
Challenges for College Students
Budgeting can be hard for people of any age, but college students may have unique challenges. For instance, you may only be able to work a limited number of hours in order to keep up with your classes.
It may also be the first time that you are living away from home and paying for things on your own. If you are new to budgeting you may not know to account for unexpected or irregular expenses such as car repairs, class project costs and medical bills.
The good news is that there are lots of resources to help make sure that you set yourself up for financial success now and in the future. Following these key pieces of advice will help you establish a solid foundation that you can use for a lifetime.
More From GOBankingRates
