One of the first things you must do to plan for the cost of college is to develop your own budget for the academic year. Setting up a budget is easier than it sounds. To help you with this process, go to our Budget Worksheet.

• First, identify your direct costs. These include tuition, fees, room, board, and other expenses that are directly billed to you by your college.
• Then determine your indirect costs. These include books, supplies, transportation, entertainment, and other miscellaneous items.
• Remember that most colleges use a nine-month academic calendar.

The budget you create, using the budgeting worksheet, reflects your expenses per academic year. The final number may be large, but don't panic. You have not yet calculated your resources such as savings, earnings, and financial aid.

You may find it helpful to use a monthly budget so you can plan and control your spending. Remember that your costs can change from month to month. For example, you will probably purchase your textbooks at the beginning of each semester. It's a good idea to look beyond the current month so that you can make wise choices. If you want to buy holiday gifts in December, you may need to cut back on other costs in October or November. Prepare yourself for both the expected and the unexpected. Use our money saving tips to help cut costs.