A financial budget refers to a formal expression of the plans for the operation over a certain period, and a forecast is the projection of all activities based on the recently available information. In addition, a financial budget and a forecast are the tools for estimating the financial results for a fiscal year. However, there are several advantages of college students completing a financial budget and forecast while they are still in school and prior to graduation. For instance, a financial budget and a forecast help the students to know how to allocate their money and resources, as well as present, them the choices on what stuff to buy critically based on their financial limitations. Hence, saves the students from the grief of over-spending and over-borrowing. Thus, a financial budget and a forecast do not prevent the college students from enjoying their money and resources but it only ensures that they enjoy the stuff when they want.
The primary and most considerate significance of a financial budget and forecast on college students is; it design a realistic plan on their spending majorly on the on the available financial resources. This helps the students to save the financial resources for future use as well as avoid long-term repayment of loans after graduation which may lead to low income, thus, making a person to be in face a financial instability. In addition, a financial budget and a forecast also help the student to be in a position to handle any financial emergency. For example, a student may face a sudden illness or the loss of part time job; this may throw the student off his budget and make it somehow impossible for the student to pay his bills at the correct time. However, the student still has the option of modifying his payment plan with his creditors available that reduces the payments to a more manageable level.
Further, a financial budget and a forecast help the students with the knowledge on how handle external factors such as peer pressure on the impulse buying and even conveniences like automatic teller machines creating havoc with the student financial resource budget. However, a financial budget and forecast in this case help the student with appropriate skills to sidestep the impulse spending as it deploy the student in control of the decision whether to impulse spend or not depending on the financial limitations of the student. Inclusion, the financial budget put more advantage to college students as it reduces stress in that it provide a sense of a limit on the financial resource coming in and going out. Hence, it shifts the stress into a feeling of empowerment. Direct priorities in students also come as a result of financial budgeting; it allows the students have a broad looked at their spending habits and set new priorities to increase their financial potential.
Conclusion
Having a financial budget and a forecast allows the students to view financial resources as a profitable tool that helps them to transform their mindset to focus critically on the long-term goals and future needs. Hence, this creates motivation in pursuing their academics goals as well as achieving financial stability level after schooling as they also shed light on the areas neglected by many students to notice on a day to day basis. Thus, it is considered appropriate for college students to complete a financial budget and forecast while still in school and prior to graduation.
