Financial Aid
Your Path to Financial Wellness
What is Financial Wellness?
Financial wellness means having control over your day-to-day finances, being prepared for the unexpected, and working toward long-term financial goals.
How to Build a Budget
A budget is a plan that helps you track your income and expenses so you can manage your money wisely. It shows how much money is coming in, how much is going out, and helps you prioritize your spending. A budget can help you save for future goals and avoid overspending.
Step 1. Figure out your after-tax income
If you get a regular paycheck, the amount you receive is probably your after-tax income, also called net income or take-home pay. After-tax income is usually just that – the money you have left after federal and state taxes come out. For budgeting purposes, if you also have money taken out of your check for your 401(k), or health or life insurance, add those deductions back in to give yourself a true picture of your savings and expenses.
Step 2. Choose a budgeting system
A budgeting system is a framework for how you budget. Everyone has different habits, personality types and approaches to managing money, and there are systems that can fit your lifestyle. Any budget must cover all of your needs, some of your wants and savings for emergencies and the future. Budgeting system examples include the envelope system, the zero-based budget, and the 50/30/20 budget.
Step 3. Track your progress
Record your spending, or try tools such as budget apps or budget templates. Pay attention to where your money is going, If you notice areas where you’re overspending, try to cut those costs. If you’re able to make cuts and have money left over, put it toward debt repayment, savings or another financial priority.
Step 4. Automate your savings
Automate as much as possible to make things easier on yourself. You can set automatic deposits to an emergency fund, investment or retirement account to match up with your paydays.
If your income is irregular, set reminders to manually transfer the money when you can. In either case, an accountability partner or online support group can help, so that you're held accountable for choices that don't fit the budget.
Step 5. Practice budget management
Your income, expenses and priorities will change over time, so manage your budget by revisiting it regularly, perhaps once a quarter. If you find that the initial budgeting system you chose isn’t working for you, consider trying a different strategy. The budget you choose doesn’t have to last forever.
One popular budget plan is the 50/30/20 budget. Over the long term, someone who is able to follow these guidelines will have manageable debt, room to indulge occasionally, savings to pay for irregular or unexpected expenses and the ability to retire comfortably.
Allow up to 50% of your income for needs
Your necessities — about 50% of your after-tax income — should include:
- Groceries.
- Housing.
- Basic utilities.
- Transportation.
- Insurance.
- Minimum loan and credit card payments. Anything beyond the minimum goes into the savings and debt repayment category.
- Child care or other expenses you need so you can work.
Leave 30% of your income for wants
Separating wants from needs can be difficult. In general, needs are essential for you to live and work. Typical wants include dinners out, gifts, travel and entertainment.
It’s not always easy to decide: Are restorative spa visits a want or a need? How about organic groceries? Decisions vary from person to person.
If you're eager to get out of debt as fast as you can, you may decide your wants can wait until you have some savings or your debts are under control. But your budget shouldn't be so strict that you can't buy anything for fun.
Every budget needs wiggle room for unexpected or unanticipated costs, plus some money to spend as you wish. If there's no money for fun, you'll be less likely to stick to your budget.
Commit 20% of your income to savings and debt paydown
Use 20% of your after-tax income to put something away for the unexpected, save for the future and pay off debt balances (paying more than minimums). Make sure you think of the bigger financial picture. That may mean two-stepping between savings and debt repayment to accomplish your most pressing goals.
Here’s a breakdown of each budget category and what kinds of expenses might fit into each group:
50/30/20 Live Budget Calculator
50/30/20 Live Budget Calculator
Monthly Expenses:
Results:
Total Expenses: $0.00
Remaining Balance: $0.00
50/30/20 Rule Guidance:
50% Needs Target: $0.00 | Your Needs Total: $0.00
30% Wants Target: $0.00 | Your Wants Total: $0.00
20% Savings/Debt Target: $0.00
Saving
Saving means setting aside money for future needs or goals instead of spending it right away. It helps you prepare for emergencies, big purchases, or long-term plans. Even small amounts saved regularly can add up over time.
Saving Money: Build Your Financial Safety Net
- Saving money is a key part of your financial wellness journey. Even small amounts saved regularly can help you handle unexpected expenses, reduce stress, and reach your goals.
Why Save?
- Emergencies happen — having savings prevents small problems from becoming big financial setbacks.
- Savings help you avoid relying on credit cards or high-interest loans.
- Building a savings habit builds your confidence and financial independence.
How to Start Saving as a Student:
- Open a basic savings account, even if you start with $5.
- Set a small, achievable savings goal — like saving $10 per week from your paycheck or financial aid refund.
- Automate your savings if possible — transfer money as soon as you receive income.
Look for ways to cut expenses:
- Pack your lunch or coffee
- Use student discounts
- Share costs with roommates
- Celebrate progress — saving takes time, but consistency adds up!
Recommended Rule:
- Pay Yourself First - Treat your savings like a bill. Prioritize putting money aside before spending on entertainment or extras.
Debt
Managing debt means keeping track of what you owe and making payments on time to avoid extra fees or damage to your credit. It involves borrowing responsibly, paying off high-interest debt first, and only taking on debt you can afford to repay. Good debt management can help you stay financially stable and reduce stress.
What is Debt?
Debt is an amount that is owed to a person or an organization for funds borrowed, and is to be repaid – generally with interest. Not all debt is bad debt. Certain debt, like student loans and business loans, may be considered a good investment (or good debt) if managed properly.
Loans
A loan is one method for financing the different purchases or investments you make and is generally repaid with interest. Be aware that missing payments or defaulting on your loans can be extremely damaging to your credit.
Student loans can be one way to help establish good credit if payments are made on time and in full. There are several types of federal student loans that are offered through the Free Application for Federal Student Aid (FAFSA). You can also read more about federal student loan options.
Tips for Borrowing
The less you have to borrow, the less you have to repay.
Estimate repayment amounts before you borrow.
Total student loan debt should be less than starting annual salary after graduation.
Use loans only for educational purposes—not for buying a car, going on vacation, etc.
Make a budget without using loans as a resource. Borrow only what you need to cover remaining expenses.
Recognizing Debt Distress
Many times, signs of debt distress may not be recognized because they don’t occur daily, they might appear harmless, or people don’t connect them to any long-term consequences; however, frequent and habitual use of debt can become a problem.
Some Signs of Debt Distress
- Using credit cards to pay for living expenses
- Using the overdraft protection plan on your checking account to pay monthly bills
- Using savings to pay bills
- Taking on more debt to pay off existing debt
- Delaying one bill (or “floating”) to pay another overdue bill
- Paying only the minimum due on credit card accounts
If you find yourself in the habit of committing one or more of these, you should consider seeking help with managing your money and developing a plan to pay off your debts.
- Home
- How to Apply for Financial Aid
- Types of Financial Aid
- Cost of Attendance
- Financial Wellness
- Financial Aid TV (opens in new window)
- Financial Aid Workshops
- Finish Line Scholars Program
- Plumas Pipeline
- California Virtual Campus (CVC)
- Forms and Policies
- Unusual Circumstances
- NextUp / Foster Youth
- UndocU
- Veteran Services
- Important Dates
- Resources
- Financial Value Transparency and Gainful Employment
- Consumer Information
This site provides information using PDF, visit this link to download the Adobe Acrobat Reader DC software.