Many undergraduates project students do not see the need for budgeting because what they receive from their parents or guardians have been assigned a specific purpose and as such many undergraduates feel they cannot save from what they are given. And many even have the notion that since they are not earning or working class there is absolutely no need to save. But this notion is totally wrong everyone needs to budget for every income coming in and try as much as possible to save for the rainy day no matter how little. However, Budgeting is one of those words that can make undergraduates students tune out pretty quickly.
The idea of managing money when you are already trying to manage as an undergraduates especially for those coming from poor homes or societies and communities that do not believe in education, can seem like a hassle. However, just having a savings account where you deposit little amount daily, weekly or monthly depending on how the income is coming in can help you hit the ground running in your later years of life and even while in school.
Saving money is as easy as cutting out that coffee or frivolous lifestyle a couple of days a week and sticking it into your savings account. Your stomach may be against the idea at the time, but your wallet will thank you later.
Deciding to cut down on some unnecessary expenses and focusing it on more important things is a great start to budgeting. It’s also a small step towards learning the importance of watching your financial habit throughout your entire life. As an undergraduate your saving culture in your years in higher institution may determine how your spending habits are going to be later in life and how far you will go in life.
Therefore, understand the culture of budgeting before spending, spend according to priority understand the difference between wants and needs when budgeting and purchasing items. If the item you are buying is not important or a priority to your survival then it can be viewed as a want. Being able to differentiate between the two and having a budget even before going to the grocery store helps you to curb that impulse buying in most cases.
What Is Budget?
Budgeting is a proactive approach to organizing your finances. Budgeting ensures you're not spending more than you're making, allowing you to plan for short- and long-term expenses. It's an easy, helpful way for people with all types of income and expenses to keep their finances in order. You simply want to be able to track your income left over after all expenses to ensure you're not falling into debt. Budgeting can also be said to be the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Furthermore, Budget means a quantitative statement, prepared before a particular period to serve as an estimate of future receipts and disbursements. The integrated process of preparing, implementing and operating budgets is called as Budgeting.
A budget is a quantitative plan for acquiring and using resources over a specified period. Individuals often create household budgets that balance their income and expenditures for food, clothing, housing, and so on while providing for some savings.
According to Wikipedia, a budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Companies, governments, families, students and other organisation use it to express strategic plans of activities or events in measurable terms.
Types Of Budget
There are two (2) major types of budget which are:
i. Long-term Budget, and
ii. Short-term Budget.
Long-term Budget

This budget is related to the planning operations of an organization for a period of 5 to 10 years. The long-term budget may be adversely affected due to unpredictable factors. Therefore, from a control point of view, the long-term budget should be supplemented by short-term budgets.
Example: Research and Development Budget, Capital Expenditure Budget, etc.

Short-term Budget

This budget is drawn usually for one year. Sometimes a budget may be prepared for a shorter period (like monthly budget, quarterly budget, etc.). Short ¬term budgets are prepared in detail and these budgets help to exercise control over day-to-day operations.
Example: Material Consumption Budget, Labor Utilization Budget, Cash Budget, etc.

Why Budgeting Is Important To Undergraduates

a) It helps control expenses

One of the importance of budgeting is that it helps you control your expenses. You plan your spending according to priority; it helps you understand the difference between your wants and needs and also helps you curtail frivolous lifestyle to avoid spending unnecessarily.

b) It helps improve saving

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Not only will it help you have enough money for the things you need, it will help you have a savings for the rainy days and in cases of emergency. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
The image of poor college students is a pervasive one, but it need not be true. Those who plan and budget wisely actually can save money while in school. Even if it doesn’t seem like much, it does add up.

c) It promotes planning among students

The image of poor undergraduates’ students is a pervasive one, but it need not be true. Those who plan and budget wisely actually can save money while in school. Even if it doesn’t seem like much, it does add up. Knowing how to plan while in school will be of great advantage to you later in life as against those who do not plan.

Conclusion

As an undergraduate if you understand the importance of budgeting while you’re in school, you will be a step ahead of most people when you graduate. More importantly, these habits will stick with you your entire life as you continue to build your wealth.
Budgeting is very important for your financial stability, ensuring you can pay common expenses like rent, tuition, student loans, credit card bills, and entertainment won’t be such a big deal.