(Adapted from: Sullivan and Repak (2009). Financial Pressures for Graduate Students.)
The decision to invest in a graduate programme requires a certain degree of financial sacrifice. Even with funding from the school or from parents, most of us will find that some expenses will not be covered and we may not be able to maintain the same standard of living as before. Some of us may feel that graduate school is a calling, as we have performed well since our high school and undergraduate programme. To be plagued by financial issues may be painful, and we may find it difficult to make budgeting and expense tracking part of our lives as we progress through graduate school. Here are some ideas that may help.
Plan early
Some of us may be fortunate enough to get financial support from our parents or spouses, but in all likelihood you'll need to seek out other funding options and make appropriate financial planning even before deciding to embark on a graduate programme. The best course of action is to arm oneself with information on the various funding mechanisms designed to help students, including national-level applications as well as school-based funds. Most schools list funding options on their websites, and all potential graduate students should make it a point to look up those options before making the decision to enroll.
Avoiding debts
Not everyone has the natural ability to plan financially and as we enter graduate school, we may find student loans and housing forming a large part of our expenses. In addition, some of us may find credit card debts accumulating based on poor decisions we've made on other expenses, including food, entertainment, and even furnishing.
One important element to avoid debts is to pay down loans as early as possible. Short-term, high-interest loans, including credit cards and overdrafts, must be the first priority. These debts tend to grow at a much faster rate than student loans.
Another very important step is to keep track of expenses. We need to develop a practical budget, in which we assign appropriate amounts to items that we need in our daily lives - including food, books, transportation costs such as fuel or bus fare, and even photocopying. A reasonable monthly amount should be assigned to each category. In order to make reasonable estimates on these amounts, seek information on the cost of living in the city in which the graduate programme is located. Most importantly, once an amount has been budgeted for the items, you must endeavour to stick to it.
Lastly, always have a contingency plan to cover unexpected or emergency expenses. Even with the best-laid plans, there are unforeseen circumstances that may cause us to deviate from the path. Don't be too hard on yourself; some occasional setbacks can be corrected if you are diligent and committed to making financial planning part of your graduate studies years.
