A、Purchasing a new smart phone. B、Saving money for a vacation. C、Paying for college. D、Keeping track of their spending. D

W: Do you know where your money goes? Do you spend more than you think you should? Do you never have quite enough cash to buy the things you want? Answering these questions and understanding the role money plays in your life is the first step of wise money management. Here in the studio for today’s Managing Your Money program we have Prof. Peter Sampson, the University’s Financial Consultant. Prof. Sampson is also dean of the School of Economics. Prof. Sampson, to start with, what advice would you give to our students regarding their finances?
M: Well, if you have money problems, and there’s virtually no one who doesn’t have some concerns about finances, the solution is to develop a budget. A budget is a formal plan that accounts and plans for expenditures and income. Although it is based on an uncomplicated premise i.e. expenditures should not exceed income, budgeting is not simple, particularly when you are a student.
W: Is it very complicated to make out a balanced budget?
M: Budgeting is very personal; what is appropriate for one person doesn’t work for another. For a few people, keeping track of their spending comes naturally; they enjoy accounting for every dollar that passes through their hands. For most people, though, developing a budget—and sticking to it—does not come easily. However, if you follow several basic steps, the process of budgeting is straightforward.
W: Can you elaborate on some of them?
M: Sure. First, you need to identify your financial goals. You need to ask yourself why you want more money. What would you spend it on? What would bring you the most satisfaction? Purchasing a new smart phone? Saving money for a vacation? Paying for college rather than taking out loans? You won’t be able to develop a budget that will work for you until you determine your financial goals.
W: Then, what is the next step?
M: Second, you need to determine your expenditures and income. You need to make a list of everything you think you’ll need to spend over the next year. Some items are easy to think of, such as rent and tuition payments, because they occur regularly and the amount you pay is fixed. Others are harder to budget for because they can vary substantially. For example, the cost of books varies considerably from one term to another. As for your income, apart from your monthly stipend it’s as important to list other sources of income. List any support you receive from family members. Also include any financial aid such as tuition reduction, loan payments or scholarship. If you’ve prepared and organized your budget, actually constructing your budget is as easy as adding 2 + 2. Well, the numbers will be larger. But all you need to do is add up your list of expenses, and your sources of income. In a perfect world, the numbers will be equal.
W: That sounds perfect. But most of the time, most of us find that expenditures are larger than our income. What are your suggestions?
M: Well, if you find you spend more than you make, there are only two things to do: decrease your spending or increase your income. It’s often easiest to decrease expenditures, because your expenses tend to be more under your control. There are many things you can do, for example, control impulse buying, make major purchases only during big sales and so on. Furthermore, one of the best ways for students to save money is to get good grades. If you are forced to repeat a class because of a low grade, you’ll have to take another course as a substitute, and that may be an added expense.
Budgets can also be brought into balance by increasing income. The most direct way to increase income is to get a part-time job. Although working adds to the time-management challenges you will face, it does not mean that your grades will necessarily suffer. In fact, many students who work do better in school than those who don’t work, because those with jobs need to be more disciplined and focused. In addition, a part-time job in an area related to your future career may prove to be helpful in getting a job after you graduate.
W: How about taking out a student loan?
M: Considering part-time work is often a better strategy for dealing with budget shortfalls. As student loans are relatively simple to get, it’s easy to use them as a crutch. Loans can be a help in an emergency or if you couldn’t afford to attend college without them. If you do take out a loan, remind yourself: one day soon you’ll have to pay back, with interest.

Question No. 11  According to the man, how can the student solve their money problems?
Question No. 12  Which of the following is NOT a financial goal for college students?
Question No. 13  Why is getting good grades one of the best ways for students to save money?
Question No. 14  How can students taking part-time jobs do better in school?
Question No. 15  What does the man think about taking out a student loan?