Managing expenses and planning financially are issues that many college students are having to address for the first time.

Even though managing money is one of life’s most important skills, many people don’t have sufficient knowledge.

"Most students would probably benefit from additional financial planning assistance," said Larry Rodriguez, co-chair of Counseling and Student Development.

Setting up a budget should be your first order of business. This lets you see where your money is going and gives you a better perspective on how to handle your expenses. If you have trouble doing this on your own, you can use the In School Budget Worksheet at www.aie.org.

The first step to setting up a budget is determining your income. The best way to do this is by looking at your past pay stubs. Next, you will need to determine your fixed expenses, which are items that don’t change every month. This might include your rent, car payment, car insurance and tuition. It is a good idea to include savings in this category. Experts recommend putting at least 10 percent of your income into savings every month.

According to Schwab MoneyWise, "Time is probably a young person’s single greatest asset. So the sooner you start saving, the better." The website reported that saving $200 per month now could grow to more than $30,000 over 10 years. Instead of working for your money, your savings plus interest accrued has your money working for you.

Your variable expenses are the next part of your budget. Variable expenses include groceries, eating out, gasoline, clothing and entertainment. You can determine the average you spend on these items by reviewing your most recent transactions.

Then, compare your expenses to your income. Ideally the two should match, or better yet, your income will exceed your expenses. If you discover that your income is greater than your expenses, you should put that surplus money into an interest bearing savings account or money market fund. If your expenses are greater than your income, you need to review your budget and decide where to cut your spending. Usually this will be from your variable expenses.

After you have created a budget, you’ll have a better understanding of where your money goes and where you can trim expenses in order to save more money.

Whatever you do, don’t let a shortage of income lead to credit card debt. College is often a person’s first time for using credit cards. If you don’t know how to handle credit, you can find yourself in debt and with a bad credit history.

"It is best not to have credit cards if at all possible. You can get in over your head very easily," said Amanda Salinas, associate professor of Accounting at Palo Alto. "If you can only afford to buy something with a credit card, then you can’t afford to buy it." If you do end up needing a credit card, start with only one first. It is important to learn how to be responsible with credit before applying for additional credit cards. You should only use a small amount of the credit that has been extended to you.

The best thing to do with credit cards is to pay the full balance off every month. If you aren’t able to pay the full balance, you should always pay more than the minimum due each month. It is also important to always pay your credit card bill, or any bill, on time to avoid late fees and damage to your credit score.

If you have any questions about credit or want more advice, contact the Consumer Credit Counseling Service at www.cccssa.org. They offer free counseling to help with money management.

College is also a great time to start saving for your future. Although it seems a long ways away, it is best to start saving for retirement at a young age. Tax-favored retirement accounts such as Individual Retirement Accounts (IRAs) and 401(k)s are the best places to save for your retirement, because they are usually tax deferred and are often matched by your company.