The next generation of IT leaders must learn to navigate the complexities of higher education financial planning and negotiation. Technology infrastructure, hardware, software, and services are very expensive to provide and will continue to be so for some time to come. Most CIOs have learned about complex IT finances the hard way--they were handed the budget along with the new job. The first step to financial success for IT leaders is to understand clearly the organization, financial structure, and processes of the institution. In this article, the author discusses the important institutional factors that IT leaders will need to understand. These factors include: (1) Revenues or the sources of funding for institutions; (2) Expenses or the cost for running institutions; (3) The economic environment; and (4) The political environment.