Money Management for
Students
STEP 1:
 |
Why Managing Finance is
Important for Students?
Synopsis
While majority of
students leave with large debts and others with small debts, the amount of debt
acquired will depend on how well you have
managed your
expenses when you’re still studying. If you don’t want to pay for a huge debt
and save money while you are a student, you should know how to manage finance
is important. Through financial management, you will not just be able to save
money from paying large debt, but also you will reduce your expenses and avoid
running out of budget while you are still studying.
Importance of Financial Management
for Students
Managing your
finance is very important especially for those who don’t have enough money to
pay for their studies. Although students find this task as a hard thing to do,
it is wise to understand the basics of financial management as this can also
offer you a better future. For you to be successful in financial planning, here
are some of the things you should take note:
·
You should always save a portion of what you have
earned from your part-time jobs or student loan checks. If you want to make
more money, you can try investing some of it to pursue your passion.
·
As a student, you should also be updated with the
current economic cycle because this pertains to the best times to borrow money.
There are times that the interest is low. If you want to know the best time to
invest or reinvest your money, then find out when the rates of interest are
high.
·
You should understand that payoff of selecting an
opportunity over another. You should also know financial net worth most particularly when creating financial
decisions like taking part-time jobs and frivolous purchases.
·
You also know how to create your own financial goals,
weather setbacks, and realistic plans.
·
Taking advantage of the investments that are
tax-sheltered while you are still young through the programs of employer
benefits is also a good thing.
·
Developing key financial expertise in terms of
earning, investing, spending, and
knowing the financial climate can also offer you benefits.
Perks of Managing Finance
In terms of
personal finance problems, there are tons of college students who depend on some
family members or parents to help while others spend student loans up right
away. One of the perks you can enjoy from managing finance is that you will be
able to save and manage money wisely. With this, you will be able to have extra
money, which you can use for important purposes like projects.
There are other
things you can experience once you have learned how to manage your finances. If
you want to be successful in the future, this can be your stepping stone.
Although financial management is not an easy thing to do, this can be practiced
daily. Financial management is a step by step process. This can’t be done
overnight especially if you don’t mind spending money because you know that you
can pay your debts after having a job. If you find it hard to manage your
finance, asking for some tips from your friends or anyone you know can be also
helpful.
STEP 2:
 |
How to Plan Your Spending
Smartly?
Synopsis
Entering college
may sound exciting for some students. But, others find it an intimidating
venture for various reasons. Graduating from high school and entering a
university or college is a huge step and oftentimes, many students taste
freedom from the real world and venture out from the safety and warmth of their
homes.
There are several tasks that should be juggled so that the college of
students will be successful. From attending classes and studying, to
maintaining and networking finances, there’s much that college students should
consider.
One of these is
to spend money smartly.
Ways to Spend in a Smart Way
Spending smartly is not something that most students do. More
often than not, many spend money without thinking about their budget or
consequences of spending a huge amount of cash. If you want to be smart with
spending money while you are studying, these are some of the ways you can take
for consideration:
·
Enroll in Meal
Plans
One of the ways
to save money is by enrolling in meal plans. A meal plan is program that is
pre-paid. This is where you pay a particular amount of money for your meals on
your campus every semester. In addition to that, meal plans are extremely
convenient. You can just pick your snack or lunch whenever you like and you
don’t need to cook for yourself.
·
Share Expenses with a Roommate
Another option
you can consider when reducing your expenses while studying is to share
expenses with a roommate. If you are living in a dorm, you should expect that
you will live in a close quarter with another student. A lot of expenses can be
shared between your roommate. Some of these are groceries and furnishings.
·
Look Out for Impulse Spending
This can be very
tempting to spend money on things you like but don’t require. It is essential
to take a shift with your spending because you will need cash for more vital
things including clothing, school
supplies, and
books. Instead of spending your cash on some items, watch your spending. Then,
use this on those that you really need the most for your daily living.
·
Know What Is Non-Essential and Essential
Another thing
that most students can’t do is to determine the difference of their needs from
their wants. Because of having no knowledge about non-essential and essential,
some students waste their money on some things that will just waste their
money.
Essential items
are those that you require for daily living such as hygienic products,
clothing, and food. Non-essential items, on the other hand, may include
electronic gadgets, trip to movies or pair of shoes when you already have
several pairs. Even though this can be difficult at first, curbing your
spending is essential as this will let cut off some things that you don’t need
for your budget.
·
Saving Money on Various Supplies
Saving money
from supplies can be easy most particularly if you’re living on campus. Before
you go straight to the campus bookstore, you should shop around on nearby
bookstores for you to know if they are much cheaper or not. With this, you can
save an amount of money on your textbooks that you will use for your next
semester. In addition to that, you can save yourself even more money if you
choose downloading your textbook to a tablet device or an e-book. If you are
searching to save on some supplies including 3-ring binders as well as loose
leaf paper, consider purchasing in bulk from a store that caters
office supply. Retailers provide you a discount when you purchase a
bulk amount of
supplies. If all fails, try online sites. This can help you save money from
considering discounts.
Bottom Line
Know how to spend
smartly may be difficult. But, this can offer you benefits in the long run. If
this is your first time to manage your finance, those mentioned ways above can
help you big time. If you can’t manage your expenses successfully, keep yourself
away from places that trigger you to buy things that are not essential for your
everyday living. Take note that there’s a difference in knowing what you want
and need. So, be wise with your money while you are studying because this gives
you the chance to save an ample amount of money, which you can use for your
future expenses or other important purposes.
STEP 3:
 |
Creative Ideas to Cut Down
on Expenses
Synopsis
Cutting down
expenses is not simple for some. However, this is essential particularly for
those who don’t want to end up having no budget for the coming weeks. The
process of cutting down expenses can be done by considering some creative
ideas, which are perfect for anyone no matter what college or university they
are into and how much money they have.
There are several
ideas you can consider for cutting down your expenses while studying. With
these, you can guarantee that you will be able to enjoy savings. Below are some
of the creative ideas you may take for consideration:
Planning your
budget can actually help you cut down your expenses. This does not only let you
list down your weekly or daily expenses, but also you will be able to monitor
if there are some things you can reduce
Creative
Ideas for Cutting Down Your Expenses While Studying
. If you don’t
know how to plan your budget, there’s a great way for you to make one. First
and foremost, you should know your budget. Then, list down your daily expenses.
Limiting yourself with a particular expense daily is a good idea. It is because
this will also limit you from buying things that you will not every day. Once
you have planned your budget, you can save a huge amount of money.
Purchase Only What You Need
Purchasing only
what you require is also a good idea to cut down expenses. When purchasing,
determine if it is a need or want. Once you have determined that it is a want,
disregard it. Buy only what you really need because this can reduce your cost.
Shop for Textbooks Smartly
Textbooks are
really important for your studies. However, when cutting down your expenses, it
does not mean that you don’t need to buy textbooks. You can buy your needed
textbooks. But, seek for various bookstores that will give you discounts or
cheaper deals for your required textbooks. With this, you will be able to
reduce your expenses as you will get cheap textbooks with the same quality as
expensive ones.
Take Advantage of Discounts
If you are a
student, there’s also a great chance to enjoy discounts. There are stores or
shops that can provide you discounts. Even some stores offer
10% discounts or below, it is
still a big thing especially if
you want to
save money. If you are
not fond of local shopping, there are
also websites that
can
offer you discounts. The
only
thing you
should is to
search for them on
Google. If you don’t know which is reliable
or
not, there are websites that
can
help you find such discounts.
Be Smart with Your Transportation Costs
When it comes to
transportation, you don’t have to buy a car or a particular vehicle for your
daily transportation. But, if your parents gave you one, then you may use it
sometimes. Gas can be costly. However, you always avail discounts if there are
available ones. If you have bike, you can use this instead of driving a car.
Through this, you will not just avoid gas expense, but also you will be able to
get rid of traffic. If you are living near your campus, walking can be a good
idea. This can be also a good form of exercising.
Cook Foods or Buy Cheap Ones
Buying foods from
restaurants may sometimes increase your expense which might let you spend more
than what you have budgeted. So, if possible, cook foods or purchase cheap
ones. This will help you save money while
eating healthy
foods. Cooking foods at your dorm or in any place you’re staying can also let
you practice your cooking skills.
There are other
things you can try for cutting down your expenses. If you want to be successful
with what you aim, then take this seriously and stick with your planned budget
or expenses as this can make a difference.
STEP 4:
|
Keep Credit Card or Debit
Card Away
Synopsis
For majority of
college students, acquiring their first credit card is a passage’s rite. This
is the first step in making your credit. This also lets you build your
financial independence. But, unknown to almost all students, when it comes to
their opportunities in the future, creating a positive credit history is very
important like a strong GPA. However, students still need to learn to keep
credit card or debit card away if they don’t want to end up paying a huge
amount of money after or before graduation.
There’s a huge
difference between acquiring a credit card and applying for each credit card offer,
which is made available for every student. If you are a student, you probably
considered student loans. Therefore, do not be tempted by each free T-shirt
offer you see.
How to Keep Away from Credit
Card or Debit Card
It is because you
will find yourself having more debts if you will make the most of your credit
card. One of the basic principles of managing money is to avoid spending cash
more than what you can afford. If you have some credit cards, this becomes easy
to get into a huge amount of debt, which you will have a hard time to pay off.
There are some
tips you may consider to keep away from credit card or debit card. One of these
tips is to buy your needed items with your cash. If you still have cash on your
wallet or pocket, use it instead of your credit card. This will help you avoid
using your credit card. But, this does not mean that you should not use credit
cards. You can always use them, but do not abuse them. Abusing credit cards or
debit cards can be a total catastrophe particularly to those who always
purchase things using these.
Another thing you
may consider to avoid credit card is by avoiding places where you will be
tempted to buy things that are needed for your studies. When covering expenses
for your studies, do not make use of credit cards or debit cards always. If you
can pay it with cash or loan, then consider it as your option. Though having a
credit card can help you build your credit history in the future, but once you
have failed to pay your debt, this may ruin your credit history and might hurt
your credit score in the process.
Before applying
for a credit card, knowing or understanding it is also important. This will
help you consider avoid the things that you should or not do to get rid of any
inconvenience.
STEP 5:
|
Allocate Some Saving for
Emergency Use
Synopsis
Saving money
should not only be for your future expenses for your studies. You should also
save money for emergency use. This will help you avoid borrowing some money
from your friends or parents. This also let you get rid of acquiring a loan
that can add up to your debt in the long run. So, allocate some saving for
emergency use as this can make a difference.
How to
Allocate Some Saving for Your Emergency Use
Allocating some
saving for your emergency use may not be an easy thing to do. But, there are
ways you may consider. These are as follows:
·
Separate Your Savings for Emergency Use
If you find it
hard to save for your emergency use, you may consider separating your savings.
You should separate some of your money for your other purpose and for your
emergency use. This will help you avoid using the money for some things that
are not useful.
·
Deposit It Into Your Bank Account
If you are
always tempted to spend your saving on various things, deposit it into your
bank account. Once you have deposited it to your bank account, don’t check it
regularly because this will give you temptations to spend it just to purchase
things, which can be an extra expense on your budget. Therefore, if you don’t
want to spend saving for emergency use for things that are not useful and
required, then deposit it immediately into your bank account.
Through considering
those mentioned above, saving money can be done easily. So, if you want to have
money that you can use for emergency purposes without relying on some people,
then keep in mind those abovementioned.
Benefits of Allocating Some Saving for Emergency
Use
There are many
benefits you will enjoy once you have allocated some of your saving for
emergency use. One of these is that you will be able to avoid loans, which can
pile up your debts. This will also let you get rid of borrowing money from your
parents or friends. The best thing about having money as your emergency cash is
that you can use it anytime for important purposes. If you have this money, all
you have to do is to withdraw it or get it in your own safe.
Although
allocating some saving for emergency use is not a requirement for all students,
this can help anyone minimize their expenses or debts as they will be using
their savings instead of their present budget, which can be costly.
STEP 6:
|
Track Your Spending on a
Diary/Spreadsheet
Synopsis
One of the keys
to enjoy savings while studying is by tracking your spending using a
spreadsheet or a diary. With this, monitoring your expenses will never be tough
for you. Also, tracking your spending on a spreadsheet or diary can also let
you review the things you have spent or purchased.
Tracking your
spending is now made easy. Depending on your preferences, you can make use of
your laptop or any device. You may also take note of your spending on your
diary.
How to Track Your Spending
Tracking your
spending is not a hard thing to do. In fact, it is very simple. The only thing
you need is a diary, pen or your personal laptop if you will use spreadsheet.
Once they are ready, the next thing you should do is to list down your daily
expenses. You can plan ahead if you want. By writing down your spending in
advance, you can easily track down everything. Also, you will know your
limitations as you have already budgeted your money.
When tracking
your spending on a diary or spreadsheet, you should always remind yourself to
list down everything you have spent. No matter how much you have purchased, it
is wise to write down what you have spent.
The reason behind
it is that this can let you monitor if you have successfully budgeted your
money or you have already purchased something that cost more than what you have
budgeted.
Tracking
everything you have spent may be a boring job for every student. But, if you
really want to save money, then you should start tracking your spending.
Besides, this is not something that will consume too much of your time. The
best time to track your expenses is after you have purchased what you need or
require.
STEP 7:
|
Make Some Extra Cash Online
Synopsis
With today’s
advancement of technology, making some extra cash online is now made much
easier and possible. If you think your budget is not enough and you don’t want
to add up your debts, you may consider making some extra cash online. With
this, you will avoid borrowing money and you can get rid of debts.
Ways to Make Some Cash Online
If you want extra
income while studying, there are ways to make some cash over the internet. Some
of them are:
Consider Paid Services
At present, there
are companies that can pay you for doing something. If you can make surveys,
you can earn some money from it. However, make sure that your chosen company is
reliable and won’t require you any upfront payment. There are other paid
services that you can consider online. All you need is to seek for some.
Sell Products Online
If you have
passion in selling products, you can launch your own website and offer
products. Launching your own website does not mean to pay for hosting or
anything that would let you reach your targeted audience. You can try the free
blogging platform like WordPress. Or, you can make a page on your Facebook
account where you can feature your offered products.
You may also try other social
media sites.
Be a Freelance
Whether you are
fond of writing or designing websites, you can now enjoy the freelance world.
You can be a freelance writer or web designer. There are several companies and
websites that hire freelance. If you want to make the most of your skills, then
you should not dare to miss being freelance.
This will give
you the chance to make some cash while improving your skills. However, when
searching for a company or website, make sure that
they are
reputable or reliable. The reason behind it is that there are some websites
that will just use your skills for scams. So, be careful when choosing one. If
you don’t have any idea on which to consider, ask for some assistance from your
friends or other people you knew.
There are other
ways to make some cash online. It all depends on how you will take advantage of
these opportunities. However, when making extra cash online, never forget your
studies. You still need to focus on your education while you are earning. With
this, you can make cash while acquiring the best education, which could lead
you to your future.
STEP 8:
 |
Opt for Part Time Job After
Classes
Synopsis
Free time may be
most favorite part of every student. However, if you want to save some of your
expenses, you may consider part time job after classes. This will help you earn
money and will also let you make the most of your free time. So, if you don’t want
to waste your time and earn some cash, opt for part time jobs.
Making the most of your free time by considering part-time jobs is never
been a bad idea. This can give you many benefits in the long run and can also
make you a better student. But, how you can seek for part-time jobs?
Making the Most of Your Free Time
by Considering Part-Time Jobs
There are various
options you may consider when it comes to part-time jobs. You can search
locally or online. One of the known part-time jobs considered by most students
is by applying for a crew in a particular restaurant or stores. There are tons
of food chains and restaurants that accept part-timers. You can shop around in
your local area. For some, this can be embarrassing, but once you have received
the fruit of your effort, you will be more inspired to study and take it
seriously.
There are other
options you may take for consideration. You can look online as there are also
websites or companies who seek for part-timers. If you can opt for part-time
jobs online, you schedule is much flexible, but since you need to concentrate
on your studies. You should do your obligations after classes in order for you
to avoid any inconvenience. But, one of the things you should take note is the
reputation and reliability of the company you’re working with. Through this,
you will be able to avoid those that will not pay your services. So, if this is
your first time, consider shopping around all the time to deal with a good company.
You have to bear
in mind that making money can be tough. So, if you don’t want to throw or spend
money on things that will just waste it, then know how to pay importance with
your money and try earning some of it. With this, you will be able to know how
hard it is to make money.
STEP 9:
|
Buying What You Need, Not
What You Want
Synopsis
One of the best
ways to save money is buying what you need, not what you want. Through
distinguishing your needs from your wants, you will be able to purchase items
in a smart way. Unfortunately, not all know the difference between their needs
and wants. That is the reason why some end up purchasing their wants rather
than their needs. So, before you shop, the first thing you should do is to find
out your needs and wants.
More often than
not, students tend to buy their wants instead of their needs. It is because at
the first place, they don’t know the difference between them. Needs are
something that you require for you to stay alive. Some of these are foods and
clothing. Other than these, transportation and shelter are also considered to
be one’s needs. But, these belong to the slightly less needs. The reason behind
it is that anyone can stay alive and survive in this without shelter or
transportation as long as they are eating every day.
How to Know What You Need
and What You Want
For students,
some of their needs may include books, clothing, foods, and a shelter.
Everything else is already considered a want. Wants are those things that can
offer you pleasure or entertainment like gadgets. Although you also need mobile
devices for communication and a laptop or computer for assisting you for
homeworks, these are not really considered as needs. It is because there are
various sources that can offer you information like books. You can also
communicate by trying the traditional way of communicating with others.
There are other
things that are considered as wants. One of these is to have a car. There are
several means of transportation you can consider. You can consider using your
bicycle if you want to avoid gas expenses. Or, if you really want to drive your
car, always ask if there are discounts for students. Although not all can offer
you discounts, but majority of gas stations may give you the chance to save
money.
Once you have
determined what you need or what you want, you will be able to enjoy savings
because this can offer you the chance to reduce your expense from buying your
wants. So, if you don’t want to pay a huge debt, consider knowing the
difference between wants and needs first.
STEP 10:
 |
Saving Money Through Student
Discounts
Synopsis
As a student, you
should know how to take advantage of student discounts. Through this, saving
money will never be difficult as you will be able to spend less by acquiring
the perks of having student discounts.
Unfortunately, not
all students knew how to make the most of student discounts. That is the reason
why others can’t save enough money while they are still studying. You have to
keep in mind that you are not a student forever. So, as long as you’re a
student, try saving money through student discounts.
How to Save Money through
Student Discounts
Saving money with the use of student discounts is simple and can be done
in simple ways. If you want to reap the benefits of being a student by using student discounts, then keep in
mind these following:
·
Know Shops that Offer Student Discounts
Not all stores
or shops in your local area offer student discounts. If you want to acquire
discounts, you should know the shops that provide student discounts. Whenever
you are shopping around, always ask if they are offering discounts for
discounts. Others don’t have the guts to utter these words because they are
shy. But, you have to take note that there are reasons why student IDs were
made. They are not just for your personal identification, but also they can be
useful when taking advantage of the discounts offered by some stores. If you
want to save money from these discounts, you should always bring your ID for
you to avail discounts.
·
Search Online for Student Discounts
Student
discounts can’t only be found locally. With the advancement of today’s
technology, anyone can acquire student discounts online. There are websites
that can help you seek for those online stores that provide cheap deals or
offers for students. However, make sure that your chosen websites are reputable
and will offer you real discounts. Before you make any transaction, you can
consider asking some questions first. This will help you lead to the right
direction.
·
Travel Cheaper
If you are the
type of student who often travel for study purposes or for pleasure, you can
travel cheaper. More often than not, travelling can be costly. But, if you are
a student, you have the chance to travel in a cheaper way. There are also
websites that can point you to cheaper flights or travel. You have to take note
that it also makes a difference to travel with student discounts.
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