If you want to know how to manage your finances as a student then read through this post for 10 Finance management tips for students.
Managing your finances as a student can be tricky. The fact that you can educate yourself about responsible ways to manage your money is great news.
Being accountable for your finance helps to avoid mistakes that can take a while to recover from. Therefore, you should learn money management early so as to be on the right track always.
Without wasting time, Let’s proceed to ways to manage your money as a student.
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Ways On How To Manage Your Finances As A Student
Learn To Budget
As a student, the first step on controlling your finance is to set a budget. Although the thought of mapping out a budget can be overwhelming at first but note that it is important and you can try an easy way to go about it.
A college budget is a powerful tool to make your money stretch longer. When you keep track on how much income you get and where it goes to, you can control how you spend.
Set your priorities right. This doesn’t mean you shouldn’t have fun while in school but you must make sure your fun does not hold you back from paying your bills.
The basic college expenses include: tuition, rent, textbooks and class supplies, car payments (or the cost of public transportation), toiletries, phone, haircuts, and certainly, food.
When you’ve successfully made a plan for your income, you can relax, knowing you have covered your priorities.
Keep Track Of Your Expenses
One of the ways on how to manage your finances as a student is tracking where your income is going. Constantly take a look at what you spend on and see how you can cut some items or improve on your spending.
It is one thing to create a budget and another is sticking to it. There are apps you can use to on your phone to track your expenses, one of them is Mint.
You can even track your expenses on paper as well, to check if they go with your real-world experience or need adjustments.
Learn to Track expenses by date. For instance, if your plan for food monthly is $120 but you finish it up in two weeks, you know you should really make adjustments.
Another good reason to check your expenses is to avoid fraudulent charges in your account. If you find one, then contact your bank immediately to reverse it.
You can use the help of budgeting apps. Plug in your daily or weekly spending to have a quick view of how your expenses goes. Whether you are overspending or not.
Budgeting apps like Mint, Wally, or Acorns can help track your budget and expenses.
Open A Savings Bank Account
Most people struggle with this, so it’s vital to develop this habit early. It sometimes seem tempting to spend your income first and then save leftover money.
Instead, develop the habit of paying your bills first, save some money and then keep few bucks for yourself. Warren Buffet once said, “Do not save what is left over after spending, but spend what is left over after saving.”
Now that you’ve taken care of your budget, identify areas where you are liable to spend less and save towards goals that are longer-term.
Here’s a few ideas on how to go about it:
- Think of taking a much lesser meal plan if you find out you usually have money left in your account.
- Purchase or rent used textbooks instead of getting new editions at the bookstore.
- If you might have need for a new tech for class, rather than going for a brand new model, try the refurbished one.
- Try riding your bike, walking, or taking a campus transportation instead of paying to fuel, insure, and park a car while in school.
Always Review Your Budget
How to manage your finances as a student? Make it a habit to review your budget. Most financial experts asserts that it is best to evaluate your spending every week against your budget.
Yes, as a student, you have a lot on your plate but spare a little time to review your budget. To check if everything is going out as planned.
Ensure To Pay Your Bills On Time Every Month
Another tip on managing your finance as a student is paying your bills on time.
This comes with excellent benefits; It helps you stay away from late fees and prioritizes necessary spending. A great on-time history of payment can as well lift your credit score and enhance your interest rates.
Stop Eating Out
Challenge yourself and stop eating out for as long as one month and see how your much you will save.
This is the biggest financial problem students face and it is also one of the easiest way to take control of your various expenses. Get rid of your habit of eating out.
It’s totally okay to frequently splurge at an amazing restaurant but you should know that you can add up to your savings if you start cooking at home or take a bagged lunch to school rather than eating out every day.
It will shock you to know how much you’ll save by cooking small meals at home.
Related: Best Money Resources For Students
Start Investing Now
Investment is not only for adults but for students too. The sooner you start to invest, your investment will yield more interest in no time.
If you start at an early age, you’ll have to invest little money to achieve your retirement goals. Investing is even more simple than you think.
Do your research and open an online account, either an IRA or investing in the S&P 500 with a minimal amount of money.
Then, place withdrawals from your bank account to your investment account every month.
Take A Part-Time Job
Getting a part-time job is one of the ways on how to manage your finances as a student. There are numerous benefits to working while you are in school.
Finding a nice college job will make it easier to manage your finances and gain work experience while schooling. You might even have an advantage from tuition assistance and a lot of other employee benefits offered at the company you work.
If you decide to work during summers only, use the summer job to your advantage. Consider taking extra shifts in order to make a little more money. You can likely take an internship-if it’s done for a fee.
You might consider the option of working full-time and going to school part-time to avoid being indebted. This schedule might be tight but let’s get to the good part, you can plan your transition from school to the workplace with this work experience.
Discover: Tips to help college students save money
Start A Direct Deposit
To avoid tampering with your savings or spending more, you can set up three bank accounts: one for savings, one for spending, and one for bills
Deposit the money you’ve planned for each category into these accounts. By this, you can track your money and use it wisely. Once your spending balance is down, It’s down!
Use Your Credit Cards Wisely
Make sure to use your credit card to pay for only items you have budgeted for.
It is typical of students to swipe their credit cards to purchase items they never planned for. It could be on the sight of beautiful clothes, shoes, or other items.
Curb incessant use of your credit card. This is one of the ways to control your spending.
Don’t Over Borrow
This is another great finance management tip for students. If you must borrow, whether it is a car a student loan, you must make sure you are not borrowing out of your means.
This can be very dangerous.
Related Articles
- Read: How to save money as a student: Effective tips
- See: High Paying Jobs for Students With Loans
- Related: Best Money Resources For Students
- Discover: Tips to help college students save money
- Check: Key Benefits of Paying Off Student Loans Early
- Read: Top Best Budget Apps To Manage Your Finances In 2021
Final Thoughts
That was a long on how to manage your finances as a student.
We know success doesn’t just happen, so try as much as you can to work on these habits.
As a student, you may not have so much money at the time. But choosing the right financial path while in school will be of great help, to enable you make smart decisions while you grow up.
If you follow these 10 finance management tips you’ll be able to create a future with a strong financial foundation.
Learn More: Eight Best Debt Management Apps
