There are usually times in life were uncertainty strikes and requires urgent attention, saving money gives you the advantage in such times and you have to consciously plan and save ahead. The importance of saving money for students can not be overemphasized
The conscious systematically putting aside a sum of money will eventually help especially as a student when a necessary need arises. The funds in the safe are usually the only grace to fall back on when an unfortunate event happens or an opportunity arises.
Cultivating a saving habit is essential to building and maintaining wealth and greatly improving your financial management skills. There are several reasons and ways to save that you can do at ease, but first, let’s look at what Saving is
What Is Saving?
Saving is a sum of money set aside from income usually not used on current and regular expenditures for a period of time for a specific purpose or future use.
Savings can also refer to the money left after personal consumption expenditures have been deducted from disposable income that has been decided to be put aside for future use.
Saving money can also help solve unexpected events like an ailment, loss, or making an emergency trip.
Savings are kept in the form of cash or cash equivalents (e.g. Treasury bills, bank deposits, etc), which usually have minimal risk of loss and also come with a minimal or no interest
People save for different goals such as retirement, education, home or car purchase, a project, vacation, and business startup among several others. It may be for a long-term or short term goal
Ways To Save Money As A Student
I will identify effective and easy ways to save money as a student
1. Buy Second-Hand Clothes and Furniture:
Being that prices for brand-new items are usually higher than second-hand items, buying second-hand items is a great way to save money as a student. There are good quality items like clothes, jewelry, furniture, etc that you will be amazed to find in those charity shops and foundations around you at the cheapest price possible.
Another way to buy second-hand items is through police action, when the police are unable to trace an item’s rightful owner, they’ll put it out for auction and give the proceeds to worthy causes, you may have seen police auctions in American TV shows.
2. Stop Smoking/Hard drugs Intake
Smokers burn more than two grand a year on smoking. According to the National Cancer Institute, the average cost of a pack of cigarettes is $6.28, which means a pack-a-day habit sets you back $188 per month or $2,292 per year depending on where you stay.
If you are a smoker you can imagine how much money will be sunk into frying a lung, and worst for recreational drugs and legal highs cos that is quite expensive and may leave you always in debt.
3. Take Only student accommodation
Every student should understand the Importance Of Saving Money For Students. Student accommodations are usually the cheapest, It may be accommodation provided by the school or accommodations around the school. You also be creative and make out a place you can stay for the time being.
You can as well live at home if your school is in or around your home town, you save a whole lot of money by living at home.
Make sure you always cut rent costs as a student
4. Take Advantage Of Student Discounts
Make good use of your student discount privileges, being a student is obviously expensive due to the low-income students receive, so make sure every penny counts
Hundreds of retailers and brand names offer students discounts. But it’s not always made obvious by companies, so often students need to enquire.
5 Minimise Eating Out
Eating out is oftentimes more expensive than making your food at home, while buying a prepared meal out will be easy and comfortable it is sucking out funds from you.
For example, the $10 you spend on a single burger could be spent on buying the ingredients to make more than three burgers at home.
Don’t shy away from cooking, the more you cook, the more you improve your skills at it.
6. Use The Library To Read For Free
Rather than spend money on buying books, get to your school or local library whenever you want to read either for a test or for leisure and pick a book to read for free or at cheap rent
7. Only Cash Shopping, No Debit Cards
When you go shopping with cash you’re likely going to purchase items within the amount at hand, unlike the free spirit that comes with a debit/credit card because you know you wouldn’t get frustrated if you exceeded your initial budget.
You often time find yourself buying things that weren’t aren’t necessary, taking a credit or debit card out is the easy way to pay for the bill without facing the reality of the price and need for it.
8. Go To The Movies On Off-Peak Days
If you must see a movie, watch out for peak days and hours, weekends and evenings might feel like the best times to see a movie, but you’ll be paying a pretty sum to do so so you should rather opt for less demanding hours and days for your movies and always ask for students discounts.
9. Take a cheaper Bus Ticket
If you catch the bus every day, it is cheaper to get a bus pass instead of buying a ticket each time.
Always find a cheap way out of everything.
10. Take A Day Or Two Off Spending
Setting aside a ‘no-spend’ day may be difficult but can save you a lot of bucks as a student. You always spend money on things no matter how little it is, if you pause it a day or two, you will realize how much money it will save you and how unnecessary most of the spending was.
To achieve this, you may need to buy all the essentials you will need ahead
11. Shop For Food In The Evening
In the evening most sellers reduce the price on items especially the perishable ones so they won’t take it to the next day when the item may not survive.
It’s important to still make a list notwithstanding and be careful not to sop on empty stomach cos you may end up buying items on impulse and thereby exceed your budget.
Importance Of Saving As A Student
1. To a attain a successful financial future you must learn how to save, saving as a student gets you into the savings habit early
2. Most people lack trust in themselves, saving as a student helps you build trust and confidence in your abilities.
3. Knowing that you have a certain amount saved for times you will need it gives you a mental rest that ensures peace of mind.
4. Your savings in the long term can meet most of your goals in the future after college. You can secure your future, get to see life in its best view, and live a very fulfilling life
5. Depending on how long you save, you can use your saving to provide education for others, it may be your younger sibling or even your children
6. You can save for a short-term goal like traveling or buying a gadget, Savings are not just aimed at the long term. You can also benefit from savings in the short term.
7. It gives your security in case of an unfortunate event
8. When purchasing items that are of importance to you and the bill exceeds your budget, your savings can help cover the increased expense
9. If you save in a bank that pays interest, your money will increase and start working for you as you save.
10. You won’t have to be at the mercy of others, saving gives you options
11. People won’t have to detect how you live cos they decide your finances, saving makes you live life on your terms
12. You have some money saved somewhere? You are setting yourself up for future success
13. Take some financial burden off you and Lessen most financial stress
14. Saving help when you need to clear off a student loan when due.
15 It can help you get into an apartment when you need one after college
16. Take care of your ‘Gap year’, the year off between graduating college and starting your first job so that you can live your best life within the period
- See How to Stop Your Children From Overspending Money Online
- See 8 Healthy Financial Habits To Start In Your 20s
- Discover Tips to help college students save money
Every student should understand the importance of saving money for students, and understanding this will take off a lot of burden off your shoulder.
In this post, I have provided ways and the importance of saving money for students, I hope you find it useful.