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: (Financial Management for Students)

Importance of Financial Management for
Students
Importance of Financial Management for Students
  • 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. (Financial Management for Students)

Ways to Spend in a Smart Way

Smart way to spend money
Smart way to spend money

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
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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
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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.

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
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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.

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.

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. (Financial Management for Students)

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. (Financial Management for Students)

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