Our college years are full of lessons, both inside and out of the classroom! A major part of why our college years are so formative is the sheer number of novel experiences to encounter. For many, these will be years of exploration and self-discovery. New friends, hobbies, and academic interests are part of the magic of student life!
For most students, this is the time when they first move out and get a taste of independent living. However, once we move on from high school and enter the world of higher education, there can also be many new and unfamiliar responsibilities for students to get used to. For many students, the most pressing of these new responsibilities will revolve around managing their finances. Thankfully, there are tonnes of effective tips and tricks out there to help students get to grip with personal finance management.
Here are some of the need-to-know insights into the world of personal finance management for students that’ll help you make the most of your education!
The first step in any plan for responsible money management is creating a solid and realistic personal budget! The best place to start is by simply noting down the total income and output of your personal finances. Begin by making a list of all your sources of income and tally up their total. Once you’ve done that, you can move on to making a list of all the regular expenses you encounter throughout the month.
These regular expenses typically include things like rent, tuition fees, and subscription payments. Once these have been accounted for, you can estimate how much you need for food, socializing, and extra costs that always crop up. It may sound obvious, but without a clear budget that you can easily visualize, it’s all too easy to spend beyond your means only to realize once it’s already too late!
Open a savings account!
Many students find themselves slipping into the habit of overspending. This is especially easy if all your money is sitting in one account. A top tip to avoid veering into overspending is to create a separate savings account in which you deposit the money you have not allocated as part of your budget. Keeping these funds separate from your disposable income will help train your saving skills and draw a clearer line between where you’re saving money and where you’re spending money.
Check for student perks!
Many banks will offer students special perks when it comes to their personal financial management. Student checking accounts often offer their holders very low levels of interest rates for student loans, meaning that you can have peace of mind throughout your studies without constantly worrying about how you’re going to pay off your debt.
Student bank accounts also often offer their holders perks when it comes to spending. Banks often pair up with companies in order to offer their customers better deals in all areas of life. This can lead to savings in the form of supermarket loyalty programs, online shopping discounts, and air miles, and seasonal offers. Always keep up to date with what perks your bank is currently offering its customers in order to snap up the best deals!
Plan for the future
Making the most of your student years doesn’t have to mean forgetting about the future! While living the student life, it’s a great idea to look over the basics of what will arise in your future financial management. Things that seem unimportant while a student may become very important in the future.
Many people are not involved in life planning. But it helps a lot in making important decisions. This is what Eve Maygar, specialist of the PapersOwl Education Platform, says about it “The future is never just one choice. It’s a thousand. And they never stop. You will choose your future every day of your life. And should you wake up one day to find that you regret the choice you made the day before, and then make a new one. Don’t worry about whether you might be wrong someday. Worry about whether you’re right now. Tomorrow can wait. .”
Take credit, for example. Managing credit may seem like some distant problem that can wait for the future, but it’s best to have an idea of what lies ahead. Reckless spending from your checking account as a student could have a negative impact on your credit score later in life. Getting ahead of the curve when it comes to personal money management will help prevent you doing anything that could come back to bite you!
Look for Student Grants
While paying for tuition fees can prove burdensome, being a student does open the door to many opportunities for financial support. There are many grants and bursaries available to students at all levels of education, with a variety of different criteria. Some grants are made available on a merit basis, and with these, hard-working students can squeeze the most out of their top grades!
Other scholarships are made available on a needs basis, meaning that you’re eligible as long as you can prove the need for financial aid. For these, you don’t need to worry about being an ultra high-achiever, as they are intended to make sure no student has to worry about their personal tuition finances.
There are many other niche scholarships waiting to be found out there, for students of particular backgrounds, hobbies, or educational intentions. Whatever your profile, it’s always worth researching whether or not there are any financial support options for a student like yourself. Being awarded a bursary could make your student life a whole lot easier!
These are just a few of the most important things to bear in mind as you approach managing your personal finances as a student. Everybody’s financial situation is unique, but the basics of responsible personal money management remain the same for everyone. With these tips by your side, it’s up to you to begin creating effective financial goals that will get you on the path to saving money. Maintaining good personal finance as a student can act as the ticket that sets you up for life!