Best Money Management Tips For Students

Most of the college and Boarding school students live on a budget, so managing the money is the highest priority for them or they will find themselves either broke or in a cycle of debt. It is essential to create an income-expense balance. Usually, they end up spending more than their incomes, leaving them with no option but to borrow at the end of the month.

Students need to be smart about how they spend their money. During this time, young adults learn the art of managing money. This is the first time they are taking control of their money and not depending on their parents to make their financial decisions.

Given below are specific tips for students on how to manage their finances:

1. Creating a budget is the first step towards gaining control of your expenses, practically for everything. Budgeting gives the big-picture of your money and helps you set you to determine your priorities. It is smart to create a category-wise budget of practically everything. For example, food budget, travel budget, utility budget and so on. It keeps you at the top of your expenses from the beginning of the month and helps you stay updated.

2. Estimating your costs in advance helps you understand essential costs and eliminating unnecessary expenses. Be aware of your daily expenses. Nowadays, there are multiple applications which you can download on your phone to create a budget and keep track of your incomes and expenses. Students usually are unable to differentiate between needs and wants. You must understand the difference and value the money you have, or you will end up in debt at the end of every month. The freedom you always wanted comes with responsibilities.

3. It is essential to set limits. There is a difference between being cheap and money-savvy. Be smart about your expenditure. Restrict yourself from buying unnecessary things. Keeping track of your expenses will help you identify wasteful areas which will help you in reducing them. Do not restrict yourself from having fun but avoid which you know will not matter to you in the long run.

4. Always remember that the budget you create should help you save at least some amount of money at the end of the month. The whole purpose of creating a budget and sticking to it is to help you save money, so you do not have to borrow from others.

5. Lending and borrowing are widespread among college students. They often borrow money from their friends but are unable to return them. Keep track of your debts and help you have given others. Keep adequate provisions for emergencies. Separate your income from the amount you have borrowed from your friend because someday, you will have to return it.

6. Budgeting helps you determine necessities and expenses on luxuries. The necessary costs are inevitable, but you can adjust your luxury expenses depending on your cash position.

7. Peer-pressure sometimes drives students to spend money unnecessarily. Stick to your low budget plan and do not pay on anything which is not essential. Remember why you made a budget and pay accordingly.

8. Stationary is necessary which cannot be avoided. Try buying stationery and college supplies in bulk rather individually. It reduces cost. Sell your old semester’s books back. You can also rent textbooks rather than hiring as they are not going to be needed after the semester ends. You can even second-hand books which are relatively in cost and saves you a lot of money.

9. Many outlets, such as Dominos, KFC, Starbucks, gymnasiums, etc., have student discounts and offers. Money saved is earned. Keep your student identity card handy because the stores will ask for proof. Try taking advantage of whatever gives you can.

10. Instead of depending on your parents for your monthly income, try earning some money to fund yourself.

11. Sell whatever is not useful anymore. There are plenty of sites such as eBay, Olx and craigslist, where you can sell your old stuff.

12. Keep aside a specific amount of money at the beginning of the month for emergencies. You never know when you might need extra cash. Please do not use it until and unless it is essential. Having self-control is the key to financial success.