How to Manage your Money as a Student

900X420 _ Manage money

Many students get their first shot at being independent when they are attending a post-secondary institution. This is when they learn how to take care of their finances with minimal help from their caretakers.

Students who were taught financial literacy or have been practicing money management usually have an advantage over others regarding budgeting. Having a solid money management understanding at a young age can set you up for success in your future.

Money management is built by having consistent habits. There are many resources such as books, podcasts, and even financial literacy blogs that can help you understand budgeting and saving. We recommend students take time to learn financial literacy basics and build a solid financial foundation for the future.

 

Here are 5 things you can do to manage your money

 

Set a budget

Do you have a budget? Do you know your income and your expenses? Setting a budget that works for you is a good foundation for a solid financial future. A budget is simply a plan on how your money is spent. When you make a plan for the money you have, you know that your priorities are covered and therefore, do not have to worry. 

Open a savings account

Cultivating a saving habit is important to secure your financial future. Unexpected events happen, and a savings account can ensure your peace of mind in the midst of a difficult situation.

Savings can be allocated towards a specific goal or used in case of emergencies. You don’t need to be an extremely wealthy person to start saving. You can start from where you are, with what you have. The important thing is to cultivate the habit and remain consistent.

Pay off high-interest debt

It is easy to accumulate debt as a post-secondary student. From student loans to credit card debt, life as a student can get expensive. We recommend that you do your best to avoid debt but if that is not an option, always have a debt pay-off plan ahead of time. Do not accumulate debt on unimportant activities like eating out or buying the latest gadgets. Instead, do your best to live within your means so that you can have enough to cover your living expenses.

Research available scholarships at your school and in your community. Getting a scholarship will help offset or completely cover the cost of your education. In turn, you will be able to avoid student loan debt. 

Build your credit

From the moment you turn 18, you can start building a credit history based on your borrowing habits. Credit is the ability to borrow money with a promise to pay at a later date. It is important to understand credit and know how to use it responsibly.

Consider getting a part-time job

There are many advantages to working while you are a student. You get real-life experience that looks good on your resume and an extra income that can make managing your money easier.

You can choose to work part-time as you go to school or only work during the summer so that you have enough time to focus on your education. Whatever you decide, make sure that it aligns with your goals and does not affect your academics.