Everyone knows that money is usually tight for students. Living on your own and not yet having a job usually means that you have to count every penny, and hope that your parents will help you out as much as possible. Some people want to break free from financial independence altogether and find their own way. This is a challenge, of course, but it’s not an impossible task.
For this reason, it is a good idea to develop savings hacks to help you keep track of what money you have. This article will lay out several things that you can do to try to keep your finances under control. First, though, we will talk about the importance of financial literacy.
Why Financial Literacy Matters for Students
Financial literacy is important for everyone, but especially for students as saving is critical when you’re tight on cash. Students are in the most difficult position of all, having just left their parents’ homes but not yet earning a living.
Being financially literate helps you understand and manage many aspects of your life more effectively. If you learn basic financial literacy, you will have a grasp of the aspects of money management that are essential to financial well-being. This includes the following things:
Learning How to Save for Emergencies
Learning how to save for emergencies is something that a large number of people fail to do adequately, and they often end up suffering as a result. You never know when emergency situations will come up, so you should be prepared for when they do. It is a good idea to get in the habit of saving on a regular basis. While this might be difficult when you are still a student, familiarising yourself with ways to do it early on is critical.
If you have a bank account, try having a certain amount automatically set aside each month for your emergency fund. It will make your remaining funds a bit tighter, but smart budgeting practices will help you maintain control and still be able to live comfortably.
Debt Management
Many people have debts, and this is normal. But the big mistake is not managing them properly. If you miss payments or cannot meet minimum requirements, your interest will add up and you will soon find your expenses snowballing. Also, learning how to manage debts while you are young will help you form responsible habits later on that will keep you on top of your finances in the long term.
You should also avoid falling into bad credit, as this can potentially affect you for the rest of your life. In fact, you can actively work on building a good credit score even while you’re still studying if you manage your finances wisely enough.
Budgeting
It is also essential that you get in the habit of making a detailed budget, and learn how to follow it. This means both making categories for the things that you spend money on on a regular basis and including all of your expenses in it.
You should study your budget carefully from month to month, and think about whether you have unnecessary expenses that you might get rid of (like subscriptions you don’t use, gym memberships, etc).
Useful Hacks to Save Money as a Student
There are also ways that you can save money while you are a student. It is important to figure out how to have more money as a student without working as it will make your time in university easier and more enjoyable.
Some of the hacks that students use to save money include the following:
Taking Advantage of Student Discounts
There are a lot of places that offer student discounts – everything from restaurants to hair salons to gym memberships. Always keep an eye out for these things.
Only Spend on What You Really Need
We are all tempted to spend money on extras, especially when we see something in the store that really jumps out at us. When you’re tempted to go beyond your budget, think about how much you really need the things you want to buy. You might skip them altogether, or find cheaper options.
Limit Your Restaurant Bills
University can be an exciting time as you’re just getting out in the world. Therefore, many people take it as a time to celebrate as they meet new people. You can still do this but pay close attention to things like bar and restaurant bills because they can really spoil your savings. Consider only going out to eat a certain number of times per month, or watching what you spend when you do go out. Give yourself a restaurant budget that fits into your overall budget and try to stick to it.
See How Many People You Can Comfortably Live with
We all know that it can be a pain to share a room, but this can cut down your rent by a huge amount, and the money you save can be used for other things you really need. Plus, it can actually be fun (and useful!) to share the joys and challenges of university life with fellow students. Remember, being a student is temporary, so there are some things you’ll have to put up with for a while. But it sure beats being broke.
Buy Used Textbooks Rather Than New Ones
These days, a lot of course material is going online. But students still have to buy textbooks. There is a big cost difference between used and new. As long as you can find books that aren’t completely incomprehensible due to other people’s notes, getting them can be a big help in terms of savings.
Consider Getting a Part-time Job
We all know that studying itself will take up most of your free time, but if you can spare a certain number of hours per week, you can build up a nice stash of money that will give you a much-needed savings boost by getting a part-time job. Perhaps you can even find something on campus that will allow you to spend part of your time studying while you work. This will also give you the experience of having some real responsibility before you graduate, which will definitely give you an edge later on.
Summing up
Student life can be a struggle in many ways. With studies, a new environment, and new friends, everything can seem overwhelming at times. Not everything about it has to be, though. Getting control over your finances can be the first step to feeling like you’ve got control over your life in general. If you know how to budget and save properly, you’ll still be able to do all the fun things that university life has to offer and not have to worry about going broke in the process. Plus, it will teach you valuable money-saving skills for the future that you will be glad you learned early on.
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