Students and money seem to be in constant difficult relationships. It is easy to see why, though. For most students, their college years are the first time ever that they have some sort of financial independence. It is the first time for them to try managing their own money by themselves. For many, it means that all restrictions are lifted, and they finally can do, buy, or eat what they want. For others, it is a period of immense stress. Young people want to do a good job with their money, but they just don’t know how to achieve it. Overall, both groups often fail in their first attempts at managing their own budget. Financial literacy is not something you can learn from your first try. Sometimes it can take years of experience (and failures) to learn those lessons. Lucky for you, we have prepared an easy guide of useful budget tips. This is financial literacy for students 101. Let’s start.
1. Budgeting
Yes, you must have heard this odd word a million times by now. However, what does it actually mean, and how can you do it? Well, that is a great question. By making a budget, you get to track all your incomes and spendings. You set a specific financial goal for certain periods of time, whether it is a month or a quarter, and try to stick to it. The concept of budgeting is that easy, to be honest. However, making it work and sticking to it is the hardest part of all. Fortunately, numerous apps can help you with that.
By budgeting, you get to see how much you tend to spend on things like clothes, coffee, or food in a week, month, etc. You see where your money is going. This knowledge allows you to cut unnecessary expenses, which you will definitely find. Next, you can redirect your income to more useful areas, like to pay someone to do my homework online or the subscriptions you actually need.
2. See The Difference Between Want And Need
This tip is so important to learn early in life. There is a very big difference between things that we want and things that we need. We may want to have a year subscription on Netflix. But what you probably need is a subscription to an online library. You may want a fancy suit, but what you need is good and nutritious meals every day. You can see where I am going with that. Overall, it is hard to prioritize things that seem less interesting or shiny to you. However, know this, when you buy what you need, you can invest in yourself and your future. You take care of your needs first to make room for your wants later in adulthood. There will be a time when you’d be able to afford expensive dinners and clothes. Now, you need to concentrate on what you need to do to achieve that.
3. Seek Shortcuts
You’ve must have heard that there are no shortcuts in life. It is surely true. However, the same rule doesn’t apply to finances. You can save a lot of money by looking for better options. First things first, don’t buy brand new textbooks. Many websites offer used textbooks that are still in perfect condition. Former students could even leave useful notes for you to find. Also, while in school, you can seek any financial help you can get. Apply for grants, awards, scholarships, and paid internships. If you live on the campus, eat there. Use your special discounts. See the best ways to pay your tuition fees, so you don’t have to pay extra.
When it comes to groceries, you need to act smart. Buy items on sale, though, only when you actually need them. Buy in bulk – it is much cheaper. Cook at home more often than you eat out. You know how much money you can save by doing so if you keep a budget. Also, do get yourself a travel mug and make your coffee at home. Again, when you see how much money monthly you leave in coffee shops, you will order that mug right up.
4. Have An Emergency Fund
Having an emergency fund can be such a relief during any crisis, small or big. Overall, you need such a fund in case something unpredictable happens, something that was not in your budget for the month. You don’t have to have much money saved during your youth. Most emergencies you have are more likely to be minor, such as a burst tire, an urgent need to order an essay online, or a broken phone. However, as you get older, your emergencies also grow. Further, you will have to have emergency funds for your house, cars, children, and so on. It is better to learn saving when you are young, so you won’t have to worry further in life.
