Posted in: StudentsMarch 1, 2016 4:45 pm
Being a students presents lots of challenges, and one of them is learning how to budget your money. University is the first time that a lot of people have to manage money and pay for living costs.
When you have been living in the safety and security of your parent’s home all your life, leaving the nest and fending for yourself can be a bit of a shock to the system. However,looking after your money and spending wisely at university isn’t that difficult, the key is staying on top of things, and not burying your head in the sand. If you want to manage your student finances effectively then here are some helpful budgeting tips to keep in mind.
Don’t spend it all at once
You hear a lot of crazy stories about students who spend most of their annual budget or student loan in the first few weeks of University. Arriving at uni can be exciting, and there’s a lot of temptation to slash your cash, but try and exercise some control. The last thing you want to do is screw yourself over and make the next three years very stressful because you have no money.
Set weekly, monthly & annual spend targets
When you get to uni, (or preferably before) set yourself some spending targets. Once you have been at uni a few months you will have a better idea of your spending habits, so you can adjust your targets accordingly. Knowing what you can afford to spend each week, month and year can help you keep your finances on track.
Work out your income and your outgoings
After your first few months at uni, work out your exact income and outgoings. Think about all the outgoings you have such as tuition fees, accommodation fees, food spend etc and work out how much you spend on essential outgoing each month. Then figure out how much income you have and take away your outgoings. This should give you a good idea of how much additional spending money you have.
Use budget planning tools and apps
There’s loads of handy budgeting tools and apps that you can take advantage ones. You can use a student’s specific budgeting app, or just a general one. An app just might make your finances easier to manage. Try this free student budget planner, or something similar.
Use two bank accounts
It’s worth considering having two bank accounts instead of one. If you just have one bank account, all your finances can merge and become confusing. Have one account for all your bills and essentials, and one for your spending money. If you have a credit card, only use it for emergencies, don’t max it out and put yourself in a difficult situation.
Monitor and evaluate your spending
When it comes to budgeting, the best thing you can do is keep an eye on your spending. Evaluating your spending habits can highlight opportunities to save money, and keep you well informed as to the state of your finances.
Categorised in: Students
This post was written by John I