Top 7 Tips to Manage Finances for Students

Top 7 Tips to Manage Finances for Students

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The time you spend in college is perfect for learning how to become more independent and responsible. Students get to manage their life in a dormitory, build relationships, and pay their bills while studying. It is a challenging yet exciting period. 

However, it is rather difficult for the vast majority of students to manage their finances. So, we have come up with the top seven tips that will help you do it efficiently.

Plan Your Budget

Start with the basics: analyze your income and necessary expenses, such as rent, tuition fee, food, bills, and so on. Thus, you can calculate the minimum sum you need. 

After that, divide your expenses into categories. For instance, you can name them

  • critical (rent, tuition fee, food, bills, etc.); 
  • sports (gym membership); 
  • entertainment (cinema tickets, eating out, etc.); 
  • travel (car expenses or public transportation); 
  • savings. 

We will view the last category in detail further. 

Analyze how much you spend on each category to see where your money is going. You may be shocked by how much you actually spend on takeaway coffee, for instance. Once you have analyzed each category, you will want to look for ways to minimize expenses and optimize budgeting. For example, suppose you’re a student studying abroad in a country like Dubai. In that case, you may want to look at different options for renting an apartment in Dubai, as some are more exuberant areas and can be quite expensive. Of course, there is always a cheaper option to be considered; however, it’s up to you as to how much you’re willing to sacrifice to ensure you have a manageable budget for your expenses.

The main aim of planning is to make sure that you do not spend more than you are making. 

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Be Flexible About Your Budget

Planning your budget is critical, but you should also be able to adapt.

Try to review your budget and spending at least every couple of months. You might get a pay rise, which allows you to save more, or you might need to hire someone to write a cause and effect essay when you have too many assignments to handle at once. Either way, it is critical to adjust your budget to the current circumstances. 

Create a Savings Account

When you start your savings account, it is critical to fund it regularly. Even if it is $25 per month, set an automatic transfer to the account not to think about it. This account should also be separate from your day-to-day card.

Another way to build such an account is to use apps that round up your purchases and move the rounded sum into a savings account automatically. Some people use life insurance as a long-term investing plan for their family members.

Find a Part-Time Job

Some people choose to make more instead of spending less. So, it is also a good idea to have more sources of income. Part-time work makes it easier to adapt to adult life conditions and consolidate the skills acquired in college.

However, choose your first job wisely: find the one that requires no more than 20 hours per week, or else you risk lagging behind your studies. 

Although in case you struggle to balance your job and studies, you can go for assistance. For instance, “I have to write a synthesis essay by tomorrow but can’t dedicate enough time for that” situation has an effective solution. Academic writing services are aimed at helping students get their papers done by professional writers. 

Set General Principles of Your Expenses

When you start paying attention to where your money goes, you can be shocked to see how the totals grow. 

Thus, planning your expenses is critical, and so is sticking to certain principles. For instance, your general spending principles can be as follows.

Keep Track of All Your Spendings

You can put them down in a notebook, use an app, or find another convenient way. The point is – make it your habit. 

If you choose a digital format of finance tracking, you can use apps such as CoinKeeper, FinMoney, My Money Manager, or any other you like. Many people also recommend using Excel for these purposes.

Find what works for you and track your expenses carefully. 

Look for Advantageous Options

Analyze the prices of the products you frequently use in different stores. You do not even have to do it manually: there are various websites or apps that can help you with that. For instance, you can use the Supermarket Price Comparison app to see what different supermarkets offer in terms of prices. 

Avoid Impulse Spending

If you review your spendings carefully, you will probably see how much money goes down the drain. One of the reasons for it is impulse spending. Plan what you need throughout the day and take it with you. For instance, instead of buying bottled water each day, carry your refillable bottle. Instead of using a vending machine to get a snack, take a healthy meal with you. 

Look for Student Discounts

Many businesses have special offers for students. Usually, you can get 10-20% off, but it can be even more in some countries. For instance, in Austria, you get a 50% discount on a bus pass with your student ID. 

Many museums also offer student discounts. So, do not hesitate to check for such offers. 

Next time you go to a cinema, buy school supplies, or get your hair done, check whether you can get any discounts.

Purchase Used Textbooks

Depending on your area of study, books can cost hundreds and thousands of dollars. Moreover, you will probably need to consult tutors on questions like “what does et al mean?” and “how to find reliable academic sources?”. 

Thus, studying materials are a significant expense during your time in a college or university. However, purchasing used books makes it way more manageable. Look for used textbooks on Amazon or just ask your fellow students that took a course you need. 

Wrapping Up

Managing your finances is no easy task: it takes planning, analyzing, and skill. However, if you follow these seven steps, it will get much simpler. So, go ahead and good luck.

Top 7 Tips to Manage Finances for Students

Top 7 Tips to Manage Finances for Students