One of the biggest challenges you face as a student is keeping your finances balanced. Most students don’t have lots of money sitting in their bank accounts, and that makes managing your cash even more important. The last thing you want to do is waste money and manage your finances poorly because that’ll only make life harder later down the line.
If this is something that you’re finding daunting as a new or soon-to-be student, the guide below will help you out a lot. We’re going to go in-depth on how to manage your finances better and ensure the best possible financial outcomes moving forward. You’ll be surprised at how much you can achieve when you take the time to manage your finances properly as a student.
So read on now if you want to find out more about the specific steps you should take to manage your money better.
Learn How to Create Budgets
First of all, you should take the time to learn how to create budgets that are clear and concise. Doing this might sound relatively simple, but there’s more that goes into it than you might imagine. There are lots of online resources out there that can teach you how to make your own budgets and to get everything covered within them. The most important thing about creating your own monthly budgets is that they give you financial clarity, and you need that as a busy student more than anything else.
Track Your Expenses
Tracking your expenses is definitely worth it as well. There are apps that can do this for you. You simply connect them to your bank account and you can see exactly how you’re spending your money and where the money’s going. If you then notice that you’re spending more than you realized and more than you want to on certain things, you can make some changes and start spending a little less. That should definitely be one of your main aims and ambitions if you feel your spending is getting out of control.
Open a Savings Account
As you’re beginning life as a student, it’s a good time to open a savings account if this is something you’ve never done before. This will make it easy for you to put money aside and separate your money. You can then start to create a financial buffer for yourself. If you’re doing a job and earning money, you can make sure that a percentage of what you’re making is put aside and saved for any future needs you might have as a student. So if you haven’t done this already, it’s definitely something worth considering.
Learn How to Cook on a Budget
Learning how to cook on a budget is definitely something you should try to do. Food can take up a lot of your budget if you’re not careful. And you definitely don’t want to fall into the student trap of ordering delivery food all the time. It might sound like a good idea, but the cost of constantly having takeout food delivered to you will eventually start to add up and have a big financial impact. Instead, learn how to cook healthy and nutritious meals on a budget. As tough as it sounds, it certainly can be done.
Set Small Financial Goals
Setting financial goals for yourself is definitely something that you might want to consider. There’s nothing at all wrong with aiming high and wanting to make money as you study. We’ll talk in the next section about finding work. But your goals don’t have to just be about earning money. Perhaps your goals are to stick to a budget or to find creative ways to have fun without spending a huge amount of your monthly budget. Having goals keeps you focused on what matters when it comes to your finances, so it’s definitely worth thinking about this.
Look for Suitable Part-Time Work
It often makes sense to think about how you can earn a little money while you study. Of course, as a student, your main focus needs to be on your studies and your grades. You don’t want to fall behind and watch your grades slip because you’re spending too much of your time working and trying to earn money. But if you can find time for a part-time job, that’s definitely something that you might want to consider. It’ll mean you have money to put aside in case you need it later on in your studies.
Find Ways to Save Money on Entertainment
Lots of students spent way more money than they should and more money than they have to on keeping themselves entertained. This is definitely something you can think about and work on though. There’s no shortage of ways in which you can reduce your entertainment costs without really making any sacrifices. You’ll find that lots of streaming platforms and music platforms offer student discounts, and the same applies to lots of in-person entertainment events too. Be sure to make the most of the discounts and deals out there for students.
Be Aware of How Small Purchases Can Really Add Up
One thing you really have to keep in mind and keep an eye on is the way in which those small purchases can really start to pile up if you’re not careful and keeping an eye on things. There’s no reason why you should take your eye off the ball though. This is why tracking your expenses as we discussed above is so important. Be aware of how a coffee from a local coffee shop each day or getting lunch out each day can add up. And there are always cheaper solutions out there if you’re willing to put in the effort.
Ensure You’re Making the Most of Any Grants You’re Entitled To
It’s important to do your research and really find out what you’re entitled to in terms of grants. Lots of organizations offer student grants to all kinds of learners. Perhaps your family background means you’re entitled to a grant or maybe the subject you’re studying has a higher number of grants available than others do. The great thing about grants is that, unlike loans, you never have to pay them back at all. So it’s one less thing to worry about when it comes to making repayments.
Keep an Eye on Your Debt Situation
It’s important to pay attention to any debts you have. Of course, you’ll be likely to have student debts, but you won’t need to start paying these off until you begin working. So that’s not something that you should worry too much about while you’re still studying. But if you have other loans, such as Wise Loan installment loans or something similar, you should be careful to stay on top of your repayments. And try not to take on extra debt if you don’t need to.
Consider Your Credit Score
Related to your debt situation is your credit score. If you want to make sure that your financial situation isn’t wrecked by your time as a student, you’ll need to keep an eye on your credit score. This is the score that tells lenders who safe you are to lend money to. And it can affect things such as your ability to get loans and mortgages in the future. So always be sure to pay your bills and make any debt repayments on time or run the risk of having your credit score negatively impacted.
Ask Questions if You’re Not Sure
If there’s ever anything you’re not sure about with regards to your finances, you shouldn’t hesitate to stop and ask questions. As a student, you’re still learning about all of this, and your time as a student should be seen as one big learning experience and opportunity. There’s help out there from professionals such as debt support professionals or general financial advisors. Or you could simply talk to your parents or someone at the student services desk at your college. There’s nothing wrong with asking questions and getting answers from trusted sources. It can help a lot.
Try Out Some Financial Planning Apps
Trying out some financial planning apps is a good idea if you want to gain a greater level of control over your financial situation as a student. It can be challenging when you feel as if you don’t really have control and you don’t track the money going in and out of your accounts. With the help of the right digital tools these days, you can massively improve the way in which you control your money and your finances generally.
Being a student is tough and balancing a job, your studies and managing your money carefully at the same time is not easy. Nevertheless, it pays off to really spend the time and energy looking after your money and managing your finances properly. The experience will also teach you to manage your money better later in life too.
