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7 Great Hacks For Money Management As A Student
6 min

7 Great Hacks For Money Management As A Student

Finance
Mar 3, 2022
/
6 min

Smiling Man looking at some stats on laptop
Save yourself a buck.

As a student, when you go out to live on your own for the first time, you’ll be responsible for managing your own budget, income, and expenses. You might often find yourself in financial difficulty as early as your first month as an adult. The main problem is usually overspending and underbudgeting, which might be hard for you to admit. How can you keep money problems at bay? It’s not hard to figure out how to create a student budget: you just need to know how to get all the necessary expenses covered without worrying about slicing costs too thin.

Why money management is required for students

As a student, having money management is very crucial to ensure you don’t go broke in the middle of the month. It might sound very difficult to do at first but as you get a hold of it, it only gets easier. College is an excellent time to learn about money management and develop habits that can help you achieve financial success for the rest of your life. You may work toward greater goals like paying off student loan debt, travelling, investing and accumulating money for future milestones like relocating to a new location after college with more insight into your spending and saving patterns.

While having a good education is obviously the priority, the college also provides an excellent opportunity to build the financial abilities you'll need after graduation. You should begin making wise financial decisions today in order to lay a strong financial foundation for the future. That involves starting now to lay a financial literacy foundation.

Create a budget

Make a budget of how you plan to spend your money throughout the month and also remember to save some and put it into an emergency fund. Divide your money into three different sections, one that you save, one for your needs and another for the money you plan on spending on things you want and do not need. 

Track your expenses

Always budget and track where you spend your money. With this practice, it is easier to figure out where you have overspent and try to avoid overspending next time. There are so many apps that can help you budget like goodbudget

Monitor what you eat

Late-night orders or takeout can take a toll on your monthly budget. Eating outside once in a while is fine but ordering in all the time is something for you to avoid. Instead before getting the groceries, make a chart of what you would eat throughout the week/month and get groceries accordingly. This will enable you to eat what you want to and not overspend on the outside. 

Keep a track of your debt

You obviously go broke every once in a while, and how do you manage in such situations? probably via a credit card or borrowing it from your parents or from. When you do this make sure you borrow just as much as you would be able to pay back. Also, keep a track of how much you borrow and why. This will make it easier for you to pay back. Create an emergency fund.

Let’s create a scenario where you go broke and in the worst-case scenario you are not able to take money from anyone. Sounds scary, right? To avoid this you need to have a backup and that is to create an emergency fund. As mentioned in the first paragraph, divide your money and have a dedicated amount that you will use only and only during an emergency. This is going to be very helpful when you today and tomorrow.

Try to buy stationery and books in bulk

The college bookstore, while convenient, may not offer the best textbook prices. According to the College Board, new books and supplies cost $1,168 per student every year. Consider buying or renting lightly used books from websites like Amazon, eBay, and Chegg to save money. Books on these sites can be half the price of those at the campus store. Several of these online bookstores will even buy back your books at the conclusion of the semester.

Sell your old books

When you are done with one of your semesters, sell your existing books and get the new ones with the money you received. this can be a hack for saving money on books and stationery or you can put that money in your savings or emergency funds

Conclusion

You're about to embark on a new journey, and it may feel as though you're stepping into unknown territory if this is your first time away from home. Create a budget before you arrive on campus in order to be prepared financially. Keep your expenses low, share expenses, and watch your spending.