If you are a college student, you definitely have come across the situation of no cash once or twice in your life. There were also occasions when your expenses would have exceed incomes and you end up borrowing money either from your friends or family. I personally have to face the same problem in my student life. It is quite common.
But what is more important is that you learn from your mistakes and start money management from today only. Money management is very important for students so that they learn the art of managing and saving money which will also benefit them in future.
Why it is important? Well, logic is simple, if you are not able to manage a very small amount of money at this age then how you would be able to manage the money when you will receive pay checks in thousands and lacs. So, in this article I will be sharing some money management tips that will help students to manage their money in more better and effective manner.
Money Management Tips for College Students
Here are the 10 money management tips for students that will help them to manage their expenses so that they do not run out of money plus provide them a life lesson.
Tip 1 – Make a Budget
Budgeting is a process in which one estimate all the future expenses in advance. It is basically a detail description of all the expenses that occurs in future. So, the first and most important tip to manage money for student is to prepare budget. You can prepare budget category wise. For example – Food Budget, Travel Budget, etc.
Tip 2 – Monitor Your Expenses
It is very important that you should know from cash inflows are coming and where the cash is going. If you monitor your expenses, you will come to know about those areas where your expenses are unnecessary. If you are able to identify the unnecessary expenses, try to reduce them.
Maintain a sheet of all the expenses that you incur on either a paper or on an excel sheet. There are also Money Management apps available over internet. Download one of the app and start monitoring your expenses from today only.
Tip 3 – Keep a track of all your borrowings
In college life, our borrowers are either our friends or our relatives. I also have experience it. One of my friend ask me to lend some money, but he was not able to repay me when I asked. The reason was he doesn’t know how to manage his expenses.
It is very important that you keep a good track of all of your liabilities. When you received money in the beginning of the month, just pay off all your liabilities first. Make sure that your liabilities should not be huge.
Tip 4 – You better know how to difference between wants and needs
There is a difference between wants and needs. Your mind can want a Taj Mahal but you also know that you can never get it. What I want to say here is that give priorities to your needs not your wants. For example you see a beautiful shoe or a dress in a shop that you like instantly and want it. It will be foolish decision to buy them if you do not have sufficient cash. Give priorities to your basic needs.
Tip 5 – Resist Peer Pressure
Peer Pressure play a very important role in making you bankrupt in your college life. If a friend buys a new phone, you also desire to have a new one even if your phone is just 2 to 3 months old. So, students who have a fixed budget and cannot afford going beyond their expenses, it is very important that they do not become influence by their friends and peers.
Tip 6 – Take advantage of Student Discounts
There are many restaurants and eat outs that offers student discounts. Whenever you go out for eating, ask them the student discounts. This will save you few bucks for you.
Tip 7 – Search for Discounts online
Student prefers going out and having party with their friends. For example you and your friends are planning to have pizza in Pizza Hut. Well check online for offers at Pizza Hut. You will be surprised that a significant discount is available on Pizza.
Tip 8 – Buy Books and Stationary items in Bulk
A major part of the student income spend on books and stationary items. Instead of buying single piece, try to buy the notebooks in bulk. Shopkeepers provides trade discount when you buy in bulk.
Tip 9 – Don’t keep the left money idle
After making all the expenses if you are left with money, don’t keep it idle. Start investing in somewhere. This not only provide you with good returns but also makes you understand various investment products.
Tip 10 – Look for Part Time Jobs
Get a part time job to increase your pocket money. There are various jobs available such as content writers, BPO executives, etc. You can also take tuition classes in your free time. This will add up your pocket money and help you to fulfill your expenses.