6 ways to set up a student’s budget

Leaving home for university may be both exhilarating and overwhelming and independently managing finances could pose a challenge.

09:14 30 August 2013

In addition to major adjustments that a student going to university has to deal with, they might also have to contend with the essentials of learning how to manage their finances.

 

The student should understand that most of the money they will handle may not be coming free from their parents, but perhaps from university loans that will have to be paid at some point in the future.

1.    Learn the basics of making a financial budget

• Determine the total amount of money that will be coming to you (loans, allowances, income from job, grants, etc.)
• List down expenses for basic necessities (food, clothes, school materials, etc.)
• Allow a limited budget for things like entertainment, take outs and other non-major necessities

 
2.    Go for balance and moderation. Setting up a very tight financial budget can be stressful and very limiting which might cause you to binge to the extreme and distort your financial budget way out of course.

3.    Be in control. Spend only what you can afford and do not be embarrassed to say so. Remember to monitor your finances.

4.    Cash in on student privileges. Students get a lot of privileges such as specialist banking services, discount on shops, discount cards and vouchers, and so use all of them to save on spending money.

5.    Monitor your finances. Understand the details surrounding things such as your bank account, so you would not be clueless on things like if any charges were being levied on your accounts.

6.    Impose self-control and discipline. It is just too easy to go overboard on a carefree night out. To avoid being persuaded to spend more than what you can afford, just bring the money that you are allowed to spend for the night out and leave your card at home.