How to Manage Your Money as a Student

What is money? Based on the Cambridge Dictionary, money is defined as ‘coins or notes that are used to buy things.’ In other words, money is something that we can exchange for items that we wanted. We use money every day for our daily consumptions of food, petrol, utilities and any other subscriptions. As for the students who are studying in a college or in a university, they have to be aware about their finance to avoid exhausting their wallet and savings. So to answer the question, "how to manage your money as a student?" this essay discusses several methods to manage students' money wisely.

First and foremost, students can manage their money by creating a budget that includes everything. Students should list out the source of income, such as parents’ allowance, part-time job, study loans or any grants. Then, they can map out the estimated expenses for a week or a month including expenses like food, travel, school supplies, and laundry. As the result, they will have a better picture of their spending amount per month. Also, there are applications like Mint and Spendee to assist them in keeping tabs on their online spending amount by linking their bank account to these applications. At the end of each month, a summary of the monthly spending amount will be shown on these applications. On another hand, students can use spreadsheets to record their spending if they prefer the conventional method. Nevertheless, students should spend according to the budget planned beforehand or it would be ineffective.

Furthermore, student can minimize the spending amount to manage money efficiently. Instead of buying a brand new, students can opt for second-hand items to reduce their spending amount. Students can buy school supplies like books from their senior or from specific websites that sells used textbooks. Also, students are able to save money if they cook their meals themselves besides of enjoying healthier food. They can purchase groceries from a nearby supermarket with a fair price and serve meals for themselves. For those who is unfamiliar with cooking, there are various simple and easy recipes on the Internet. In addition, students can cut down cost by knowing students’ discounts. Some products or services such as movie tickets and books, offer student price, and the students can enjoy a day out without upsetting their wallet.

Moreover, students should control their spending habit to manage their money. The vital part in managing money is to differentiate what you need and what you desire. They should restraint their desire to shop the unnecessary and luxurious items. They can select the products with a lower price rather than the most expensive item on the store’s display. For instance, a student is looking for a phone, rather than the newest iPhone that cost much higher than other phones, he or she can buy a cheaper phone with specifications that is adequate for studies. In addition, the student should think twice before they buy, and compare the price between different stores to obtain the most reasonable price. Thus, saving money along the way.

From another point of view, why students need to manage their money wisely? The students should manage their finances well to pay back their education loan. The primary source of financing for the fees of tertiary education is the National Higher Education Fund Corporation (PTPTN) in Malaysia. Besides PTPTN, there are other financial institutions that offer study loans too. The students also have to bear the interest when they are repaying the loan. Thus, the longer the repayment load period, the more money the student need to pay back. If the students manage their money well and have savings, they can pay back the loan in a shorter time, and thus, less interest will be charged.

Another importance of managing money is the students can prepare for emergencies. Sometimes not all of them were recruited straight away after their graduation. Therefore, this is when their savings come in handy, they can still stay afloat by living off their savings until they find a job. Also, emergencies such as car breaking down or fallen ill require the students to pay more than their anticipated budget. Students that have a good financial management have no worries about the unforeseen circumstances.

Finally, students that manage money wisely can have more financial security. The students can feel secure about their financial status, knowing that they have resources from their accumulated savings to encounter with unexpected expenses. The student will not find himself or herself at the edge of bankruptcy. In addition, the student will not feel stress-out at end of every month to fulfil the utilities bills and rent.

In a nutshell, there are many ways of money management. A student should practice good money management skills such as budgeting, controlling and minimizing spending amount. Also, a student should stick to his or her budget so that he or she will reduce the risk of overspending.