LIFESTYLE: HOW TO MANAGE YOUR FINANCES AS A STUDENT

By Sharon Adisa

It is safe to say that the most challenging parts of being an adult are, in one way or another, related to money. Far gone are the days when your daily feeding and expenses were handled solely by your parents, as becoming not just an adult but a student spells out independence. As a student, managing your finances is a skill you will require, whether you like it or not. After all, the harsh realities of being broke aren’t ones anyone would like to face.

In the last few years and even presently, Nigeria has experienced a surge in the amount of financial education made available to people. From well-known Fin-Tech companies like Cowry-wise, Piggyvest, Kuda, and non-profit organizations, the gospel of financial management is gradually being spread far and wide.

In simpler terms, the solution to avoiding stories of being broke that touch the heart is to be financially literate; fortunately, this article will give you a beginner’s guide to managing your finances as a student. So whether you’re a fresher, a stalite, a tech bro or sis, a billionaire, or dependent on your parents, you are sure to find the keys to financial freedom.

So here are some ways to manage your finances as a student.

1. MAKE A BUDGET: When people take songs like Loaded by Asake or Party by Adekunle Gold too seriously, the result is that they spend everything they have and even what they don’t have. Don’t be deceived; claiming the hashtag YOLO (you only live once) is not a license to live, moving from having money to being broke to borrowing money and repeating the cycle.

As a student, the temptation to spend constantly arises. Whether you’re trying to keep up with what is in vogue, satisfying your guilty cravings, or buying materials, most days on campus involve utilizing your money. The problem then starts when you don’t keep track of the money you spend and when there’s no set limit to what you spend.

The beauty of making a budget is that it helps you prioritize and place your needs and wants on a scale of preference. If you’re largely undisciplined with money, having a budget would make you accountable and grounded in your spending before the shock of an empty account hits you. To make a budget, these are the steps to take:

1. Know your monthly allowance or income.

2. Map out your monthly needs, i.e., foodstuffs, toiletries, and transportation.

3. Make a scale of preference, that is, a list of the most important to least important things in chronological order.

4. Fix prices for each of these things and stick with them. Be disciplined and remember to stick with it!

• WRITE AND CUT DOWN YOUR EXPENSES 

For the first few weeks of a new semester, most students are bound to spend money faster than they can account for it. With the advancement of technology and the use of mobile banking and ATM cards, it’s much easier to spend money and have the illusion that you haven’t spent much because you don’t pay physically. Hence, you must note down your expenses so you can properly track the money you spend.

Every time you buy something, document it, and then scrutinize your list either at the end of each day or each week. Doing this would also help you see categorically what you spend your money on, and in turn, you’ll be able to cut off the things that are not necessary or expedient.

Most people will be surprised to realize that their money goes into things they can most likely do without, like junk food. Writing down your expenses would further help you discover destructive patterns of spending on something or someone.

• FIND ALTERNATIVES

No one was made for suffering, but making a budget and cutting down your expenses can be close to suffering for some. Managing your finances means making sacrifices and forgoing certain things; however, finding more affordable alternatives may help you have your cake and eat it too.

For example, rather than eating out, one could opt for homemade or, rather, hostel-made meals. This could help reduce the cost of eating out. Also, a person could replace soda with cheaper and healthier drinks like zobo, iced tea, etc., or reduce transportation costs by opting to walk instead.

Again, the idea is not to suffer but rather to manage your finances while also making the most of your freedom to use your money for your enjoyment.

• DEVELOPE A SAVING CULTURE

Having a saving culture is the ultimate key to managing your finances as a student. For most people, saving involves stashing money in a kolo (traditional wooden box), but in reality, several banking apps in existence assist individuals to save a certain amount intermittently and may even include interest rates over every amount you save.

The benefits of saving cannot be overemphasized, as saving easily serves as the answer to your prayers when you urgently need money. The beautiful thing about saving is that you may choose to save for a rainy day or you may choose to intentionally set money aside for certain expenses, like buying an expensive wig or going on a trip.

Whatever the case might be, various fin-tech companies and banks offer a vast array of saving options at your disposal, including being able to lock up your money for a set period, rendering it unable to be spent.

• FIND A STUDENT-FRIENDLY SOURCE OF INCOME

To not only manage your finances but also ensure financial stability, opting for a student-friendly source of income is highly advisable. In the present age, having a business is not limited to having a physical store. Social media platforms and delivery companies have made it easier to carry out business from the comfort of your hostel. You could also venture into earning money online through digital marketing, content creation, copywriting, affiliate marketing, and many others.

Having a business would allow you to enjoy another source of income; however, the disclaimer to having a business as a student is the stress and time-consuming nature of it. That is why students should engage in a business that allows them to have adequate time for their studies and in no way deprives them of learning.

By following these steps to manage your finances, you’re going to enjoy this new semester and surely escape going broke.