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Many students have no prior financial literacy experience. It becomes the reason for impulsive spending and the need to live the rest of the month with a minimum amount of money. But why is this happening? Is this due to a lack of self-control?
As a rule, students are accustomed to the fact that their parents are in control of finances. Why waste time on financial literacy if your father or mother will give you more money? This is fundamentally the wrong approach. Here are the top financial literacy tips for students that will be very helpful in real life.
Start a Habit of Saving Money
Not every student can boast of a huge amount of money. However, this is not a reason to spend every last cent. Try to keep at least 10% of the amount you spend every month. You should reserve $10, $20, or even 100 dollars each month. The final amount is not important. The main thing is that you can develop a regular habit. Sometimes even a small amount can be very useful to you in the future. Besides, having several hundred dollars, you can be sure that you can easily order essay online services if needed.
Download an App on Your Phone
Most people perceive visual information best. This means that you should choose any smartphone application that will allow you to control your money. Typically, these software products allow you to visualize your data in the form of charts and statistics. For example, you can see the most significant spending. Let’s say you’ve bought too many video games.
This will not be a problem for you until you see what you could save money and buy a new smartphone. Plus, there are tons of apps that you can sync with your bank account. Then any spending will be displayed in the general table. By setting certain limits, you can receive notifications that will warn you against buying unnecessary things.
Avoid Credit Cards at All Costs
We will abstract from student loans and situations when you need money for medical treatment. Let’s say you have exceeded your monthly limit and want to take some money from your credit card. If this is an isolated case and you had to make adjustments to the budget, then there is nothing wrong. Moreover, many banks provide a grace period. This means that you can get your money back without interest within 20-60 days.
But don’t spend too much. Are you confident in the stability of your source of income? Or do you get a certain amount every month from your parents? What if they stop giving you pocket money? No one needs a bad rating and problems with the law. Try not to waste money you don’t have on things you don’t need.
Discuss Wants vs. Needs
Many things are relevant and important to the student. There is nothing wrong with planning a purchase. Clothes, gadgets, certain services, and attending events are all normal. But what if your wants and needs don’t match? As a rule, you don’t need a new smartphone if the old one is still working and in good technical condition. It’s the same with other purchases.
For example, you saw the new MacBook Air ad, and you want to buy this laptop. Why do you need this waste of money? Can you appreciate all the advantages of the M1 chip if your old computer is still good? You should learn to distinguish between the needs and wants of the moment. This is what distinguishes an adult from a child who only follows desires.
Set Savings Goals
If you find it difficult to leave the last $50-70 in your account, you should set savings goals. How about traveling to another country or buying something really important? Do you want a private car or a motorcycle? Or are you interested in buying an expensive camera and becoming a blogger? Your ultimate goal can be anything. The most important thing is that it is crucial to you.
A highly motivated person can give up on short-term spending in favor of more important or urgent purchases. Even if you can fulfill your dream in old age, following your goal will give you confidence in your actions. Plus, any student with enough money can ask someone, “Can I pay to write essay tasks?” Academic assistance is one of the goals for many students.
The Bottom Line
It’s never too late to start saving money. You don’t need to give up your usual activities and purchases altogether. But you should understand what is important to you. Typically, every student can save between $50 and $100 a month with no problem. It’s not a lot of money, but you need to start from somewhere. If you can save $200 or more, then this is a great result. Start investing in your future. Even a couple of thousand dollars on your account can help you if you urgently need money.