Handling finances as a student

It is a tough job for many starting students to know how to handle their own finances since most of them find themselves in that situation as first time managers of their finances. Unfortunately, your finances won’t look after themselves. It’s your responsibility to ensure the relevant bills and fees are paid on time and to have enough money left for going out. Now that you’re on your own, you might be tempted to spend money on all the things your parents wouldn’t let you have before. Go slow. If you play it smart, you can avoid the sort of money troubles that plague many young adults. Many students live below poverty level, unless those whose parents are rich. If you fall in the former category, there is need for several mechanisms to be able to manage the little money you afford to mobilise be it from friends relatives or bursaries for those who have them. In this case therefore, you need to keep your paperwork organised and set yourself a realistic budget, you can keep track of your spending, on top of bills and money won’t be a worry. You can keep track of your spending by making a list of your monthly incomes. If incomes are per semester or annual, divide them up into monthly sums. See how the two compare. If you consistently have higher outgoings than income, then you will be building up debt which needs to be managed. If you have money left over, think about how you can make that money work for you. If you want to be a good finances manager, you can join a credit union. Don’t just go for a bank because it is new in town. Track down a credit union in town. According to Paul Bigabo a student at KIST, managing finances at school can be a disturbing experience as it seems like there are a hundred things competing for your money. It’s hard to know what to do. He however says that as a student, you need to prioritise and make a budget. It doesn’t have to be fancy. At the start of the month, estimate how much money you’ll receive and decide where it needs to go. Remember: you don’t need to spend it all. You must also learn how to save, no matter how little you save; slowly you will catch up with the habit and this will help you even after school. You can slash your spending habits through having cheap outings. You can have a lot of fun for cheap places close to campus. You can organise economical group trips not very far from campus and in these you can have a lot of fun equally. Elvis Nsengiyumva says that one of the ways that can help in controlling your spending habits is to choose the group you hang out with. He adds that you shouldn’t hang out with big spenders. “Some students have parents with deep pockets. Others are well down the road to financial trouble. Hanging out with them can lead you to spend more than you can afford.” Taking advantage of campus activities is another option according to Nsengiyumva. “There is always something to do. Attend free movie festivals. Support the sports teams. Attend lecture series,” says Nsengiyumva. If you want some extra cash to spend on top of your usual source of money, then you can try a part time job where you can be able to raise some extra money. This even helps you getting established in the world of work even before finishing school. It also leads in getting recommendations and contacts that you can use after you’re out of school. And finally, if you want to be a good saver, learn to spend less than you earn. If you don’t earn much, then don’t spend much. If your spending and income are roughly even, you have two choices: earn more or spend less. Ends