When you have clarity about your budget and expenses, you can readily clear the debts, plan for a vacation, arrange money for a course and much more. However, it requires a little knowledge, planning, and will power to execute the idea.
The financial habits you start in the early ’20s will last throughout your life. You can even have a more organised approach for creating a budget. You can start managing your money with a budget tracking app connected with your bank accounts or customise it online with spreadsheets. So, budgeting can have several benefits for the students.
Also Read: How Savings Account Helps In Financial Education
Plan an All-Inclusive Budget
As a student, you should always focus on creating an all-inclusive budget plan. At first, add your income sources like parental allowance, savings, and income if you are working. Then make a list of the possible expenses of the month. This list should include your tuition fees, college supplies, rentals, bills, food, travelling expenses, laundry and other probable options like movies, eating, socialising, etc.
When calculating the budget, don’t forget to add the small expenses as these can significantly increase the expenses. You can be a clear winner if you can save a decent part of your income.
Put a Check on Your Spending
Teens have always been associated with impulsive buying behaviour. This spending habit needs to be replaced with more restrained purchases. Students should understand the difference between need and want. For instance, you are ordering an expensive dress because of its remarkable design. Think is this purchase worth justifying? No matter whether it disturb your budget or not, purchase only when you need it.
Be Smart with Your Credit Card
A credit card can be a lucrative tool to carry compared to having cash in the bag. Also, it comes with a host of discounts, rewards, and offers that might tempt you to make an instant purchase. However, if you aren’t paying the bills in time, you will be trapped in the vicious loop of repaying the high interests. Instead, use your credit card smartly to pay the bills in time, enabling you to create healthy credit scores. This score will later help you get a personal loan or home loan after you finish your graduation.
Also Read: What are the benefits of a student bank account?
Opt for Second Hand Books
Getting second-hand textbooks can save you a good amount of money. If you invest in new books, it can almost double or triple the cost of purchasing the old ones. You can check for the used books from the previous year students and get them at a very low price. There are also some recycled book stores that sell used books at a marginalised price. This way, you can save a sufficient amount of your money. Even you can look for e-book options.
Save Money by Cooking
You have no idea that how cooking meals at home can save a plentiful amount. No, we aren’t saying to completely stop going to the restaurants for a few indulgences, but home cooking is much affordable for every day. Moreover, it also healthy if you are preparing meals at home. You can check some of the nutritious recipes that are also easy to prepare and cook. It will allow you to save more on your food allocations.
Also Read: What is Credit Score and How to Check It
Consider Taking a Job
Earning some extra cash will help you in managing your budget and giving cushion to your money bank. Consider this option when you are getting a part-time opportunity that doesn’t hamper your study. It will help you to be more methodical with your spendings. You can also create a separate fund that can be used for various purposes. It can be helpful in EMI payment of a loan, travelling expenses, purchasing a two-wheeler, etc.
Also Read: How to Instill Financial Discipline in Students
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FAQs
Q. Does giving monthly allowance to students a good idea?
Yes, giving a monthly allowance to the students will help to learn the value of money. In this way, they will understand about managing their monthly finances independently.
Q. What are some of the **best *budget tracking* app**s *that can help* in managing money
The best money apps that help to plan and manage monthly allowance are Mint, You Need a Budget, Personal Capital, Zeta, Prism, and Clarity Money.
Q. When should you pay your credit card bills?
Ideally, repaying the credit card bills need to be done by the due date of every month. But you can even pay earlier if you see your credit utilisation is getting close to 30%.
Q. What is the simple plan for making a monthly budget?
A simple plan for a practical budget plan starts with the identification of your spending habits. Also, clear your debts and pay your bills on time, coupled with frugal purchase practices goes a long way in shaping the budget.
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Also Read: More about Types Of Student Loans
