10 tried and tested money management strategies for students

Credit to Author: Geneviève Beaupré and Susan Qadeer| Date: Wed, 11 Jan 2023 00:27:11 +0000

Managing money as a student can be challenging. There are multiple ways to navigate the costs that come with a post-secondary program. Students can work, cut back on their expenses and/or find creative ways to save money. Here are ten tried and tested strategies.

1. Explore financial assistance options at school. One student who could have used more money decided to put in extra time and effort into his academic work to be considered for merit scholarships. He had lots of confidence in his abilities and worked very hard. However, not everyone has those talents and discipline, and scholarships are not a guarantee. While it is an excellent idea to explore financial assistance options such as scholarships, bursaries, grants and loans through your school and other sources, you may have to find other ways to fund your education.

2. Seek out high paying summer jobs. For decades now, students have found high paying summer work by planting trees. It can be difficult work, especially at the beginning when you are still learning, but it can also get you into good physical shape while earning more than the average salary for summer student jobs. You may also save more since the living conditions are such that you won’t be tempted to spend money.

Some students who find work in high-end restaurants make good money in tips. The summer is also the time when many people take a  vacation, which creates opportunities for temporary workers in administration, hotels, camps and the entertainment industry. Construction work may also increase in the summer months.

3. Find ways to increase your study time. Other strategies students have used to increase their income during the academic year include working near home or campus to minimize time lost in commuting and finding work that allows for studying while working, such as night desk clerk in a slow-paced environment.

4. Make the most of what you have. Some students who are partly through a program such as nursing may find career-related work, such as an orderly in a hospital or nursing home or a care worker in a private home. Students with good grades and talents also make use of their abilities as tutors, translators, performers, movers etc. or their cars to offer transportation services. Another common way of making money is to sell what you no longer use or need, but may be of value to others such as books, clothing, jewelry, sports equipment, comics, musical instruments, etc.

5. Keep track of your expenses. Making money won’t help if you spend more than you earn. Students are encouraged to make a budget so they will know their expenses. Unplanned expenses can include a daily fancy coffee, going out frequently with friends, unplanned meals, impulsive shopping or frequent treats after a difficult or successful day. The best way to know what your money weaknesses are is to keep track of your expenses for a few weeks and if problems are evident, then devise a way around them. This can be done by accumulating receipts or by noting the amount each time you buy something.

6. Allocate funds. One experienced and well-organized student showed her younger brother how to use monthly envelopes. She had different envelopes with funds allocated for rent, food, transportation and entertainment. When the envelope was empty she knew she was finished with spending for that item for the month. Her brother tried it with limited success at first but after a few months of living on hummus and ramen noodles by month end, he became a smarter meal planner.

7. Set limits on spending. Another student has found a way to set limits on his expense at his favourite coffee shop. At the beginning of each month, he buys himself an e-gift card based on how much he wants to spend or what he can afford. Once the gift card is out of funds, he does without until the end of the month. Tracking his spending was an eye opener for him in terms of how quickly these small daily purchases can add up.

8. Watch your credit card use. Always pay off your credit card bill in full and don’t use credit for things you cannot afford. The interest rates are extraordinarily high and can become very difficult to pay off. Credit cards can give you the illusion that you have lots of money, but it is easy to drown in debt if you only make the minimum monthly payment.

9. Find low-cost entertainment.  Evenings out with friends, especially if they involve food and alcohol, can quickly become expensive. Look for low-cost or free entertainment such as summer outdoor festivals or free nights at your local museum or art gallery. Your school probably has a gym, so why pay for a gym membership? We all need rewards. Know which free or low-cost rewards will sustain you.

10. Compare prices. Be careful about where you shop for food, clothing, and other items that you need. Prices vary significantly from one store to another and when each item costs more, this can really add up. Some students buy clothing and household items at thrift shops. It is also a great way to reuse items that would otherwise go to landfill.

There is enough to think about when you are a student with assignments and exams; manage your finances and you will lessen one worry. If you do get into financial difficulties, there are free credit counselling services to help.

Making mistakes when it comes to financial management can be costly and stressful; if this tends to be challenging for you, learn from those who are savvy with their money.

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