Do You Need To Save Money As A Student ? – Many students feel that they are too young to start saving. Looking at college and the expenses, some students see it as a difficult task to set aside a certain amount of money for savings. Students are always seen as heavy spenders and with the independence and freedom associated with college life, living away from home; they always want to spend money.
Do you need to save up money as a student?
The answer is yes!!! You need to cultivate the habit if saving. It will not only help you while in school, it will also prepare you for the future and life after school.
It is true that it is not easy to save up money due to the expenses you incur while in school but you can get some space on your expenses and see how you can keep a dollar or two.
In trying to save up money, you have to be able to manage your finance properly; you are not too young to start managing your finance and saving up money.
Though many students are faced with a lot of problems that makes it difficult for them to manage their money and save. Some if them are having problems with low funds, impulse spending, financial indiscipline etc.
Your ability to save up money and manage your finance properly will help prepare you for uncertainties and emergencies. It is difficult to forecast what will happen in the future and so it is very important to budget and manage your finance so as to save up money in case of future events.
You cannot afford to be extravagant in your spending so as not to live on debts. There are many reasons or benefits of saving money as a student at any level and we will be looking at some of these benefits in this article.
To be frank, this is the stage where you have to train yourself to be financially disciplined l, intelligent and stable.
We have divided this article into two categories so as to guide you in planning and saving up money as a student.
- Why do you need to save up money as a student?
- How can you save up money as a student?
WHY DO YOU NEED TO SAVE UP MONEY AS A STUDENT?
We save money because we cannot predict future events. Saving money as a student is very important and there are lots of benefits tied to saving money. The importance of saving money even as an individual cannot be overstated and as a student, it is even more important.
You are not too young to start saving and managing your finance. When you start now to manage your finance and save up money, it becomes a habit and trains you for the future.
Saving money acts as a safety net and cushion for emergency. Let’s dive into the reasons to save up money as a student…
- It helps you stay out of debt
Saving money as a student will help you pay off your debts on time and help you stay out of debts. When you cultivate the habit of saving, you will be able to meet your needs without borrowing money.
When you save money, there is no way you will live on debts because when planning on saving you set your budget in a way that you reserve money for savings as you cut down your expenses so as to live within your income.
When you live within your income, you will stay out of debts and have money to save.
- It helps you cultivate saving habit early
Like we said earlier that you are not too young to save money as a student. When you start saving money at this stage, you grow into saving money and become used to it.
Saving money as a student will train you for the time you start earning real income.
- It helps you prepare for the future and unforeseen events
Like we say earlier that we cannot predict or forecast future events and happenings, therefore saving money serve as a safety net or emergency cushion.
When you save money, you will have something to fall on when you are faced with unforeseen or unplanned events. The money you save serves as a succor in times of emergencies as you cannot predict the future accurately as it is filled with uncertainties.
- It helps to control your spending
The practice of saving money helps to cut down your expenses. As a student, when you cultivate the habit of saving, you see yourself not spending extravagantly as you always have a budget to save either weekly or monthly. Saving money helps you control how much money you spend as you try to live within the money that comes into your pocket.
Saving money will help you work on impulse spending and make you financially conscious.
- It gives you a level of confidence
When you have savings to help you cater for your needs or meet up with unforeseen events, you have this confidence and believe in your ability.
You know it is not easy having confidence in yourself at a young age especially as a student but when you have savings or cultivate the habit of saving, you believe in your ability to do certain things on your own and handle certain situations without looking for support.
You just trust yourself and your ability to foot your bills.
- It gives you freedom and independence
The independence and confidence go together. When you are the type of student that saves up money, you would be able to meet your needs without help from parents or friends. You would first see how you can meet your needs on your own before asking for assistance from others around you.
Your ability to manage your finance, cut down your expenses and gather up savings will help you cater for your needs and give you a level of Independence. Savings ensure you don’t couch-surf at your parents and that you do certain things on your own.
- It helps you meet your needs and pay off your bills early
When you manage your finance, you are able to prepare a budget that would guide you in spending money. In this budget, you are expected to arrange your needs according to their relative importance. Saving up money will help you meet your needs easily.
You don’t have to wait till your rent is due to pay it off. Savings helps you to pay off your bills on time without having to source for loan or assistance.
- It helps you prepare for life after school
For a student that graduated without any savings, you are likely to couch-surf your parents. You have no funds to fall back on and will always rely on others to cater for your needs and foot your bills.
Well, saving as a student will help you to prevent couch-surfing. Saving is a skill that every student should develop as it will help you prepare for real life situations.
A student that has been saving money from freshman year to graduation will definitely have funds and be prepared to start life after college. He or she wouldn’t find it difficult to take any risk furthering their dream.
Also cultivating the habit of saving will help prepare you to save money or train you to save money when you start earning money from work. You will not be new to the system of saving.
- It reduces financial stress
With your savings, you do not have to worry about your finance and expenses. You don’t have to worry about paying your next rent or getting food for the next month. Your savings will help you meet up with your needs and relieve you of financial stress. You don’t get to borrow money to meet your needs.
- You have a chance of starting up a business in school or after school
With savings, you have a chance of starting up a business while you are in school or after graduation. A student that always save money can easily raise funds to start up little businesses and start making money. You will not find it difficult to finance a business while in school as you will have enough money to invest in your business.
You will also be able to establish a business after school as you have bin saving.. You become financially disciplined and intelligent and this will certainly help you start up and run your business without financial issues.
- You get to help others
Through the money you have saved up, you can help your friends when they are in need or help any of your family members. You can render financial assistance to them to start up business or pay off debts.
You can also give loans to them in return for little interest.
HOW CAN YOU SAVE UP MONEY AS A STUDENT?
We have looked at some reasons you should save money and we are sure you have seen that it is very important to save money as a student. We are going to look into how you can save up money as a student and we will be dishing out some tips to help you see how you can cultivate the habit of saving as a student.
Like we have always said that you are not too young to start thinking about managing your finance and saving up money. What you need is self-discipline and financial intelligence.
Without further ado, let’s jump right in…
- Prepare a budget
The first step in trying to manage your finance and save up money is to create a budget. You are not too young to plan and have a budget. Your budget will help you curtail and monitor your spending.
You can create daily, weekly or monthly budget depending on the individual but we advise that you create a rough weekly budget and a comprehensive monthly budget. In this budget, create a portion or space for savings and allocate a certain amount to it depending on your income. This budget will give you control over your finance and help you save money monthly.
Your budget also help you prepare for unforeseen events as you reserve some money for miscellaneous in your budget.
- Cut down your expenses or spending
If you actually want your budget to work and you want to save money, you have to cut down your spending. Try spending money on your needs rather than your wants but for you to do this, you have to be able to differentiate your needs from your wants and arrange your needs according to how pressing they are.
Don’t be extravagant in your spending. If getting new products are expensive, try buying second hand products at cheaper prices; it will help you save a dollar. Do not live a show off or luxurious life if you want to save.
- Stick to your budget
One thing is preparing a budget; another thing is sticking or following that budget. When you follow the budget you prepare for yourself, you will always have money to save.
Spend according to what you have budgeted and things you have planned to buy. Work with your budget and monitor your spending. Remember that in your budget, your expenses should be within your income; it shouldn’t exceed the money that comes into your pocket so you don’t live on debts.
- Avoid debts
Someone that is always in debts doesn’t always keep money to save because he or she will always be paying off debt. Like we said that you should try to live within the money that comes into your pocket (gift, allowances, and wages) and you will not fall into debts.
What makes some people live on debts is that they spend or live above their income and in order to meet up with the expenses, they tend to borrow money and then fall into debts.
- Don’t go to the grocery store on an empty stomach
Going to the grocery store on an empty stomach will make you overspend. Everything you see in the store entices you and before you know it, you have starting spending more than you have budgeted.
You can decide to go to the grocery store at another time but don’t do it when you are hungry. You will be tempted to overspend.
- Haggle prices
You shouldn’t accept all the prices they tell you for items you want to buy. The seller wants to make profit and if there is a way, they will want to make excess profit, so for every price they tell you, try to haggle price.
You can also ask for discount as this will help you save money.
- Don’t eat out; cook your food
Do you know that you actually get satisfied when you eat the food you cooked? When you always eat out, you spend more money and don’t get satisfied unlike when you cook.
To save up money, try getting foodstuffs and cook your own food. Eat out once in a while because you might not always have the strength to cook but don’t make eating out a habit so as to curtail your spending.
- Don’t engage in impulse spending
One thing that makes you overspend as a student is impulse spending, that is, spending money on things you didn’t plan for. If you really want to control your finance and save up money, you have to avoid impulse spending and you can do this by sticking to the budget you prepare for yourself.
Some items we buy by impulse turn out to be a waste so you should have self-control and discipline as not to engage in impulse spending.
- Don’t go out for shopping with more than what you budgeted
Going out with extra cash than what you have budgeted for spending will definitely lead to impulse spending. Go out with the Money you have budgeted for spending and if there is a need to carry extra cash, let it be a little amount in case of increase in price so that you won’t get stranded.
Do not go out with excess cash fir shopping as you will end up spending everything.
- Try to cook with your friends
Another way you can cut cost and save up money is cooking with your friends. You guys can come together and contribute money to buy foodstuffs. This will help minimize the expenses one person will incur and with this, you can actually save money.
- Contribute and save money with friends
You and your friends can come together to contribute and save money. When you and your friends run a contribution, it will help you to be consistent with saving money and also control your spending.
- Get a part-time job
Coping with having a job in school might not really be easy but before you do this, check if there are any disadvantages to having a job as a student and see the effect of this job on your studies. Remember your priority in school is to come out with good grades and become a successful student.
Getting a part-time job will help you get funds to help cater for your needs and increase your savings. Know your school schedule and see how you can work alongside your school or class activities.
- Make a piggy bank for daily saving
A piggy bank is also called a money box and it is used for storing money. In order to train yourself to save money, you can make a piggy bank that will help you save money on a daily basis.
You should know that when it comes to saving, no amount is too small. The idea is about cultivating a saving habit. So make a piggy bank for yourself to save money.
- Understand your cash flow and be in control
If you really want to start saving money as a student, you have to understand your cash flow (that is how money comes in and goes out of your pocket). Understanding your cash flow will help you prepare your budget and know how to spend so as to keep reserve for savings.
You should be accountable for every penny you spend as a student whether for rent, grocery, clothes etc. It very important that you understand your cash flow so as to manage your finance properly and be in control.
- Set financial goals for yourself
Don’t ever think that you are too young to have financial goals for yourself. Your financial goal could be saving up a tangible amount of money at the end of the year.
You set a particular target and work towards achieving that target. Setting a financial saving goal will help you cut down on your spending and manage your money properly.
- Learn self control and financial discipline
Financial discipline is the act of controlling yourself and your spending so as not to overspend and spend money on things that are not really important. In order to be able to save up money and control your spending, you have to learn how to have self-control and financial discipline.
Questions and Answers
We have looked at the why you need to save up money as a student and how you can save up money as a student. Now we are going to be answering some questions students ask about saving money.
- How much should a student save or have in savings?
The idea is not the amount you have in savings; it is about consistency in the act of saving. There is no specific amount that you should save as a student. So if you can save up to $100 dollars a month or more, it’s cool. Just be consistent with what you are doing.
- Should I save daily or weekly?
Saving daily or weekly depends on you and how the money comes in. If you want to save daily or weekly, you will have to cut down you daily or weekly expenses to be able to keep up. Cultivating this habit is good and it will prepare you for the real world.
The importance of saving cannot be overemphasized and as a student, it is equally important. You should develop the habit of saving today and cut down your extravagance. You are preparing yourself for the real life situations. You should know that anyone that saves is never caught unaware by unpredicted events. You have an emergency cushion and something to fall on.
We hope you learnt a lot about saving from this article.