Financial planning is a great skill for university students to have in their toolbox.
After the initial joy of receiving their acceptance letter wears off, most university students begin to stress about the financial aspects. But it doesn’t have to be. Financial planning is a great skill for university students to have in their toolbox. Like all skills, the beginning is complicated, especially when you’re not familiar with jargon. However, once you get past that hurdle, it gets much easier for you to confidently manage your finances. Strategic management of your money will also make it easier for you to focus on your academic and social life. Hopefully, this guide helps you feel more confident as you take the next steps in your university journey.
Smart Budgeting Basics
Unless you’ve had part-time jobs during high school, university is the place where most students experience spending their money. Budgeting should be your partner-in-crime during these times. There are several types of budgets, and I’d choose one depending on your needs. Pinterest is a great resource to find easy printable budget trackers. If you’re more artistic, you can create your own budget in a bullet journal. A good rule of thumb is to follow your budget according to the planning percentage. 50% to needs(rent, food, transportation and hygiene), 20% to wants(eating out, parties, hobbies), and 30% to your future(savings and investments). If you want to go a step further, consider keeping a financial journal or using an app to track your spending habits. After each month, you review where you overspent or underspent and make changes.
Affordable Living
Living frugally can be difficult when you’re doing it on your own for the first time. Thankfully, daily life can be easy if you know where and how to look. Most online stores offer student discounts, and apps such as UniDays are great for finding deals on laptops or music subscriptions. When it comes to groceries, there are weekly discounts on essential items such as pantry foods and your basic produce. If you’re living in off campus living, heating costs can easily take up most of your income, especially during the wintertime. Make sure to bundle up instead of having the heater on 24/7.
Financial Aid & Scholarships
Scholarships and Grants: People often associate scholarships with academic achievements, which can lead students to overlook or not apply for them. While there are scholarships for academic prowess, that’s not always the case. There are scholarships specific to your discipline, nationality, gender, and even hobbies. The moral of the story is that there’s something for everyone. Googling scholarships for x is a great way to find scholarships that are tailored to you. Grants are another great option and can typically be found on the website of the Ministry of Education of your country or on the websites of research institutions.
Student Loans: Student loans can be helpful, but it’s important to borrow wisely. Only take what you truly need, and understand the repayment terms before signing anything. Keep in mind interest rates and repayment timelines. Responsible borrowing ensures you don’t graduate with overwhelming debt that limits your future opportunities.
Tips for Financial Success at University
Part-Time Jobs and Side Hustles: There are several job opportunities for university students. One popular option is working as a student assistant at your university. While they can be competitive, you can apply to different departments to better your chances. Another option is working at a fast-food chain. They tend to look for students and have schedules that cater to you so you can have a good work-school balance. A great option is using your skills to make money online, be it as a transcriber, editor, or copywriter.
Smart Spending: All the tips in this guide are rendered ineffective if you spend most of your money on wants rather than needs. It’s easy to get caught in the appeal of shopping and overconsumption, but in the long run, it hurts your finances. If you feel the need to shop, then shop second-hand and support local small businesses.
Financial planning might seem intimidating at first, but starting early makes all the difference. By taking it seriously from the beginning, you’ll set yourself up for long-term stability. Remember, small, consistent steps like budgeting and saving can add up to big results and ease financial stress throughout university.
