Money Management for Students

Student life is a great opportunity to learn how to budget your money effectively. This may sound like an unpleasant or even boring task, but it is a vital skill to master which will help you throughout the rest of your life. Popular best-sellers such as The Millionaire Next Door* and I Will Teach You To Be Rich** argue that the best way to have the bank balance you want when you get older is to start taking care of your money while you are still young.

Most students first face the challenge of budgeting when they go to university, since for many this is the first time they will be living away from home. Suddenly, a small income has to stretch to cover tuition fees, accommodation costs, insurance, new books, entertainment and food. With no previous experience of money management, it can be easy to slide into debt and find yourself in financial difficulties.

However, although balancing your budget as a student can be daunting it is important to remember that following a few common sense guidelines can make a huge difference to your finances in the long-term. There is no reason why you should not be able to cover your essential outgoings and still have money to spend on hobbies and entertainment if you are prepared to act sensibly and manage your money effectively.



For details of how to get started, see:

 



* Stanley, Thomas J., The Millionaire Next Door (Georgia: Pocket Books, 1998).

** Sethi, Ramit, I Will Teach You To Be Rich (New York: Workman Publishing, 2009).