Timilehin Ogunleye
The state of the country’s economy, inflation rate, skyrocketed price of goods are factors affecting the financial life of average Nigerians, students also bear a huge burden from this horrible situation.
The Financial life of student is drastically affected, as most students rely on attending events in return for “item 7”, some rely on going on outings with strangers to get goodies in return, some even sleep on empty stomach in other to conserve the little resources they have. Managing money as a student can be challenging, especially when balancing tuition, rent, food, and social activities. However, with proper budgeting, students can avoid financial stress and make the most of their available resources.
Why Budgeting Matters for Students? Budgeting helps to track level of income and expenses, preventing overspending or running out of money before the next allowance or paycheck. Without a budget, many students fall into debt, rely on loans, or struggle to afford necessities. For instance, a student who spends impulsively on takeout and entertainment may find themselves unable to afford getting necessities before the allowance comes in and may rely on other students for survival which may cause a strain on the other.
Budgeting to some extent avoid such situations.Steps to Create a Student Budget:
1. Track Your Income and Expenses: Start by listing all sources of income, such as: Allowance,Part-time job earnings, Scholarships or grantsNext, track your expenses, including: Tuition fees, Rent and utilities,Food (groceries vs. eating out),Transportation, Books and school supplies, Entertainment (movies, hangouts), miscellaneous.
2. Prioritize Needs Over Wants: A common mistake students make is spending on non-essentials before covering necessities. For instance, buying new clothes or going out every weekend may leave little for rent or textbooks.Tip: Use the 50/30/20 rule:50% for needs (rent, food, school fees)30% for wants (entertainment, shopping)20% for savings or emergencies.
3. Cut Unnecessary Costs: Small expenses add up quickly. After Bayo has gotten his monthly allowance, he suddenly loses his appetite in home made foods and prefer to eat out, take drops to classes, buy most things he sets his hand on. Bayo’s attitude isn’t ideal for a student.
4. Use Budgeting Tools to ensure discipline; Try: Spreadsheets (Excel, Google Sheets), Budgeting apps (Mint, PocketGuard), reminders to track spendings. For instance, A student using a budgeting app realizes they spend ₦10,000 monthly on unused gym memberships and cancels it to save money.
5. Build an Emergency Fund; Unexpected expenses (medical bills, phone repairs) can disrupt your budget. Save at least 10% of your income monthly. For instance, A student saves ₦5,000 monthly. After six months, they have ₦30,000 for emergencies, avoiding debt when their laptop breaks.
6. Avoid Debt and Use Credit Wisely: Credit cards and loans can lead to debt if misused. If you must borrow: Pay bills on time to avoid high interest, Use loans wisely. For instance, A student who maxes out a credit card on shopping struggles to repay ₦100,000 with 25% interest, making their debt grow.
7. Earn Extra Income; If budget is tight, consider: Freelancing (writing, graphic design), Tutoring, etc. Example: A student earns ₦15,000 monthly tutoring math, covering their miscellanous costs. Budgeting sometimes is mistaken with deprivation, while budgeting is far from depriving oneself, it means spending wisely to avoid financial stress.
By tracking expenses, cutting costs, and saving, students can enjoy their school years without money worries and lastly to avoid “see finish”. Start small, stay disciplined, and adjust budget to maintain equilibrium. With these tips, strong financial habits that last beyond school could be built.
