As students, we are navigating the adult realities of our financial lives with limited resources. This can mean finances are a source of stress and exhaustion. Here are some of the things that have been helpful in my own journey as a student. These are strategies which have helped my financial life feel more sustainable, enjoyable, and stable.
1. Make a Yearly Plan
At the beginning of every school year I sit down and ask myself three questions:
What money do I have?
What money will I receive (from loans, scholarships etc.)?
What money will I spend?
These three questions provide a backdrop for my year and allow me to look at the big picture and plan what I will be spending from month to month. With an understanding of the big picture, I find I am much less stressed on a monthly basis because I know I have planned what I am spending.
2. Plan Monthly
I make it a priority to sit down with myself once a month to pay myself and keep up to date on what is going on in my bank account. This allows me to have a good sense of what I am spending. I use a 2 bank account system where I transfer money to my chequing account each month. When my chequing account is empty, I stop spending. For some people, this might even need to be a weekly conversation.
3. Check your bank account once a week.
I manage my finances most of the time without ever touching cash. Because of this, it is necessary and important that I take a look at my bank account at least once a week so I know how much is still in my chequing account. It is amazing how quickly the money disappears and being declined at the grocery store or while out with friends is a situation everyone wants to avoid!
4. Go through your credit card transactions once a week.
This goes along with checking your bank account once a week. If you are in the habit of using a credit card, it is good to check your balance every week to ensure you are the only one using your card. Recently a friend of my had their card hacked and thousands of dollars of charges racked up. If they weren’t in the habit of checking their account regularly, it would have gone unnoticed and would have made the whole situation much worse.
5. Pay your bills on time.
Even if you can only make the minimum payment, pay your bills on time. Whether this is cell phone, credit card, rent or any other monthly expense do your best to pay everything on time. Write out a calendar of when payments are due if this will help you to remember, or send yourself an email reminder the day before so you can’t forget.
Forgetting to pay your bills can have long term impacts on your credit score which make it much more difficult to access loans and other services later in life. Even if you can’t make the full payments each month, making at least your minimum payment preserves your credit score.
6. Look for loans and grants
Don’t think that just because you aren’t the smartest or most interesting person that there aren’t grants or scholarships for you. Even spending a few hours on a Saturday afternoon can be well worth the effort if you make a few hundred dollars!
7. Take advantage of free services.
Universities provide many free services including health plans, child care, gyms and swimming pools. Get to know your school and what it offers for free when it comes to health care, counselling or financial education. If you are struggling to pay for food, clothing or other necessities find out if your college or university has food pantries or clothing swaps. Outside of school, many places offer discounts to students so make sure you check those out before paying full price.
8. Use your local library
If you are lucky enough to live close enough to your local library, take advantage of the free resources they offer. My local library has free museum passes, books, movies along with a free place to study and local events. It is a great way to get connected to your local community as well!
Last but not least: educate yourself financially! Find books, blogs and seminars which will expand your understanding about the financial world we live in. Whether you are interested in finance or not, money is a big part of our adult lives. The sooner we learn about it, the easier it will be for us later on.