Financial Planning For Students
Financial planning begins when a person is planning his or her daily expenses. Almost all children get pocket money when going to school daily. However, not all of them know how to spend the money wisely.
Below are some tips that can help students in financial planning:
Plan your expenses
When you receive money, plan the expenses. Make saving money as a habit of everyday life. Record the amount each time you receive a pocket money or school allowance. Write down all expenses to be made so that you can estimate the potential savings. Avoid spending more than the allocation made. This is to prevent deficit or having to borrow money.
Spend your money wisely. Buy only things you need.
Do not borrow money from anyone merely for failing to control your spending. As a student, try to avoid borrowing money from friends or lend your money to your friends.
Do not lie to your parents just because you want money.
Do not ask for something your parents can’t afford.
Make sure you always have money in hand
Avoid spending money until the it runs out. This is because it is necessary to always have money available for use at any time.
Keep money at a safe place
The remaining money in hand after spending should be recorded and kept in a safe place. Keeping it in a bank is not only safe, but it also provides income in form of interest. Ask parents or teachers on how to open a savings account at a bank.
Make money as a tool to generate income and provide returns. Money saved in a bank will increase its value when the banks gives out interests.