14/12/2020
How to Save Money as a Student?
7 Tips to Help You Take a Step Ahead in Your Savings Journey
You probably heard that saving is a good habit. But do you know what saving means? Is this about the piggy bank, where you put 5 pesos every day, that's hidden under your bed? An old-fashioned mindset that only the older generation bothers to care? Or is this something else
Saving is much more than simply putting your money aside in a piggy bank, and it's not only for people who are working! It's about managing your finances; letting your money grow instead of go. This idea can be precious to you because the earlier you save, the more time you'll have to increase your cash which means, now is the best time for you to start saving!
How to save money as a student
Check these practical tips:
1: Start a savings plan
List your monthly income sources like allowance, salary from a part-time job, etc. and deduct it with your expense (lunch, transpo, data, date, etc.). How much of the remaining amount would you save, and how much for shopping?
Set yourself a realistic savings target because that's what keeps your savings plan sustainable. Going for the extreme like saving 90% of your money at the beginning only gives you an excuse to give up early on. You may start with saving 20% of the money, and if you find it easily achievable, set a higher goal the next month!
Tip 2: Manage your daily expense
Are there any expenses that you can avoid? An example could be something as simple as your mobile data. Do you usually use up your allowance paying for mobile data? While free WiFi is more common these days, you can consider relying more on this free resource instead of paying for this expense monthly? If payment is unavoidable, always look for the most affordable options available. By sparing ₱100 a day in a meal, you are saving ₱36,500 more in a year to spend in the future, even more, if you put it into a savings plan.
Tip 3: Buy, swap, sell
You don't need new textbooks with shiny covers in every class. You can buy used books because you probably won't read it anymore after the semester. But wait - do not just throw them away, sell them! This practice doesn't only apply to your school supplies: you can swap stuff with your besties and coursemates, or sell them online!
Tip 4: Free yourself from debt
If you have a credit card, pay it off as quickly as possible. Don't take out a loan for anything that's not related to your education. Credit card bills and loans are too heavy for students to carry unless you wish to bring them on and on. You won't want to enter your first job after graduation already in debt!
Tip 5: Check for discounts
One advantage of being a student is, no doubt, the student discounts! Go to a shop that offers student discounts.
This idea can also apply when you shop online. Before clicking , look up for promotional codes and check if there is any student offer you can sign up for!
Tip 6: Be creative
There's much more to do for fun than just having dinner and going shopping every week. More money spent does not equal more fun. You don't need a karaoke machine to sing with friends, ever heard of TikTok, Smule or YouTube! There's also a different kind of fun when you cook or bake at home with friends and family. So, be creative and try other things. You'll realize you don't need to 'buy' happiness.
Tip 7: Start investing for your future self today
TA-DAH! Yes, you are saving for your future, and one of the best ways to help the future you is by planning today. Millennials and students should start saving early in particular, as this allows your money to grow over time with compound interests. What are you waiting for? We at Manulife can help you take that first step to make you every day better. Start a savings plan or talk to an adviser to help you plan out your finances for the rest of the year. Gift yourself the benefit of ending the year strong and entering next year wiser.
