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Student’s Money Management Tips

Student’s Money Management Tips- IPTS&IPTA students

Student life is a great opportunity to learn how to manage your money effectively. This may sound a boring task, but it is vital skill to master which will help you throughout the rest of your life. As a student you will typically rely on one or more of the following sources of income:
1) Student loan;
2) Scholarship;
3) Money from parents;
4) Part-time job;
5) Savings

Once you have organized your income, organize your outgoings. Although students have a lot of outgoings, most have a very limited income

1. Firstly, make a list of all your expenses and write an estimate of the amount. Some may be fixed, such as tuition fees and accommodation costs, whilst others such as food and entertainment costs will be flexible. Any flexible expenses are ones which can be reduced to relieve your budget.

2. Your budget should include your everyday living expenses, including:
a. Accommodation (rent and other bills)
b. Food & Groceries
c. Transport
d. Books
e. Clothes and other considerations
f. Entertainment

3. There are many ways for students to save money, even on essentials
a. Groceries: before you go food shopping, make a list of the items you need;
b. Books: Go for second-hand books from senior students. Look at notices at the faculty, residence notice boards or the student newspaper;
c. Transport: if possible, use public transportation. You may be eligible for a student discount. Carpool home with other students to cut costs.

4. Watch your spending: Track your spending to find out where your money is going. Are four trips to a “PREMIUM coffee Place” a week really necessary?

5. If you have credit cards. Minimize credit card use. Pay balances off in full every month. Use credit cards only for emergencies, not for entertainment. Set your own credit limit. Just because you have a credit card with a RM2K credit line doesn’t mean you have to spend RM2K

6. Get a bank account.

7. Borrow only what you need

Final reminders:
1) Make your student loan payments on time when you are in repayment
2) Keep a simple lifestyle
3) Be particular/cautious when it comes to money: Don’t just trust anyone with your money

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March 18, 2010 - Posted by | Uncategorized

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