Being a student is tough. Between cramming for exams and listening to lecturers drone on, it’s made even tougher when you’re dusting off the cobwebs in your wallet. Whether you’re a university student that’s wet behind the ears and looking to make your money work for you, or a young professional looking to spend wisely as you step into the big world, Cape {town} Etc spoke to financial literacy coach, Talya Plaatjies from Fashionably Financial to help us craft a few tips for students.
Having completed her BCom Management Studies degree and worked in the investment management industry for a number of years, she knows exactly what she’s talking about. Through Fashionably Financial, she’s hoping to help millennials create better money habits in order to live their best lives while achieving financial freedom.
Here are her top tips for managing your money as a student:
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Looking back on my university years, which weren’t that long ago might I add, I remember having the absolute time of my life. I’d just moved to Cape Town, I was meeting my fellow students and enjoying a newfound sense of freedom. I can’t imagine the emotions my poor parents went through, dropping off their 18-year-old daughter in the big city after living in Port Elizabeth.
I’ll tell you one thing, it was one of the best decisions I’ve ever made in my life. With this new sense of freedom came responsibility which I wasn’t expecting – managing my own money for the first time.
Of course, at the tender age of 18 in a new city, drawing up a budget was the last thing on my mind. With all the social activities going on, the partying and just admiring the view from the Jammie Steps, the only time I thought about money was when I didn’t have any. And that was usually halfway through the month!
I always felt quite broke as a student but it never stopped me from having a good time, but there are certain things I wish I had done to stretch my money a little further. But we live and we learn and you’re in luck because now that I’m a little older and somewhat wiser (I hope), I can share some tips on how to manage your money as a student.
Draw up a budget for yourself
It sounds like admin but it doesn’t have to be. A simple plan telling your money where to go instead of wondering where it all went will help you in the long run. You would think that after studying for a Bachelor of Commerce degree, drawing up budgets in my accounting and finance lectures would inspire me to draw up a budget of my own, but no.
I didn’t do it back then and I wish I had, it would have made my life a little easier. A general rule of thumb to follow would be the one made famous by Senator Elizabeth Warren. 50% of your budget should go to your needs, 20% towards saving and 30% towards your wants. As a student, this can be challenging and that’s why it’s just a guide.
Trying to implement a budget in your life is better than navigating university without one.
Second-hand textbooks are a must!
You can often find places on campus or even other students who are looking to sell their textbooks. There is no need to get the shiny, brand new version when the lecturer has prescribed the same textbook for the past four years. Also, once you’re done with your textbooks you can sell them to the students in the year below you – it’s a win-win.
Find a side hustle/side job
As students, walking into any year of studies can be intimidating. I would say once you have found your groove academically and feel a bit more comfortable with this new chapter of your life, look for extra ways to make money.
These should be jobs that won’t take up too much of your time or affect your university schedule drastically. Consider jobs such as tutoring school kids, coaching a sport, doing promotions on weekends or even waitering. Every little bit of extra cash when you’re a student is more than welcome.
Start saving as soon as possible
Now, I know what you’re thinking, you barely have enough money to survive the month never mind save! I’m going to challenge you and say try starting small. It may be R50 a month, it may be R100 a month. It’s not about the amount you save, it’s about the habit you create.
The sooner you start, the easier it will be when you start that corporate job or your own business one day. The best thing you can do is just start.
“Comparison is the thief of joy,” said Theodore Roosevelt.
This was true when I was a student and it’s still true 10 years later. There will be other students who have more to spend than you do. They might drive past you in an Audi while you stand in line to catch a bus to campus. They might be getting takeaways for dinner every night and that’s okay.
If you focus on what others have, you take away from your own experience. I can’t even remember the number of times I had popcorn or 2-minute noodles for dinner. Laughing at those memories now make it all worth it. There will always be people who have more and even less than you but don’t focus on them. Focus on you, what you have and your goals.
Bonus tip!
Remember how I said being broke didn’t hold me back from having fun as a student? That’s because I used every student discount under the sun! I would find any 10%, 15% or sometimes 20% discount and make use of it. All you have to do was show your student card and bam! Student discount activated.
It helps to have other student friends in the same predicament. This way you can keep each other in check and make sure you’re optimising on all the student discounts. University can be stressful, challenging and yet so much fun. Embrace this sense of freedom as you transition into life as a young adult. You got this!
For more tips and tricks from Talya, make sure you follow her on her various social media channels:
- Instagram: @fashionably_financial
- TikTok: @fashionably_financial
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