Effective ways to managing student finance in a modern Nigeria
First of all, what is finance?
Finance refers to money/funds in your possession which will ordinarily be used in solving money related issues as it it concerns a student or others in a wider perspective.
Financial management (personal) on the other hand stands for gaining and understanding of your financial status in order to make the most of your assets in day-to-day life and in planning your future. Simply put, financial management means watching what you spend and saving from same to maximize wealth in view of rainy days ahead.
As students, we tend to develop this habit of spending excessively and carelessly. Reason behind this being that about 90% of the money in our possession is not earned by us but rather given to us by parents, sponsors and friends. If only we work, sweat and earn our money, we don’t need a finance manager to teach or caution us while spending.
Come to think of it, why do you think parents don’t easily give us money when we ask for it? This is because they weigh all aforementioned , checking and analyzing whether the problem at hand is a WANT or a NEED.
It doesn’t mean that they don’t love us or they want us to suffer, No. the truth behind this particular action of theirs is that they worked so hard to make this money. They work themselves out trying to make ends meet and so they can’t easily waste it thus an igbo adage,” Ejighi a kpata a tufuo a bu ogaranya” meaning that “Wealth is not made from earning and extravagant spending”.
EFFECTIVE WAYS TO MANAGING STUDENT FINANCE: HOW DO STUDENTS ACQUIRE THEIR FINANCES?
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- From Sponsors (Parents and Guardians)
- Scholarship Schemes
- Personal earnings and investments (20%) etc.
How do students spend their money?
Apart from the necessary things like school fees and rents, there are other ways students spend or things they spend their money on. Examples of such things are: feeding, electricity/gas, internet subscription, mobile phones, clothing and wears, travelling, books and stationery, social events like parties, clubs, outings etc.
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How do I multiply my pocket money as a student?
- The first thing a student should learn is to save. Saving a little portion of every money that comes into your pocket. Let’s say 30%. This is a good habit to inculcate not only for today but for the nearest future.
- One of the ways to multiply your pocket money as a student is by finding a job or creating a side hustle. For example, a student can look for a part time job in any organization, firm or office close by to work as a part timer. He or she can also create side hustle by first acquiring various skills and then using those acquired skills to make ends meet at spare time. He can also indulge in business such as buying goods in wholesale from the market and selling in retail to students thereby bringing the goods at their doorsteps.
- Students can also multiply their income by lendind out money to their fellow students with profits added to it.
The Do’s and Don’ts of every student as regards to student finance
The Do’s are:
- Spending and living within your means: You must not spend to impress any one.
- Making budget for every cash inflow: This helps to curtail extravagancy.
- Saving a little portion of every cash that gets to you no matter how small. This habit will be of great help both now and in days to come.
The Don’ts are:
- Don’t live to please anybody or to belong.
- Avoid spending out of your budget.
- Do not borrow unnecessarily.
- Avoid things you can’t afford now.
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Benefits of effective student finance management
- It enables effective and efficient good use of available resources
- It helps in preparing one for long term financial stability
- Learning the habit of saving and budgeting which is very essential in the business world.
- Reduce crimes. When I learn to live within my means, I am also learning to be contented with what I have and In the case of serious financial need, I can move out of my zone to source and hustle for money illegally.
- It helps one to inculcate the habit of hard work.
- It helps one to learn how to multitask, planning and managing time effectively.
- It also creates avenue for meeting people, expanding your connections, network and paving ways for the future,
It pay to practive effective student finance management, it will help you a long way. Your ability to acquire wealth to a great extent depends on your ability to manage little funds at your disposal, start today and be a happier student. see https://www.gov.uk
Ifeoma Luisa Oketa is a student of Nnamdi Azikiwe Universty Okofia campus Nnewi. Faculty of basic medical sciences, department of Anatomy. She’s an ardent writer who beleives that students should take responsibility for their finances.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.