How to Save Money as a Student?
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7 tips to help students take a step ahead in the journey of saving
You've probably heard from your parents or the elders that saving is a good habit. But do you really know what saving means? A piggy bank, where you used to put 5 pesos in every day, that's hidden in your closet or under your bed? An old-fashioned mindset that only the older generation only bothers to care about?
Saving is much more than just putting your money aside in a piggy bank and it's not just for people who already work! It's about managing your finances; letting your money grow instead of go. This can be extremely valuable to the youth, because the earlier you save, the more time you'll have to grow your money. Which means, boys and girls, now is the best time for you to start saving!
Here are some practical tips to help you save money as a student:
- Tip 1: Set a savings target
List out your monthly income sources such as pocket money/allowance, salary from part-time job, etc. and deduct it with your necessary expense (like lunch, bus and jeepney fare). How much of the remaining amount would you reserve for savings, and how much for shopping?
Set yourself a savings target, a realistic one, because that's what keeps your saving plan sustainable especially as a student. Going for the extreme claiming that you will save 90% of your money at the beginning only gives you an excuse to give up easily. You may start with saving 20% of the money, and if you find it easily achievable, great job, set a higher goal next month!
- Tip 2: Manage your daily expense
Are there any expenses that you can actually 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 an expense 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 text books with shiny covers in every class. You can buy used textbooks because you probably won't read it anymore after the semester. But wait - do not just throw them away, sell them! This doesn't just 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, loans, debts are too heavy for students to carry, unless you wish to carry them on and on... you won't want to enter your first job after graduation already in debt!
- Tip 5: Know your discount
One of the best things of being a student is, with no doubt, the student discounts! Go to a shop that offers student discounts and proudly present your student ID (Reminder: always bring your student ID with you wherever you go, even when you're outside the campus. Not just for the discounts, but also for safety!).
This can also apply when you shop online. Before clicking #AddToCart, 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 different things. You'll realize you don't need to 'buy' happiness.
- Tip 7: Invest in 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. Millenials 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 your 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.
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