Edited by Olivia Spahn-Vieira
Let’s talk about money. For many of us, university may be your first experience being financially independent. No longer do your groceries magically show up in your fridge or detergent in your laundry basket. When I first moved out, I underestimated how frequently I would need to buy dish soap, and just how quickly those costs would add up. Money may be intimidating to talk about and even harder to manage at first, but these tips will help take some of the stress out of managing your money.
- Set a budget
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Don’t underestimate the value of tracking your monthly spending! Before looking towards building a budget for the upcoming month, take a look at your past month’s spending. Break the spending down by category; separate your grocery spending from your going-out spending and your monthly bills. Once you’ve got your categories, take a look at each segment as a piece of your overall spending. Are you happy with how you have been spending your money? If you want to be spending more time trying new recipes at home or picking up latest releases at the local bookstore, see what you can swap out to make that happen! Budget in your essentials, and be mindful of how you spend the rest.
- Student discounts exist!
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Being a university student sure has its perks. For $10/year, you can secure an SPC membership. I love the SPC card as it gives me discounts at my local pharmacy, poke bowl spot, and lots of clothing stores I frequent. Ask your local grocery store if it offers student discounts on certain days to help you save a little extra every week. Lots of local spots offer discounts on their products if you flash them your student ID, so be sure to ask next time you grab a latte at the neighborhood café!
- Take a look at your credit score
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If you have a credit card, you should be monitoring your credit score. High credit scores show lenders that you are a good candidate to lend to. Most banks offer frequent free credit reports that allow you to check in on your score. Opening up a credit card and paying it off regularly helps build a solid score, which could help you borrow money or secure a mortgage. If you have any future financial ambitions, put in the work now to help your future self thrive!
- Build an emergency fund
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A pandemic was not what anyone expected for 2020 and an accidental expense is just as unpredictable. Setting up an emergency fund and setting aside a bit of money to it every month helps manage that uncertainty. An emergency fund is separate from a savings account and should only be used in case of actual emergencies. Unemployment, illness, and emergency home repairs are all good reasons to dip into that money. You can see it as a safety net- you may not need it right now, but it sure is good to have!
- Hardest step- talk about money
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Money is scary. It’s intimidating and easy to avoid. There have been weeks where I know my spending had been out of control, and instead of checking my bank account and facing my fears, I avoided looking at the app and thinking about where my money was going. I finally decided to face my fears and set up notifications for every time money is withdrawn from my account. Getting a notification on my phone does not actively change my spending habits, but it does make my spending feel like more than a tap of my card. At the end of the day, I look through the texts and review how those expenditures made me feel and hope I do better the next day. Confronting the realities of my spending and talking about my budgets with friends makes the topic of money feel less foreign, which ultimately makes me feel more secure in my decisions.
Money management should not feel like a guilt trip. Continue to learn about how to make your money work for you, and empower yourself to be more responsible with what you have.