6 Excellent Money Habits for University Students | | Managing Your Money Series

6 Excellent Money Habits for University Students

Personal financial planning can be the last thing on any university student’s mind, yet the financial choices you make now will influence the rest of your life.

Here are six behaviors young people should adopt sooner rather than later.

1. Plan a budget and stick to it

Budgeting is a vital first step to managing money properly. Set financial objectives such as paying off debts, saving for a small getaway, or simply spending less on bubble tea, then employ your budget to help you attain them.

It is crucial to monitor your costs to have a clearer picture of where your money is going and how much you truly need. Create categories for each item such as food, rent, transit, savings, and even weekly pleasures.

2. Manage your debt

Student debts might be considered as a smart investment for the future. But although a student loan has lower interest rates than most, it is not free money, so be responsible in repaying your loans when they come due.

Your commitment for repaying your loan is crucial for future impoverished students to get education support as well.

Manage your debt by knowing the value of your student loan and the duties involved.

Alternatively, seek for scholarships, grants, and work-study programmes that don’t demand repayment.

3. Get insured

Medical insurance isn’t only for the elderly — the last thing you want is to be hospitalized and saddled with debt while you’re still studying.

Pick a plan that guarantees you are properly protected in the event you become unwell. Speak to trained insurance brokers for help, and compare policies to select the one that best meets your requirements.

Note, though, that some higher educations give student health insurance with their scholarship offers.

4. Create emergency and investment funds

Within your budget, proactively put aside a little bit of money on a weekly or monthly basis for two distinct accounts.

Start with an emergency fund, a backup financial reserve for the unforeseen. Leave this in a savings account that may be accessed quickly if required.

Next, form an investing fund, and invest this capital no matter how small. Look for possibilities with larger yields and compounding interest, but beware of scammers and avoid genuine companies that demand a lot of your time.

Lifelong financial discipline comes with learning early on to adhere to a budget and savings plan. 

5. Earn money

Earning a paycheck comes with additional financial and legal obligations. Whether it’s your first paid internship, a part-time employment while at university, or a work-study programme, be aware of your rights and duties as a worker.

• Malaysia’s minimum salary is RM1,200 a month and will be raised to RM1,500 beginning May 1.

• Employers are able to provide unpaid internships.

• Wages must be paid within seven days of payday.

• Employers are obligated to make statutory deductions in addition to paying wages.

• Employers must pay to their employees’ EPF and Socso in addition to these deductions.

• Under federal law, companies cannot discriminate against workers based on their age, race, religion, or gender.

Review all employment contracts carefully before signing.

6. Practice discipline

Learning financial responsibility is part of growing up, and financial peer pressure from friends or classmates may damage your budget.

Always employ financial discipline, even if your budget is successful or you have already began to earn a paycheck. Assess your goals and requirements and allow yourself a little increase in your spending allocation, but always live within your means.

Happy Investing! 😉