Some schools and universities will remain closed with learning is being done online. However, now is still the time to talk about money management tips for students.
With coronavirus’ affect on the economy, it is now more important than ever for students to become better money managers.
Christine Benz, says that young adults need to understand the importance of flexibility.
“That means having an emergency fund, mainly, but also staying financially flexible. For example, being willing to move to a cheaper housing situation or make other lifestyle adjustments.”
Here are a few more of her personal finance tips for students, during the ongoing coronavirus pandemic.
Tip 1: Look for Silver Linings in Change
Benz says that the pandemic has created financial challenges to be sure. It also may have created some new opportunities for young people to rethink their financial goals. She says, “Ask yourself, how have social norms and consumer habits changed? Did any careers become more appealing to you? Do you think those changes will last?
Take inventory of the skills and resources you used during these trying times. Where did you find your most reliable information? Did anyone help you? Why did they help you? What were the most rewarding things you did this summer?”
Tip 2: Don’t Be Shy About Asking for Help
Benz says another “silver lining” brought on by the crisis, is that everyone has had to reach out for help. Perhaps students at home, saw that parents had to deal with job loss, and go through the process of applying for unemployment, or other assistance made possible by government grant and loan programs. She says this should encourage students to understand there is no shame in asking for help, for their physical, emotional, or financial wellbeing.
Tip 3: Human Capital for Students
Reaching our financial goals involves time and money. Benz says now is the best time for student to understand the value of “human capital,” in obtaining long-term financial goals. One of the best investments students will ever make is in their own human capital–their lifetime earnings power,” says Benz. “And just like investing in the market, the earlier they make additional investments in human capital and additional education, the more it’s likely to pay off.”
Tip 4: Sweat the Small Stuff – A Little
Sure there is the expression, “Don’t sweat the small stuff,” but, when it comes to personal finances, Benz says it’s important to keep track of certain “little things,” that can add up to big savings!
Your credit cards should be no fee and cash back if you’re on a starting salary (reward ‘points’ make you wait and lead to things you don’t need). And you should have the habit of looking for a student discount or coupon code on anything you buy, especially online.
Lastly, don’t forget the little benefits from those silver linings! “One of the expenses that can really add up for students is eating out and buying drinks,” says Benz. “With most schools moving to e-learning, this is a great opportunity to try cooking at home and developing healthy habits.”
What do you think of these Money Management tips for students? Are there any you would like to add? Please reply using the comments below.